Nigeria plans going cashless in March, 2020

Nigeria plans going cashless in March, 2020

Nigeria plans going cashless in March, 2020

By the last day of March, 2020, Nigeria may have gone totally cashless, according to a statement from the Central Bank of Nigeria (CBN)

This has been long awaited but implemented in pace-meal. But the CBN on Tuesday disclosed that the long-awaited cashless policy takes off nationwide from March 31, 2020.

The apex bank in a statement signed by the Director, Payments System Management Department at the Bank, Sam Okojere also announced a review of the process for merchant settlement in its efforts to further promote a cashless economy and enhance the collection of applicable government revenues.

The statement read: “With effect from September 17, 2019, the CBN has approved for banks to unbundle merchant settlement amounts and charge applicable taxes and duties on individual transactions as stipulated by regulations”.

The apex bank also announced a downward review of the Merchant Service Charge (MSC) from 0.75% capped at N1,200 to 0.50% capped at N1,000.

Meanwhile, the CBN, in a circular to all deposit money bank (DMBs), also announced the commencement of charges on deposits in addition to already existing charges on withdrawals.

According to the circular, the charges, which take effect from Wednesday, September 18, 2019, will attract 3% processing fees for withdrawals and 2% processing fees for lodgments of amounts above N500,000 for individual accounts.

Similarly, corporate accounts will attract 5% processing fees for withdrawals and 3% processing fee for lodgments of amounts above N3,000,000.

The statement, however, disclosed that the charge on deposits shall apply in Lagos, Ogun, Kano, Abia, Anambra, and Rivers States as well as the Federal Capital Territory. It added that the implementation of the cash-less policy would take effect from March 31, 2020.