NIGERIANS BEGIN PAYMENT ON CASH DEPOSITS TODAY

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Joseph Omoniyi

In a bid to further promote the cashless economy and to enhance the collection of applicable government revenues, the Central Bank of Nigeria, CBN’s directive to start charging bank customers on cash deposits or withdrawals take effect today.

According to CBN, the objective of the “transaction fees” is to give vent to the Central Bank’s policy designed to reduce cash in use.

Announcing the take off of the new policy on Tuesday, CBN Payments System Management Department Director Sam Okojere said in a statement:

“The transactions will attract three per cent processing fees for withdrawals and two per cent processing fees for lodgments above N500, 000 for individual accounts.

“Corporate accounts will attract five per cent processing fees for withdrawals and three per cent processing fee for lodgments above N3 million.

“The charges will, however, only apply in Lagos, Ogun, Kano, Abia, Anambra, Rivers and the Federal Capital Territory (FCT),” he said.

Okojere said the implementation of the cash-less policy nationwide would take effect from March 31, 2020.

How it works is that, if you deposit N500,000 in your bank account, CBN will take 2% = N10,000. Your balance will be N490,000.

If you withdraw N200,000 from your bank balance of N490,000, CBN will take 3% from that withdrawal = N6,000. Your withdrawal will be N194,000

The CBN also did a review of the process for merchant settlement.