Report: CBN Investigates Banks Over Domiciliary Account Withdrawal Restrictions
- The CBN launched an investigation into banks accused of blocking customers from accessing their foreign currency accounts
- Customers across Lagos reported being turned away or offered limited dollar amounts despite having legitimate funds in their domiciliary accounts
- Banking sources said some financial institutions may be trading available foreign currency cash rather than releasing it to customers
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Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Central Bank of Nigeria (CBN) has opened an investigation into commercial banks accused of placing unlawful restrictions on customer withdrawals from domiciliary accounts.
According to Vanguard, the apex bank received complaints from customers who were unable to access their own foreign currency funds despite satisfying the required conditions.
Source: UGC
The CBN reportedly views such barriers as unacceptable and is preparing to act.
A directive could be issued soon requiring banks to review their procedures and remove any practices that cause unnecessary delays for customers with legitimate withdrawal requests, the source said.
How banks are blocking access
Customers across Nigeria described a range of tactics being used to limit their access to cash. Some were told that US dollars or British pounds were simply not available.
Others were offered only smaller denominations, such as $20 notes, making larger withdrawals cumbersome.
Visits to bank branches in Lagos turned up varied levels of restriction. At one branch, a customer requesting $5,000 was told only $3,000 could be processed, with no clarity on when the rest might be available.
At another, a teller told a customer to return later and check for dollar availability, even as that same customer said a friend had recently collected $4,000 from the same institution.
In Victoria Island, Lagos, one customer was told the maximum available over the counter at the time was $1,000.
Banks accused of trading foreign currency for profit
Banking sources quoted suggested some institutions may be choosing to use available foreign currency for trading purposes rather than releasing it to customers.
Such transactions, the sources said, generate additional income for the banks.
The issue is separate from the CBN's revised naira cash withdrawal policy, which took effect in January 2026.
Source: Getty Images
The regulator's own published guidance makes clear that naira withdrawal limits do not cover foreign currency accounts, meaning there is no regulatory basis for restricting domiciliary account withdrawals.
The CBN investigation centres specifically on how banks are handling those foreign currency cash requests.
CBN announces new exchange rates for dollar, pound, euro
Earlier, Legit.ng reported that the Central Bank of Nigeria (CBN) has published its official exchange rates for September 24, 2026, putting the US dollar's buying rate at N1,327.67, central rate at N1,328.17, and selling rate at N1,328.67.
The figures come from the apex bank's latest exchange rate data, which covers a wide range of major international and regional currencies.
The pound sterling recorded a selling rate of N1,758.36, with its central rate at N1,757.70.
Source: Legit.ng
