Money

Nigeria Imposes Additional Charges On Bank Accounts

The Central Bank of Nigeria said on Tuesday that with effect from Wednesday, September 18, 2019, cash deposits and withdrawals from individual bank accounts are to attract addition charges.

This is contained in a circular to all deposit money bank (DMBs), the Director, Payments System Management Department at the CBN, Sam Okojere, explained that henceforth 3 percent processing fees would be paid for withdrawals and 2 percent for deposits of amounts above N500,000 for individual accounts.

Similarly, corporate accounts will attract 5 percent processing fees for withdrawals and 3 percent processing fee for lodgments of amounts above N3 million.

The CBN said the charges would be in addition to already existing charges on withdrawals, and will be aimed at encouraging it’s cashless policy.

Explaining further, the statement said the charge on deposits shall apply in Lagos, Ogun, Kano, Abia, Anambra, and Rivers States as well as the Federal Capital Territory.

As part of measures to promote a cashless economy and enhance the collection of applicable government revenues, the CBN also announced a review of the process for merchant settlement by bank customers.

With the review, which takes effect from Tuesday September 17, the CBN said it gave approval for banks to unbundle merchant settlement amounts and charge applicable taxes and duties on individual transactions as stipulated by regulations.

The CBN announced a downward review of the Merchant Service Charge (MSC) from 0.75 percent capped at N1,200 to 0.50 percent capped at N1,000.

The nationwide implementation of cashless policy will take effect from March 31, 2020, it said.

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