This Day (Lagos)

25 June 2014

Nigeria: Cashless Policy - CBN Defers Charges in 30 States

The Central Bank of Nigeria (CBN) Tuesday announced the deferment of charges for individuals and corporate account holders who wish to withdraw cash above the prescribed limits in the 30 states it plans to extend the policy to from July 1, 2014.

The charges on withdrawals for both individual and corporate account holders will now take effect in the remaining 30 States from July 1, 2015. The central bank in a statement that the waiver is to allow ample time for the deployment of adequate infrastructure needed to support the policy.

It noted that having successfully completed phase one and two of the policy in six pilot states as well as the federal capital territory, the phase three of the initiative would take off as planned.

Under the cashless policy which is aimed at reducing the dominance of cash in the system, the CBN had pegged the daily cumulative cash withdrawal/deposit limit for individual accounts at N500,000 per day and N3 million per day for corporate accounts.

But while unveiling his agenda for the central bank, the CBN Governor, Mr. Godwin Emefiele had abolished charges for cash lodgment.

Nevertheless, cash withdrawals above the limit for individual accounts attract a three per cent charge while corporate account holders are being charged five per cent.

"The management of the Central Bank of Nigeria hereby notifies all stakeholders and the general public that phase three of the policy's implementation will commence as scheduled on July 1, 2014, in the remaining 30 States of the Federation.

"However, as was the case in the pilot states, a one-year waiver has been granted on the application of withdrawal charges in the 30 states slated for rollout in phase three," the CBN explained.

Furthermore, it stressed that withdrawal charges would continue to apply to transactions above the specified limits in Abia, Anambra, Lagos, Ogun, Kano, Rivers States and the FCT.

It added: "Charges on withdrawals for both individual and corporate account holders will only take effect in the 30 States from July 1, 2015.

"This waiver is to allow ample time for the deployment of adequate infrastructure needed to support the policy, as well as additional sensitisation of various stakeholders on the merits of the policy. All financial institutions and the general public should please take note."

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