The Central Bank of Nigeria (CBN) has exempted all embassies, diplomatic missions, and multilateral and aid donor agencies in Nigeria from penalties and charges on cash withdrawal and deposits with regards to the cashless Nigeria project.
The CBN explained that Nigeria is a signatory to several treaties which exempt these institutions from all fees and charges in the host country. In a circular signed by D. I. Emokpae, Ag, director, banking and payments system department, CBN, it said as a matter of international practice, sovereign states do not impose financial penalty on other sovereign states.
Part of the circular to all banks, cash in transit, CIT companies, payments system service providers, switches, card acquirers issuers and processors, and the public on ‘Industry Policy on Cash Collection and Lodgment (IITP/C/001) as it Affects Specialized International Institutions’, said, “It has become necessary therefore to extend the exemption on cash withdrawal/deposit to these institutions”.
Earlier, the CBN had excluded microfinance banks (MFBs) and primary mortgage institutions (PMIs) from the policy of cash withdrawal and deposit limit.
According to the CBN, as deposit-taken institutions, they are obliged to honour the request of their customers and other mature obligations. The apex bank further explained that the aggregate withdrawals by depositors of MFBs and PMIs per day could exceed N1 million, thus necessitating those institutions to withdraw over N1 million from their correspondent banks in order to service their customers.