From March 31, Nigerian banks will charge you 2% for every deposit above N500,000

Godwin Emefiele, CBN governor, speaking at the end of the 270th meeting of the Monetary Policy Committee (MPC) at the apex bank’s headquarters in Abuja. (Twitter/Channels Television)
  • From March 31, Nigerians will pay additional charges for paying and withdrawing cash above N500,000
  • The new charges include a 2% processing fee for cash deposit and 3% processing fees for a withdrawal above N500,000. For corporate accounts, it is 5% and 3% for withdrawal and deposit above N3 million.
  • CBN believes the new policy will encourage the use of non-cash channels for transaction.

Nigerian banks to charge a certain percentage from account holders in the country for every deposit and withdrawal above N500,000 for an individual and N3 million for corporate.

This policy takes effective nationwide Tuesday, March 31st, 2020.

The new charges include a 2% processing fee for cash deposit and 3% processing fees for a withdrawal above N500,000. For corporate accounts, it is 5% and 3% for withdrawal and deposit above N3 million.

This is according to a Cashless Policy circular issued by the Central Bank of Nigeria (CBN) last year.

The new charges on depositors and withdrawal had started to those in Lagos, Ogun, Kano, Abia, Anambra, Rivers state, and the FCT since last year.

The policy met strict criticisms from the public in 2019

The details of the additional charges below:

Individual account

Above N500,000

  • Withdrawal/Lodgement limits - 3%
  • Deposits - 2%

Corporate account

Above N500,000

  • Withdrawal/Lodgement limits - 5%
  • Deposits - 3%.

Godwin Emefiele, CBN governor, had explained that only 5 to 10% of bank customers would be affected. He also said the new policy will also encourage the use of non-cash channels for transaction.

While clarifying some of the misconceptions last year, the CBN explained that the charge is only on the amount above the limit. For instance, if you deposit cash of N501,000, N1,000 is over the limit. The bank will charge you 2% of N1,000. The same applies when you deposit more than N5 million.

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