The Central Bank of Nigeria (CBN) is looking into complaints that some commercial banks are restricting customers’ access to foreign currencies held in their domiciliary accounts.
The development comes after customers across different parts of the country reported difficulties withdrawing US dollars, British pounds and other foreign currencies from their accounts.
Some customers alleged that banks had introduced withdrawal limits, while others said they were told that particular currencies were unavailable when they attempted to make cash withdrawals.
In some cases, customers said banks offered only lower denominations, such as $20 notes, which they believed made it difficult to complete their intended withdrawals.
A number of customers also claimed that the restrictions varied from one bank to another, with some institutions reportedly imposing limits on the amount that could be withdrawn over the counter.
One customer who attempted to withdraw $5,000 from an old-generation bank was reportedly told that only $3,000 could be made available. The teller also expressed uncertainty about whether the customer would be able to withdraw the full $3,000 even if he returned the following day.
At another bank, a customer requesting US dollars was reportedly told: “US dollars are not currently available, but you can keep following up. Maybe you will be lucky next time.”
Another customer who encountered a similar situation alleged that some banks could be reserving foreign currency for preferred customers, claiming that someone he knew had recently withdrawn $4,000 from the same institution.
At another bank in Victoria Island, Lagos, a customer said he had successfully withdrawn $1,000 and claimed that the amount was the maximum available for over-the-counter dollar withdrawals at the branch.
The complaints have now attracted the attention of the CBN, which is reportedly examining the practices of banks and considering measures to ensure customers can access legitimate funds in their domiciliary accounts.
A source familiar with the matter said the apex bank had received several complaints from members of the public concerning difficulties in withdrawing cash from domiciliary accounts despite meeting the applicable requirements.
“The Central Bank of Nigeria has received several complaints from the general public alleging difficulties in withdrawing cash from their domiciliary accounts, even when withdrawals are made in accordance with the applicable requirements for the operation of their accounts,” the source said.
According to the source, some of the complaints involve practices that could unnecessarily delay or prevent customers from completing legitimate withdrawal requests.
The source said the CBN was considering issuing a circular directing banks to stop practices that unnecessarily restrict or delay legitimate cash withdrawals.
Banks would also reportedly be asked to review their existing procedures and ensure that legitimate withdrawal requests are properly handled.
The CBN’s intervention could therefore lead to closer scrutiny of how banks manage foreign currency cash and the conditions attached to withdrawals from domiciliary accounts.
Meanwhile, some banking industry sources have raised another concern, alleging that certain banks could be using available foreign currency cash for forex-related transactions rather than making it available to customers seeking withdrawals.
The allegation has not been established as a general practice across the banking sector, but it has added to concerns among domiciliary account holders who expect reasonable access to their legitimate foreign currency deposits.
The situation comes as customers continue to demand greater clarity from banks over the availability of foreign currency cash and the conditions governing withdrawals from their accounts.
If the proposed CBN intervention is implemented, banks may face increased pressure to ensure that customers who meet the applicable requirements can access their foreign currency deposits without unnecessary restrictions or delays.
