The Central Bank of Nigeria is investigating complaints that some commercial banks are restricting customers’ access to foreign currency held in domiciliary accounts.
The development was reported by Vanguard on Monday in its newspaper review, with the apex bank expected to take steps to ensure that legitimate withdrawal requests from foreign currency accounts are properly honoured.
According to the report, several customers have complained that banks were imposing partial or total restrictions on cash withdrawals from their foreign currency accounts. Some customers reportedly encountered limits on the amount of dollars or pounds they could withdraw in a single transaction, while others were allegedly told that particular foreign currencies were unavailable.
In some instances, customers were offered only lower denominations. The report cited cases in which customers seeking to withdraw thousands of dollars were allegedly told they could collect significantly smaller amounts or return another day.
The CBN is reportedly concerned that such practices could unnecessarily prevent customers from accessing funds legitimately held in their domiciliary accounts.
A source close to the apex bank told Financial Vanguard that the regulator had received several complaints from members of the public about difficulties in withdrawing cash from domiciliary accounts despite meeting the applicable requirements.
The source said the complaints included practices that could delay or frustrate legitimate withdrawal requests.
The CBN is consequently considering measures to address the issue, including a possible circular directing banks to stop practices that unnecessarily restrict or delay legitimate withdrawals.
The proposed directive would require banks to review their existing procedures and take steps to ensure that legitimate requests are appropriately processed.
The development comes amid ongoing efforts by the CBN to strengthen regulation and transparency in Nigeria’s foreign exchange market. Earlier in 2026, the apex bank introduced operational guidelines governing foreign exchange transactions between licensed Bureau de Change operators and authorised dealer banks, including requirements intended to improve monitoring and compliance.
The current concerns, however, relate specifically to customers’ access to foreign currency deposited in their domiciliary accounts.
Some banking industry sources cited by Financial Vanguard also alleged that certain banks could be using available foreign currency cash for other transactions instead of dispensing it to customers. The allegation has not been established as a general industry practice, and the affected banks have not been publicly identified in the report.
For account holders, the issue has raised questions about the practical accessibility of funds held in foreign currency accounts, particularly at a time when foreign exchange liquidity and cash availability remain important concerns in the banking sector.
The CBN’s reported intervention is therefore expected to clarify banks’ obligations regarding legitimate cash withdrawal requests and distinguish genuine operational constraints from practices that could amount to unnecessary restrictions.
The regulator’s investigation and any subsequent circular will determine the specific measures banks may be required to adopt. Until then, customers with domiciliary accounts are being advised to follow applicable banking procedures when making foreign currency withdrawal requests.
The development underscores the CBN’s continuing role in supervising commercial banks and ensuring that banking practices comply with regulatory requirements while protecting customers’ access to legitimate funds.
