The Central Bank of Nigeria (CBN) has reactivated fees for cash deposits exceeding N500,000 for both individual and corporate account holders, marking a resurgence in processing charges after a suspension period.

The decision, effective May 1, comes after over four months of the apex bank's suspension of processing fees on cash deposits surpassing N500,000, which was set to expire on April 30, 2024.

In a circular addressed to customers, First Bank Nigeria (FBN) notified of the revised processing fee structure, where individuals face a 2 percent charge on deposits above N500,000, while corporate account holders encounter a 3 percent fee on deposits surpassing N3 million.

"We write to inform you that, effective 1 May 2024, our processing fees structure on cash deposits has been adjusted in accordance with regulatory requirements," FBN stated.

This reinstatement follows the CBN's directive on September 18, 2019, which introduced processing fees of 3 percent for withdrawals and 2 percent for deposits exceeding N500,000 for individual accounts, aimed at promoting cashless transactions.

Additionally, banks were instructed to impose 5 percent processing fees on withdrawals and 3 percent on deposits exceeding N3 million for corporate account holders.