The Central Bank of Nigeria (CBN) is investigating complaints that some commercial banks are restricting customers’ access to cash withdrawals from their domiciliary accounts.
The apex bank is reportedly preparing measures to ensure that banks honour legitimate withdrawal requests and provide customers with the foreign currencies in their accounts, subject to applicable banking requirements.
The development follows growing complaints from customers who say some banks have imposed withdrawal limits, claimed that certain foreign currencies are unavailable or offered only lower denominations when customers request cash withdrawals.
Financial Vanguard reported that checks at some banks in Lagos confirmed that the restrictions exist to varying degrees. Similar complaints have also emerged from customers in other parts of the country.
In some cases, customers requesting amounts such as $5,000 were reportedly told that only $3,000 could be provided. At other branches, customers were reportedly informed that US dollars were unavailable and advised to return at another time.
Some customers also alleged that banks were offering only lower denominations, such as $20 notes, making it difficult for them to complete their requested withdrawals.
A source close to the CBN said the apex bank had received several complaints from members of the public concerning difficulties in withdrawing cash from their domiciliary accounts, even when the requests complied with applicable requirements.
The source said the complaints included practices that could unnecessarily delay or prevent the convenient fulfilment of legitimate withdrawal requests.
CBN MAY ISSUE NEW DIRECTIVE TO BANKS
The CBN is reportedly considering issuing a circular directing commercial banks to stop practices that unnecessarily restrict or delay legitimate cash withdrawals from domiciliary accounts.
The proposed directive would require banks to review their current practices and take immediate steps to ensure that legitimate withdrawal requests are appropriately honoured.
The move is intended to address concerns that some banking practices could create an impression of distress within the banking system.
BANKS ACCUSED OF WITHHOLDING FOREX CASH
Some banking sources have also alleged that certain banks may be trading with foreign currency cash available to them instead of dispensing it to customers who request withdrawals.
Such allegations have heightened concerns among domiciliary account holders, who expect reasonable access to their legitimate foreign currency deposits when making withdrawals in line with banking regulations.
The CBN’s reported intervention comes amid broader efforts to improve transparency and liquidity in Nigeria’s foreign exchange market.
The apex bank has not yet publicly announced the final outcome of the investigation or issued the reported circular to commercial banks.
