Starting today, September 18, Nigerians will have to pay some extra cash every time they deposit or withdraw more than NGN 500 K.
The Central Bank of Nigeria has imposed new charges on every deposit and withdrawal on bank accounts in some states in the country. And the new range of charges will take effect immediately.
In a circular issued to all banks on Tuesday, September 17th, titled: “Re: Implementation of the Cashless Policy,” CBN said the new charges on depositors apply to those in Lagos, Ogun, Kano, Abia, Anambra, Rivers state and the FCT immediately.
The statement further stated that the new charges would be in addition to existing charges on withdrawal.
For individual accounts, withdrawals above NGN 500 K will attract an additional charge of 3 percent. Deposits will attract a 2 percent charge.
For corporate accounts, any withdrawal above NGN 500 K will now be accompanied by a charge of 5 percent. And 3 percent will be charged on deposits.
What This Means
For example, a withdrawal of NGN 600 K on an individual account will come with a charge of NGN 3 K — that’s an extra NGN 3 K withdrawn from the account.
Similarly, a deposit of NGN 600 K would imply that the person paying in will have to part with an extra NGN 2 K. For corporate firms, the fees will even be higher.
Why The CBN Is Doing This
The new directive can be thought of as the CBN’s way of further enforcing the “cashless policy” which has been talked about for some time now.
The cashless policy is aimed at cutting down significantly on the amount of currency in circulation while encouraging novel, electronic modes of payment.
Sam C. Okojere, Director, Payments System Management Department said the nationwide implementation of the cashless policy will take effect from March 31, 2020.
The CBN introduced a policy on cash-based transactions in 2012. The policy stipulates a cash handling charge on daily cash withdrawals that exceed NGN 500 K for Individuals and NGN 3 Mn for corporate organisations. And the latest development can be thought of as an extension of the policy.