CBN Probes Bank Restrictions on Domiciliary Account Withdrawals

The Central Bank of Nigeria (CBN) has launched an investigation into complaints from customers who claim that some commercial banks are restricting their access to foreign currency deposits in domiciliary accounts.

According to reports, some banks have imposed withdrawal limits per transaction or told customers that currencies such as the US dollar and British pound are unavailable. In some cases, customers were offered only lower denominations, including $20 notes, which they alleged was a way of discouraging them from proceeding with their withdrawal requests.

Adebayo Ayomide, a customer of an old-generation bank, reported that he was told by a teller that only $3,000 could be dispensed when he requested to withdraw $5,000. At another new-generation commercial bank, a teller said that US dollars were not currently available but may be released in the future.

The CBN has received several complaints from members of the public and is considering issuing a circular directing banks to stop practices that unnecessarily restrict or delay legitimate cash withdrawal requests. The circular would advise banks to review their existing procedures and take immediate steps to ensure that legitimate withdrawal requests are properly honoured.