CBN extends suspension of cash deposit fees to ease economic strain on Nigerians

The Central Bank of Nigeria (CBN) has extended the suspension of cash deposit processing fees for individuals and corporate accounts until March 31, 2025.

This move is aimed at providing financial relief to Nigerians facing economic pressures, particularly in light of rising inflation. The extension was announced in a letter signed by the CBN’s Director of Banking Supervision, Adetona Adedeji, on Friday in Abuja.

Initially introduced in May, the suspension was set to expire on September 30, 2024. The extension now covers cash deposits exceeding N500,000 for individuals and N3 million for corporate accounts, continuing to exempt them from the standard two percent and three percent processing fees, respectively.

Economic analysts have praised the CBN’s decision, citing the importance of reducing the financial burden on businesses and individuals amid the challenging economic environment.

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Financial expert Dr. Ayo Salako noted that “this extension reflects the central bank’s understanding of the current pressures on the average Nigerian. By lifting these fees, the CBN is helping to ease liquidity concerns for both individuals and corporate entities.”

The extension comes as many Nigerians continue to express discontent over the previously imposed fees, arguing that they disproportionately affect those with limited access to digital banking services.

Prior to the suspension, the fees had drawn criticism for adding an extra layer of cost, particularly for those relying on cash transactions in a largely cash-based economy.

“The CBN’s move is significant for small and medium enterprises (SMEs) that often struggle with liquidity and cash flow management,” said business consultant Kemi Ogunsanya. “By waiving these fees, the bank is enabling businesses to operate without the added financial strain of processing charges.”

With the extension, the CBN is reaffirming its commitment to support the Nigerian economy and protect the interests of citizens during a time of economic uncertainty.

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The measure is expected to provide immediate relief and allow individuals and businesses to focus on more pressing financial priorities as the country navigates ongoing economic challenges.