Menu

The Central Bank of Nigeria has directed commercial banks to suspend the nationwide rollout of its cashless policy, according to a circular published on Friday. The apex bank did not provide any reasons for the suspension of the policy.

In March this year, the CBN had announced that it would embark on a nationwide implementation of its cashless policy, which had been in force in only six states – Lagos, Ogun, Kano, Abia, Anambra, and Rivers – and the Federal Capital Territory. The CBN also announced that it had reintroduced charges on cash transactions, imposing new rates for deposits and withdrawals nationwide. The apex bank had planned a phased rollout of the policy: 10 states from April 1st, another batch of 10 states from May 1st, and the last group of 10 ten states from August 1st.

“Please note that the new withdrawal and deposit processing fees charges above the threshold, as contained in the circulars referenced above, are hereby suspended until further notice. The position of the policy shall now revert to the status quo ante,” the apex bank said. “For further clarification, the existing policy prior to the announcement of the new policy as earlier implemented in Lagos, Ogun, Kano, Abia, Anambra, Rivers states and the FCT shall remain in force.”

The CBN directed banks to revert to the old charges of 3 percent processing fees for individual withdrawals above N500,000, and 5 percent processing fees for corporate withdrawals above N3 million.

“The new charges already applied effective 1st April, 2017 as contained in the circulars in reference above, should be reversed and the old charges as stated above should be applied. All necessary refunds should be made accordingly,” the apex bank.