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Nigerians to pay more than N10,000 additional charges for paying and withdrawing cash above N500,000

imageCentral Bank Of Nigeria Governor, Godwin Emefiele

Nigeria’s Central Bank has approved additional charges on deposits and withdrawals in the country.

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, effective September 18, 2019.

imagePresident Muhammadu Buhari with CBN Governor, Godwin Emefiele [TheCable]

The details of the additional charges below:

Individual account

Above N500,000

Corporate account

Above N500,000

imageCBN new charges on cashless policy

What does this mean

With this policy, every deposit above N500,000 on individual’s account will attract a 2% fee. For instance, if you pay N510,000 into your savings account, the bank will charge you N10,020 for the transaction.

Withdrawals attract higher fees of 3% and 5% for individual and corporate accounts respectively.

Sam C. Okojere, Director, Payments System Management Department said the nationwide implementation of the cashless policy will take effect from March 31, 2020.

CBN Cashless policy

Business Insider SSA understands that this policy is in continuation of CBN’s cashless policy. In 2012, the apex bank introduced the policy on cash-based transactions which stipulates a cash handling charge on daily cash withdrawals that exceed N500,000 for Individuals and N3,000,000 for Corporate bodies.

According to the CBN, the new policy on cash-based transactions (withdrawals) in banks, aims at reducing (NOT ELIMINATING) the amount of physical cash (coins and notes) circulating in the economy and encouraging more electronic-based transactions (payments for goods, services, transfers, etc.)

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