Nigeria’s cashless policy goes nationwide

By Kokumo Goodie, Lagos, Nigeria

The Central Bank of Nigeria (CBN) has extended its cashless policy to the remaining 30 states of the nation having recorded success in the six states where it ran pilot schemes.

In a circular released on its website, the apex bank said the decision was made at the 493rd bankers committee meeting held February 8.

It also agreed that from April, banks will charge N4million on every N40million cash withdrawal.

 “Please be informed that the bankers committee at its 493rd meeting held on February 8 reviewed the cashless policy charges on withdrawal and deposit and decided that the policy be extended to the 30 remaining states of the federation,” the circular read.

For individuals, deposits ranging from N500,000 to N1million will attract a 1.5 per cent charge, while withdrawals within the range would attract two per cent charge.

Deposits of amounts above N1million and N5million will attract two per cent and withdrawals will attract three per cent charge. Deposits and withdrawals above N5million will attract three per cent and 7.5 per cent charge respectively. In the corporate category, deposits and withdrawals below N3m will not attract charges.

Deposits and withdrawals between N3million and N10million will attract two per cent and five per cent respectively, while deposits and withdrawals between N10million and N40million will attract three per cent and 7.5 per cent respectively. Deposits and withdrawals above N40million will attract five per cent and 10 per cent respectively.

CBN said income generated from the charges would be shared between it and the banks in a ratio of 40:60.

It said exemptions would however be available only for the government, embassies, diplomatic missions and aid donor agencies.

“The new charges would take effect from April 1 in the existing cashless states (Lagos, Ogun, Kano, Abia, Anambra, Rivers and the FCT). The policy shall be implemented with the charges taking effect on May 1 in the following states: Bauchi, Bayelsa, Delta, Enugu, Gombe, Imo, Kaduna, Ondo, Osun and Plateau,” the circular added.

“The policy shall be implemented with the charges taking effect on August 1 in Edo, Katsina, Jigawa, Niger, Oyo, Adamawa, Akwa-Ibom, Ebonyi, Taraba and Nasarawa. The policy shall be implemented with the charges taking effect on October 1 in Borno, Benue, Ekiti, Cross-River, Kebbi, Kogi, Kwara, Yobe, Sokoto and Zamfara,” the apex bank explained.

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