Withdrawals and deposits of cash in Nigeria will now attract processing fees payable by individuals or corporate owners of bank accounts involved.
Nigeria’s central bank said the measure was put in place to encourage its cashless policy and will take effect on September 18 in Lagos, Kano, Rivers, Ogun, Anambra, Abia and Nigeria’s capital city Abuja.
Cash withdrawal by an individual from N500, 000 and above will attract 3% of the amount withdrawn while, a cash deposit of N500, 000 and above will attract 2% of the amount to be deposited.
5% processing fee will be levied on cash withdrawals from N3 million and above from a corporate account while cash deposits attract 3% processing fee.
“This is important because the federal government only retains 15% of the VAT – 85% is actually for the states and local government,” Finance Minister Zainab Ahmed said on Thursday.
“The states need additional revenue to be able to meet the obligations of the minimum wage,” she added.
The Central Bank of Nigeria on Tuesday said that the nationwide implementation of the cashless policy would take effect from March 31st, 2020.