CACOL Frowns at CBN’s Proposed Charges on Cash Deposits and Withdrawals; says its Burdensome and Untimely

The Centre for Anti-Corruption and Open Leadership, CACOL has condemned the decision of the Central Bank of Nigeria, CBN to reintroduce charges on all cash deposits and withdrawals in bank transactions, describing it as exorbitant, exploitative and anti-poor.

The CBN’s reintroduction of the policy will translate to charging 1.5% to 2% for deposits and withdrawals between 500, 000 and N1 million, beginning from April 1, 2017.

It will also mean that for amounts above N5million, banks will charge individuals 3% for deposits while withdrawals will attract a 7.5% charge.

The Executive Chairman of CACOL, Mr. Debo Adeniran, speaking on the development said there is nothing logical about people losing their hard-earned money because they want to access bank services.

“It is also unethical to impose charges on customers as frequently as being done in Nigeria’s banking sector. At the end, these are just private-interest institutions that does business with customers’ money and astronomical profits as regularly declared in most of their books.

Agreed that they also offer services that are commendable and very important, but this move is rather inconsiderate of the reality of majority of Nigerians’ socio-economic existence; a background that is no doubts very challenging.” He said“

In essence, the CBN is saying that people will lose N 7,500 for depositing N 500,000 and N10, 000 while withdrawing the same amount in the face of the prevailing harsh economic environment added with the seemingly undying recession and austerity in the country.”

“We call on the CBN and the Federal government to do a rethink/review of the proposed charges which will certainly exacerbate charges the sufferings of hapless Nigerians on the altar of further enriching some few private interests.

The government must be told that as a people, Nigerians are already over-taxed, over-billed and over-exploited!”  “The intention to increase bank charges in face of the country’s social economic reality stands condemnable and unacceptable.” He concluded