Business
CBN Extends Suspension Of Cash Deposit Fees
In an effort to ease financial transactions, the Central Bank of Nigeria (CBN) has extended the suspension of cash deposit processing fees from September 30, 2024, to March 31, 2025.
In a letter addressed to banks and financial institutions, signed by the Director of Banking Supervision, Adetona Adedeji, the CBN referenced its previous directive, which had initially suspended the fees until September 30, 2024.
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The suspension applies to cash deposits exceeding N500,000 for individuals and N3 million for corporate accounts.
Hitherto, individual accounts are charged a 2% processing fee, while corporate accounts incur a 3% fee on excess deposits.
The CBN reiterated that all regulated financial institutions are required to continue accepting cash deposits from the public without any charges during this extended period.
The letter reads, “Further to our letter dated May 6, 2024, referenced BSD/DIR/PUB/LAB/016/023, the Central Bank of Nigeria (CBN) hereby extends the suspension of processing charges on cash deposits above N500,000 for individuals and N3,000,000 for corporates. The previous suspension, set to expire on September 30, 2024, has now been extended until March 31, 2025.”
“This suspension pertains to the 2% and 3% fees outlined in the ‘Guide to Charges by Banks, Other Financial Institutions and Non-Bank Financial Institutions,’ issued on December 20, 2019.”
Recall that in 2019, the Central Bank of Nigeria (CBN) unveiled a plan to introduce fees on cash deposits and withdrawals, set to take effect from September 19, 2019.
The bank explained in a publicly shared circular that the move was part of efforts to limit cash usage and improve the collection of government revenues.
At first, these charges were only applicable to customers in Lagos, Ogun, Kano, Abia, Anambra, Rivers, and the Federal Capital Territory (FCT).
The CBN also outlined that the policy would be rolled out nationwide by March 31, 2020, as part of its cash-less initiative.
In December 2023, the CBN instructed banks and other financial institutions to halt the application of fees on large cash deposits.
This temporary suspension was originally planned to last until September 30, 2024.
Business
Dangote, Gates Headline Relaunch Of Capital Campaign For Africa
The Capital Campaign for the Africa Center was relaunched at the sidelines of the ongoing United Nations General Assembly (UNGA) in New York on Wednesday.
To highlight its importance, Africa’s richest man, President Dangote Group, Alh Aliko Dangote and Co-Chair, Bill and Melinda Gates Foundation, Bill Gates led other notable captains of industry from Africa and the United States of America (USA) graced the event.
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Prominent among those spotted therein include, Chairman, Oriental Energy Resources, Mohammed Indimi; Group Executive Director, Commercial Operations, Dangote Industries Limited (DIL), Fatima Aliko Dangote and Co-Chair, Africa Center, Chelsea Clinton.
Also the elite group are, President/Chief Executive Officer, DIL, Aliko Dangote; Co-Chair, the Bill and Melinda Gates Foundation, Bill Gates; Commissioner for Cultural Affairs, New York City, Laurie Cumbo and Chairman, Afreximbank, Benedict Oramah.
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JUST IN: CBN Pushes Economy Harder With Steep Interest Rate Hike To 27.25%
The Central Bank of Nigeria’s Monetary Policy Committee has raised the benchmark interest rate to 27.25 percent, marking a 50 basis point increase from the previous rate of 26.75 percent set in July 2024.
Announcing the decision after the committee’s fifth meeting of the year at the CBN headquarters in Abuja, Governor Olayemi Cardoso said the move to tighten monetary policy was unanimously supported by all members.
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The monetary policy rate, which serves as the foundation for all other interest rates in the economy, has now seen an 8.5 percent increase under the current leadership, which took office a year ago.
However, the MPC maintained the asymmetric corridor around the MPR at +500 to -100 basis points.
It also raised the Cash Reserve Ratio for deposit money banks by 500 basis points to 50 percent and for merchant banks by 200 basis points to 16 percent, up from 14 percent, while keeping the liquidity ratio unchanged at 30 percent.
Cardoso said, “The committee was unanimous in its decision to further tighten policy and thus decided as follows, one: raise the MPR to 27.25 per cent.
“The MPC decided to retain the asymmetric corridor around the MPR at plus 500 to minus 100 basis points. It also raised the Cash Reserve Ratio of deposit Money banks by 500 basis points to 50 per cent from 45 per cent and merchant banks by 200 basis points to 16 per cent from 14 per cent and retain the liquidity ratio at 30 per cent.”
More to follow…………