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Naira Scarcity: CBN suspends charges on cash deposits above N500,000

The immediate past CBN governor, Godwin Emefiele, had, in a bid to further promote the cashless policy in the country, implemented the cash deposits limit.

• December 11, 2023
Central Bank of Nigeria (CBN)
Central Bank of Nigeria (CBN)

The Central Bank of Nigeria (CBN) has suspended processing charges placed on cash deposits exceeding N500,000 for individual accounts and N3,000,000 for corporate accounts until April 30, 2024.

This directive, seen by Peoples Gazette, was issued in a letter to all banks, financial institutions, and non-bank financial institutions, dated December 11 and signed by the acting director of banking supervision, Adetona S. Adedeji.

The immediate past CBN governor, Godwin Emefiele, had, in a bid to further promote the cashless policy in the country, implemented the cash deposits limit to check cases of money laundering and other illegal financial transactions.

However, the new directive by the apex bank read, “Please recall that processing charges imposed on cash deposits above N500,000 for individuals and N3,000,000 for Corporates as contained in the ‘Guide to charges by Banks, Other Financial Institutions and Non-Bank Financial Institutions’ issued on December 20, 2109, under reference FPR/DIR/GEN/CIR/07/042.

“The Central Bank of Nigeria hereby suspends the charging of processing fees of 2 per cent and 3 per cent previously charged on all cash deposits above these thresholds with immediate effect. This suspension shall remain in effect until April 30, 2024.

“Consequently, all financial institutions regulated by the CBN should accept all cash deposits from the public without any charge going forward. “

The directive comes amid complaints by some bank customers about the scarcity of naira notes at the counters, Automated Teller Machines (ATMs), Points of Sale (PoS), and Bureaux de Change (BDCs). Some Deposit Money Bank officials also claimed they were not getting an adequate supply of cash from the CBN.

But the apex bank on Sunday claimed there was an adequate supply of the currency. It said the seeming currency scarcity was occasioned by large volume withdrawals from various CBN branches by DMBs.

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