The Central Bank of Nigeria (CBN) is investigating some commercial banks over reported restrictions on customers seeking to withdraw foreign currency from their domiciliary accounts.
The development follows complaints from account holders who said they were facing difficulties accessing dollars, pounds and other foreign currencies despite having sufficient balances in their accounts.
The investigation comes as the apex bank seeks to determine whether some of the restrictions imposed by banks are justified or amount to unnecessary barriers to customers accessing their funds.
Sources familiar with the matter said the CBN had received complaints from customers over withdrawal limits, unavailable currencies and difficulties obtaining requested denominations.
In some cases, customers were reportedly told they could only withdraw part of the amount requested, while others were informed that the required currency was unavailable at the branch.
One reported case involved a customer seeking to withdraw $5,000 who was allegedly told that only $3,000 could be made available.
The situation has raised concerns among domiciliary account holders, particularly those who rely on foreign currency deposits for legitimate personal and business transactions.
Domiciliary accounts allow customers to hold foreign currencies such as US dollars, British pounds and euros, making access to the funds an important part of their banking relationship.
However, the reported restrictions have created questions over why customers with sufficient balances are sometimes unable to obtain the foreign currency they request.
DDM News understands that the CBN is considering measures to ensure that legitimate withdrawal requests are not unnecessarily delayed or restricted by banks.
The apex bank may also issue further guidance to commercial banks on how domiciliary account withdrawals should be handled.
For banks, foreign currency availability can vary between branches, particularly when customers request large amounts of physical cash.
However, the CBN’s intervention suggests that the regulator wants clearer boundaries between genuine liquidity challenges and practices that may unnecessarily limit customers’ access to their funds.
The development comes amid continued regulatory efforts by the CBN to strengthen transparency and accountability in Nigeria’s foreign exchange market.
The outcome of the investigation could result in clearer instructions for banks and greater certainty for customers holding foreign currency accounts.
For now, the focus remains on determining the extent of the reported restrictions and whether banks are complying with the rules governing access to legitimate domiciliary account funds.
