Reported by Simon Daniel Yusuph l Journalist at Weng Global
The Central Bank of Nigeria (CBN) is examining complaints and reported practices involving banks’ restrictions on customers’ access to foreign exchange accounts and related dollar transactions, amid a broader effort to strengthen transparency and compliance in the country’s foreign exchange market.
The reported probe comes as the apex bank continues to revise the rules governing foreign exchange transactions, authorised dealer banks and access to the Nigerian Foreign Exchange Market (NFEM).
The development is significant for individuals and businesses that hold foreign-currency accounts or depend on banks for legitimate dollar payments, transfers and other international transactions.
CBN Tightens Oversight of Banks’ Forex Operations
The CBN has in recent months increased its monitoring of foreign exchange activities across banks and other authorised market participants.
Its 2026 reforms include measures designed to improve price discovery, strengthen transaction reporting and give the regulator greater visibility over foreign exchange dealings.
The central bank’s current framework provides for authorised dealer banks to conduct foreign exchange transactions with customers subject to appropriate documentation, regulatory requirements and anti-money-laundering and counter-terrorism-financing controls.
The CBN’s fourth edition Foreign Exchange Manual, launched in May 2026, forms part of the regulator’s wider effort to establish a more transparent and market-driven foreign exchange system. The Bank has also continued implementing electronic monitoring mechanisms for FX transactions.
Against this background, restrictions imposed by individual banks on customers’ access to legitimate foreign-currency transactions are attracting regulatory attention.
Why Customers’ Forex Access Matters
Foreign-currency accounts, commonly known as domiciliary accounts, are used by Nigerians and businesses for several legitimate purposes, including receiving international payments, holding foreign currency, settling approved international obligations and conducting cross-border transactions.
Restrictions on access can therefore affect customers who need dollars for tuition, medical expenses, travel, imports, business payments and other legitimate obligations.
The issue is particularly sensitive because Nigeria’s foreign exchange market has undergone major changes since 2023, when the CBN moved towards a more market-oriented system and removed several longstanding restrictions.
The International Monetary Fund has previously noted that Nigeria’s exchange-rate reforms eliminated two longstanding exchange restrictions, including the CBN’s previous rationing or prioritisation of access to foreign exchange and restrictions affecting specified import items.
That policy direction makes the treatment of customers by authorised financial institutions an important part of the broader reform process.
CBN Has Been Expanding, Not Narrowing, Formal FX Channels
Recent CBN policies indicate an effort to increase the amount of foreign exchange available through formal channels while strengthening monitoring.
In February 2026, the CBN authorised licensed Bureau de Change operators to purchase foreign exchange from authorised dealer banks through the official market, subject to regulatory requirements.
The policy was designed to improve liquidity and broaden access to legitimate foreign exchange, while requiring banks and BDCs to comply with customer due diligence and reporting obligations.
In July, the CBN introduced the FX BDC Purchase Tracker, a centralised electronic platform intended to give the regulator greater visibility over foreign exchange purchases by BDCs.
The framework requires participating BDCs to provide transaction information and places compliance responsibilities on authorised dealer banks. It also prohibits banks from imposing exclusivity arrangements that prevent a BDC from choosing its preferred authorised dealer.
These measures form part of the CBN’s attempt to reduce opportunities for manipulation, improve transparency and ensure that foreign exchange reaches legitimate end users.
Banks Still Have Compliance Responsibilities
The CBN’s regulatory framework does not mean banks must process every foreign exchange transaction without checks.
Banks remain responsible for carrying out KYC procedures, verifying documentation and monitoring transactions for possible money laundering, fraud, sanctions breaches or other regulatory violations.
The CBN’s recent foreign exchange rules continue to require authorised dealers to ensure that customer transactions are properly documented and compliant with applicable regulations.
The distinction is therefore between legitimate regulatory checks and restrictions that may unnecessarily prevent customers from accessing funds or services to which they are entitled.
Where a bank restricts an account or transaction because of a specific compliance concern, the basis for that action can be materially different from a broad or unexplained restriction affecting customers.
Wider FX Reforms Are Changing Bank Operations
The reported probe comes at a time when the CBN is making several changes to how banks operate in the foreign exchange market.
