The Central Bank of Nigeria (CBN) has extended the suspension of processing fees on large cash deposits, allowing individuals and companies to continue making substantial deposits without incurring extra charges until March 31, 2025. This move is part of the CBN’s efforts to ease the burden on depositors and enhance liquidity in the banking sector.
According to the CBN, individuals can deposit over N500,000, while companies can deposit more than N3 million without facing the previously applicable fees. Under the old policy, banks charged 2% for individual deposits and 3% for corporate deposits. The fees were briefly reinstated on May 1, 2024, but were quickly suspended following widespread customer complaints. The latest extension prolongs the grace period that was initially set to end on September 30, 2024.
The decision was communicated through a circular issued by Adetona Adedeji, the CBN’s Director of Banking Supervision, and banks have already begun notifying their customers about the extension. Analysts have welcomed the decision, noting that it reflects the CBN’s intention to promote greater participation in the formal banking system, especially during a period of economic reform.
The policy to suspend fees on large cash deposits was first introduced in May 2024, following concerns that the charges outlined in the “Guide to Charges by Banks, Other Financial Institutions and Non-Bank Financial Institutions”—originally issued in December 2019—were discouraging people from depositing large sums. The move was seen as a relief for bank customers, and the extension continues this approach, aiming to support the economy by maintaining liquidity within the banking sector.
Market analysts say the extension is timely, as it helps stabilize the banking sector, which has been navigating challenges such as inflation, exchange rate fluctuations, and other macroeconomic pressures. The CBN’s decision is seen as an effort to sustain customer confidence by ensuring individuals and companies can deposit funds without worrying about additional costs.
“The CBN is working to stabilize the financial system, and this extension of the fee suspension is a strategic move to maintain confidence among depositors,” said a market analyst. “It also encourages more Nigerians to bring their funds into the formal banking system, boosting liquidity and supporting ongoing economic reforms.”
By continuing the suspension of processing fees, the CBN hopes to encourage financial inclusion and reduce dependence on cash transactions. The initiative is expected to make it easier for people to transition to digital banking and promote more transparent and secure financial transactions across the country.
