The Central Bank of Nigeria (CBN) has begun investigating complaints that some commercial banks are restricting customers from accessing cash in their domiciliary accounts.
The apex bank is expected to take steps to ensure that customers with legitimate withdrawal requests can access their foreign currency deposits in line with applicable banking regulations.
The development follows complaints from several bank customers who reported difficulties withdrawing foreign currencies, particularly US dollars and British pounds, from their domiciliary accounts.
The reports indicated that some banks had adopted various measures, including imposing limits on the amount of foreign currency customers could withdraw over the counter and informing customers that certain currencies were unavailable.
Some banks were also reportedly offering customers only lower denominations of foreign currencies. In some instances, account holders were allegedly offered $20 notes, a situation some customers believed could discourage them from completing their withdrawal requests.
A customer of an old-generation bank reportedly requested to withdraw $5,000 but was informed that the bank could only provide $3,000. The teller also reportedly expressed uncertainty over whether the customer would be able to obtain the full $3,000 if he returned the following day.
At another new-generation commercial bank, a customer seeking to withdraw US dollars was reportedly told that the currency was unavailable and advised to check back later.
However, another customer at the same bank reportedly said he had successfully withdrawn $1,000. Similarly, a customer at another bank in Victoria Island, Lagos, said he had collected $1,000 but claimed that the amount represented the maximum that could be withdrawn over the counter at the bank.
The customer attributed the restriction to foreign exchange scarcity. The reported difficulties have raised concerns among domiciliary account holders, particularly customers who expect reasonable access to their legitimate foreign currency deposits when they meet the applicable withdrawal requirements.
CBN Begins Intervention. A source close to the CBN said that the apex bank was aware of the complaints and was working on measures to address the situation.
According to the source, the CBN had received several complaints from members of the public alleging difficulties in withdrawing cash from domiciliary accounts, including instances where customers claimed their requests complied with existing requirements.
The source said the complaints included allegations of practices that could unnecessarily delay or prevent the timely processing of legitimate foreign currency withdrawal requests.
The CBN may consequently issue a circular directing banks to discontinue practices that unnecessarily restrict or delay customers seeking to withdraw legitimate foreign currency deposits.
The proposed directive is also expected to require banks to review their existing procedures and take immediate steps to ensure that eligible withdrawal requests are properly processed.
Banks Accused of Withholding Forex Cash. The report also cited banking sources who alleged that some banks could be retaining available foreign currency cash rather than making it available to customers seeking withdrawals.
According to the sources, some banks may be deploying available foreign currency cash for other transactions that could generate additional earnings instead of releasing the funds to customers requesting withdrawals.
The allegation has further heightened concerns among domiciliary account holders, many of whom expect access to their foreign currency deposits when they meet the relevant banking requirements.
The CBN's intervention is therefore expected to focus on ensuring that commercial banks comply with applicable regulations and do not unnecessarily restrict customers from accessing legitimate foreign currency withdrawals.
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