In August 2026, the central bank removed restrictions that had prevented financial institutions using its Standing Lending Facility from participating in the Nigerian Foreign Exchange Market and primary government securities auctions.
The revised framework was introduced after the CBN reviewed developments in the foreign exchange, money and fixed-income markets. It was intended to give banks and other market participants greater flexibility in managing liquidity.
The CBN has also expanded the infrastructure used to monitor FX transactions.
Its Electronic Foreign Exchange Matching System is intended to improve transparency in interbank FX trading, while the broader regulatory framework places greater emphasis on accurate reporting and market oversight.
Foreign Exchange Liquidity Has Also Improved
The investigation is taking place against a backdrop of improving foreign exchange liquidity compared with the period when severe dollar shortages forced Nigerian banks to impose tighter international transaction limits.
A September 2026 review by Nairametrics found that several major Nigerian banks had increased international transaction limits for customers as foreign exchange conditions improved.
The report cited higher limits at banks including GTCO, FirstBank, Zenith Bank and Stanbic IBTC, although the limits and conditions vary between institutions and products.
The development illustrates the changing environment in Nigeria’s banking sector.
During periods of severe FX scarcity, banks reduced international transaction limits and, in some cases, suspended certain offshore transactions. Improved liquidity has subsequently allowed some lenders to increase their limits.
What the Probe Could Establish
The central issue for the CBN is whether restrictions imposed by banks are consistent with existing foreign exchange regulations and legitimate compliance requirements.
If the regulator finds that a bank has improperly restricted customers’ access to legitimate foreign-currency funds or transactions, the findings could lead to regulatory directives or other measures under the applicable banking framework.
However, the existence of a probe should not itself be interpreted as proof that a bank has violated the law.
Regulatory investigations are intended to establish facts, determine whether rules were breached and identify the appropriate response where violations are confirmed.
The specific banks involved, the number of affected customers and the precise restrictions under examination should therefore be treated cautiously unless formally confirmed by the CBN or the institutions concerned.
What Customers Should Know
Customers experiencing restrictions on foreign-currency accounts should first establish the precise reason given by their bank.
A restriction arising from incomplete documentation, compliance screening or a transaction-specific regulatory requirement is different from an unexplained refusal to provide access to an otherwise legitimate service.
The CBN maintains channels through which customers can submit complaints against financial institutions. Its official contact information includes a dedicated channel for complaints against financial institutions.
Customers should retain relevant transaction records, correspondence, account information and other documentation when raising a complaint.
Banks, meanwhile, are expected to maintain effective compliance systems while ensuring that regulatory controls do not unnecessarily obstruct legitimate banking activity.
Why the Development Matters
The issue goes beyond individual disputes between customers and banks.
Nigeria’s foreign exchange reforms are designed to create a more transparent market in which legitimate demand can be matched with available supply while reducing opportunities for speculation, manipulation and illicit financial activity.
For that system to work, customers need confidence that legitimate foreign-currency balances and transactions will receive predictable treatment.
Banks also need sufficient regulatory clarity to distinguish between transactions that require enhanced scrutiny and ordinary customer activity.
The CBN’s continuing reforms show that the regulator is seeking to balance both objectives: widening formal access to foreign exchange while increasing surveillance and compliance.
What Happens Next
The next important development will be any formal clarification or enforcement action arising from the CBN’s examination of banks’ treatment of customers seeking access to foreign exchange accounts and transactions.
Until the regulator publishes specific findings, individual allegations or reports of restrictions should not be treated as proof of wrongdoing.
The broader direction of policy, however, is clear. The CBN is continuing to build a more electronically monitored and market-oriented foreign exchange system, while requiring banks and other authorised participants to comply with documentation, reporting and customer-protection obligations.
For customers, the outcome of the review could provide greater clarity on what banks may legitimately restrict, what documentation they may require and how disputes over access to foreign-currency services should be handled.
Weng Global – stories beyond borders
Sources
- Central Bank of Nigeria
- Reuters
- Channels Television
- BusinessDay
- Nairametrics
- International Monetary Fund
