The Central Bank of Nigeria is investigating complaints that some commercial banks are restricting customers’ access to foreign currency held in their domiciliary accounts.
A source close to the apex bank told Financial Vanguard that the CBN had 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.
According to the source, the complaints include reports of practices and arrangements that may impede the timely and convenient fulfilment of legitimate withdrawal requests.
Financial Vanguard learnt that the apex bank would intervene on the side of customers by compelling banks to honour all legitimate withdrawal requests from domiciliary accounts and dispense foreign currencies as requested by account holders.
Several bank customers have told Financial Vanguard that various banks have adopted different tactics to impose total or partial restrictions on cash withdrawals from their foreign currency accounts. A visit to some banks in Lagos confirmed that the practice exists to varying degrees.
While some banks place limits on the amount customers can withdraw per transaction, others declare that foreign currencies, particularly US dollars and British pounds, are unavailable. A few other banks offer to dispense only lower denominations, such as $20 notes, a practice some customers said was aimed at discouraging account holders from proceeding with their withdrawal requests.
The CBN is expected to issue a circular to commercial banks directing them to desist from practices that unnecessarily restrict or delay legitimate cash withdrawal requests, which create an impression of banking distress.
