May 28, 2022

SB-Accounting

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New CBN Cashless Policy To Begin on April in Lagos, Ogun, Orders

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The central Bank of Nigeria is set to begin a new era of cashless policy in Nigeria. Beginning from April, the new policy will kick start in Lagos, Ogun, Abia, Kano, Anambra, Rivers and the Federal Capital Territory. Other states will start implementing this policy on a specified date this year as stiputed by the Bank.

Bayelsa, Bauchi, Delta, Enugu, Gombe, Imo, Kaduna, Ondo, Osun and Plateau will resume implementation on the 1st of May; Edo, Kastina, Jigawa, Niger, Oyo, Adamawa, Akwa-Ibom, Ebonyi, Taraba and Nasarawa 1st of August; while Borno, Benue, Ekiti, Cross-River, Kebbi, Kogi, Kwara, Yobe, Sokoto and Zamfara to commence cashless policy on the 1st of October. With this all states in Nigeria will fully comply with the CBN cashless policy.

In addition, the CBN has reviewed the charges payable on cash deposits and withdrawer. Effective as in above date, deposits and withdrawers of amount below N500,000 of an individual account will not attract charges from Deposit Money Banks. However, between N500,000 to N1m will attract 1.5% on deposit and 2% on withdrawer. Between N1m to N2m will attract 2% on deposit and 3% on withdrawer. More to it, above N5m will pay charges of 3% on deposit and 7.5% on withdrawer.

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For corporate entities, there will be no charges on deposits and withdrawer less than or equal to N3m. But above N3m to N10m will pay charges of 2% and 5% on deposits and withdrawer respectively. Above N10m to N40m will be charged 2% and 7.5% on deposits and  withdrawer respectively. Moreso, above N40m will pay charges of 5% and 10% deposits and withdrawer respectively.

CBN makes exemptions to this policy for certain MDAs and microfinance banks. “Revenue generating accounts of the Federal, State and Local Governments (lodgements only), Embassies, Diplomatic Missions, Multilateral Agencies, Aid Donor Agencies in Nigeria, Ministries, Departments and Agencies of Government (revenue collection only), Mobile Money Operators (pool accounts only), Microfinance Banks (MFBs) and Primary Mortgage Institutions (PMIs) accounts with Deposit Money Banks (DMBs) are free from the above policy.

This policy means that Internet Banking, Mobile App, ATMs, POS and web services will remain available for transactions at all banks in Nigeria at all times. Therefore, withdrawers less than N40,000 should be done within the media aforementioned.

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