Nume Ekeghe
Banks and other financial institutions in Nigeria have reinstated processing fees for cash above N500,000 for individuals and over N3 million for corporates.This followed an end of the Central Bank of Nigeria’s (CBN) temporary suspension of the policy.
During the period of suspension, customers enjoyed a waiver of the usual processing fees.The suspension, which commenced in December 2023, affected deposits surpassing N500,000 for individuals and N5 million for corporate entities, concluded on April 30, 2024.
The original circular imposing the fee, issued in 2019, had set the thresholds for processing charges on cash deposits; however, this initiative was part of a broader regulatory measure aimed at encouraging bank deposits and managing liquidity within the financial system during the cash crunch nationwide.Owing to this development, an email from Sterling Bank to its customers announcing the resumption of charges stated: “We wish to remind you of the temporary suspension of the processing fees on cash deposits above N500,000 for individuals and N3,000,000 for corporates by the Central Bank of Nigeria until Tuesday, April 30th, 2024.
“During this period, you could deposit cash above these thresholds at any Sterling Branch without incurring the usual two per cent and three per cent processing fees respectively for individuals and corporates.
“This is to inform you that effective Wednesday, May 1st, 2024, processing fees have been reintroduced on cash deposits exceeding the thresholds.“This means when you deposit cash above N500,000 (for individuals) and N3,000,000 (for corporates) at any Sterling Branch, the applicable processing fee of two per cent and three per cent will be incurred respectively.”
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