CBN Probes Banks Over Restricted Domiciliary Withdrawals

The Central Bank of Nigeria has opened an investigation into commercial banks accused of placing unlawful restrictions on customer withdrawals from domiciliary accounts. The probe follows complaints from customers who could not access their foreign currency funds despite meeting required conditions. The CBN is said to view the barriers as unacceptable and is preparing to act.

What Customers Face

Across Nigeria, customers reported different tactics being used to limit 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 showed 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 would 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.

Suspicion Over Trading

Banking sources suggested some institutions may be choosing to use available foreign currency for trading purposes rather than releasing it to customers. Such transactions generate additional income for the banks, the sources said.

The issue is separate from the CBN's revised naira cash withdrawal policy, which took effect in January 2026. The regulator's published guidance makes clear that naira withdrawal limits do not cover foreign currency accounts. That means there is no regulatory basis for restricting domiciliary account withdrawals. The CBN investigation centres specifically on how banks are handling foreign currency cash requests.

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.

Official FX Rates

Separately, the CBN has published official exchange rates for September 24, 2026. The US dollar buying rate was N1,327.67, the central rate was N1,328.17, and the selling rate was N1,328.67. The pound sterling recorded a selling rate of N1,758.36, with its central rate at N1,757.70. The figures cover a wide range of major international and regional currencies.

What It Means

For Nigerians with domiciliary accounts, the probe could force banks to release legitimate foreign currency withdrawals without delay. If the CBN issues a directive, banks may have to review procedures and remove practices that cause unnecessary delays for customers with valid requests. For businesses and consumers who need dollars or pounds for travel, imports, school fees, or other obligations, improved access could ease pressure and reduce reliance on informal markets. The outcome will also signal how far the regulator will go to protect account holders' access to their own foreign currency.