The Central Bank of Nigeria (CBN) is investigating complaints that some commercial banks are restricting customers’ access to foreign currency in their domiciliary accounts.
The investigation follows reports that some banks have introduced limits on the amount of US dollars and other foreign currencies customers can withdraw over the counter, while others reportedly tell customers that foreign currencies are unavailable.
Financial Vanguard reported that the apex bank is preparing measures to compel banks to honour legitimate withdrawal requests from customers with domiciliary accounts.
According to the report, customers have encountered different restrictions, including limits on withdrawals, shortages of certain denominations and requests to return to the bank at a later date.
In some cases, customers seeking to withdraw $5,000 were reportedly offered lower amounts, while some banks allegedly limited over-the-counter dollar withdrawals to $1,000.
A source close to the CBN said the regulator had received complaints from members of the public about difficulties accessing cash from their domiciliary accounts despite meeting applicable requirements.
The source said the complaints included practices that could unnecessarily delay or prevent legitimate withdrawal requests.
The CBN is reportedly considering issuing a circular directing commercial banks to stop practices that unnecessarily restrict or delay legitimate cash withdrawals.
Banks may also be required to review their existing procedures and ensure that valid withdrawal requests are properly honoured.
The development has raised concerns among customers who keep foreign currency deposits with commercial banks and expect access to their funds when they meet the relevant account requirements.
Financial Vanguard also reported allegations from banking sources that some banks could be holding foreign currency cash for other transactions rather than dispensing it to customers. The allegation has not been independently established.
The reported investigation comes amid the CBN’s broader efforts to strengthen regulation and transparency in Nigeria’s foreign exchange market.
The apex bank has yet to publicly announce the reported circular or disclose specific sanctions against any bank in connection with the complaints.
