Having a domiciliary account in Nigeria is becoming essential due to its versatility for online transactions. The unpredictability of the exchange rate also makes it crucial to have savings in a stable currency. This guide will help you navigate the best domiciliary accounts available in Nigeria and introduce some alternatives for receiving money faster and easier.
Domiciliary Account Types in Nigeria
A domiciliary account allows you to make and receive payments in foreign currencies. The main types include:
- Personal Domiciliary Account:
- For personal use, it is ideal for freelancers earning in foreign currencies and online buyers.
- It can be a savings or current account.
- Business Domiciliary Account:
- Solely for businesses transacting in foreign currencies.
- Requires a Corporate Affairs Commission (CAC) certificate and other documents.
- Forex Trading Account:
- This is for licensed BDC (Bureau de Change) operators and forex traders.
- Banks offer competitive exchange rates for forex services.
11 Banks to Open the Best Domiciliary Accounts in Nigeria
- Guaranty Trust Bank (GTB)
- Currencies: USD, GBP, EUR.
- Benefits: Deposit as little as $5, cash withdrawals in foreign currency, zero balance maintenance, and international transaction capabilities with linked cards.
- Zenith Bank
- Offers ordinary and cash domiciliary accounts.
- Cash domiciliary accounts restrict transfers but allow other features.
- First Bank
- Currencies: USD, GBP, EUR, CFA.
- Minimum opening balances: $100, £100, €50, CFA10,000.
- United Bank for Africa (UBA)
- Offers Freedom Dom, Dom Advantage, and UBA Kiddies Domiciliary accounts.
- Minimal documentation is required for the Freedom Dom account.
- Fidelity Bank
- Currencies: USD, GBP, EUR.
- Opening balances: $30, €30, £20.
- Access Bank
- Currencies: USD, GBP, EUR, JPY.
- Offers both savings and current domiciliary accounts.
- Stanbic IBTC Bank
- Currencies: USD, GBP, EUR, AUD.
- Easy account opening process.
- Polaris Bank
- Currencies: USD, GBP, EUR.
- Strong industry presence.
- First City Monument Bank (FCMB)
- Offers savings and current domiciliary accounts.
- There is no minimum operating balance, but it has opening balance requirements.
- Union Bank
- Offers savings, current, and UnionAce domiciliary accounts.
- UnionAce provides 4% annual earnings on dollar deposits.
- Sterling Bank
- Offers inflow domestic and cash deposit domiciliary accounts.
- Facilitates faster transactions.
Requirements for Opening a Domiciliary Account in Nigeria
- Filled and signed the account opening form.
- Valid ID (international passport, voter’s card, driver’s license, or national identity card).
- The account opening balance (varies by bank) is as follows:
- Passport photographs.
- Two completed reference forms from current account holders.
- Bank verification number (BVN).
- Residence permit (for non-Nigerians).
- Public utility receipt (issued within the last three months).
How to Open a Domiciliary Account in Nigeria
- Fill out the Form: Complete the domiciliary account opening form at a bank or online.
- Provide Required Documents: Submit the necessary documents, including ID, passport photos, and reference forms.
- Joint Nominee Signatory Option: Choose a relative or close friend as a signatory if desired.
- Verification and Approval: The bank will verify the information and open the account.
- Request a USD Debit Card: Depending on the account type, request a USD debit card during the process.
Considerations Before Opening a Domiciliary Account
- Accessibility: Choose a bank with branches easily accessible to you.
- Transaction Charges: Be aware of foreign transaction charges.
- Security of Banking App: Ensure the bank’s app is reliable for international transactions.
- Customer Service: Test the bank’s customer service responsiveness.
- Type of Account: Consider the currencies offered and the purpose of the account.
- Account Opening Procedure: Some banks have quicker processes than others.
Limitations on the Use of Domiciliary Accounts in Nigeria
- The main restriction is a cash deposit limit of $10,000 per day, set by the Central Bank of Nigeria (CBN).
- More freedom and flexibility exist for foreign transactions now.
Domiciliary Account Alternatives in Nigeria
- Cross-Border Payment Fintechs: Options like Chipper and Grey offer faster and easier money transfers.
Domiciliary Account Charges
- The CBN sets a benchmark of $10 or 0.05%, whichever is lower, for withdrawals. Banks may vary in their charges and commissions.
Bottom Line
Opening a domiciliary account with a commercial bank in Nigeria offers numerous benefits for international transactions. This guide has provided detailed information to help you choose the best domiciliary account for your needs. Take advantage of the opportunities these accounts offer to manage foreign currency transactions seamlessly.
Other Dom Account Options
How to Open a Domiciliary Account With UBA
How To Open a Domiciliary Account With GTBank
How to Open a Domiciliary Account With FCMB
