The Central Bank of Nigeria (CBN) is investigating complaints that some commercial banks are restricting customers’ access to funds held in domiciliary accounts, amid growing concerns over delays and limits on foreign currency withdrawals.
According to reports, several banks have imposed varying restrictions on cash withdrawals from foreign currency accounts. Customers say some institutions limit the amount that can be withdrawn per transaction, while others claim that currencies such as the US dollar and British pound are unavailable.
Sources familiar with the matter said the apex bank plans to intervene by ensuring banks honour legitimate withdrawal requests and provide customers with access to their foreign currency deposits.
Investigations by Financial Vanguard found that the practice exists across several banks, with some customers reporting that only lower denominations are offered, making withdrawals inconvenient. Others claimed banks cited foreign currency shortages or imposed withdrawal caps.
A source close to the CBN said the regulator has received multiple complaints about difficulties accessing funds from domiciliary accounts despite customers meeting all required conditions. The source added that the bank is considering measures to curb practices that may delay or restrict legitimate withdrawals.
The CBN is also expected to issue a circular directing banks to stop practices that unnecessarily hinder withdrawal requests and to review their procedures to ensure customers can access their funds without undue restrictions.
Some banking industry sources alleged that certain institutions may be holding on to foreign currency cash for other uses instead of making it readily available to customers, raising further concerns among domiciliary account holders.
