So you want to make money online in Nigeria, but how do you receive your dollars in Nigeria? That’s where a domiciliary account comes in. How do you go about opening a domiciliary account in Nigeria, and which is the best domiciliary account enabled bank in Nigeria? This article shows you step by step the information you need on these subjects.
- What’s a domiciliary account?
- Why do you need a domiciliary account in Nigeria?
- The best commercial banks to open a domiciliary account within Nigeria
- What you need to open a domiciliary account in Nigeria
- Procedure for opening a domiciliary account in Nigeria
- Advantages of operating a domiciliary account in Nigeria
- The best domiciliary account enabled bank in Nigeria
- Conclusion
What’s a domiciliary account?
A domiciliary account is an account you open and maintain in Nigeria, but with a foreign currency like US dollar or British pounds. This means that you can do transactions on the account, just like a normal savings bank account, but in foreign currency.
You can easily open a domiciliary account with any of the commercial banks in Nigeria, though not all are beginner friendly. Some require more challenging requirements, while some are relatively easy compared to others.
Why do you need a domiciliary account in Nigeria?
Domiciliary accounts allow you to receive and transact in foreign currencies, including pounds, US dollars, and euros. You can be able to do this easily through the regular banking channels such as mobile app, online banking and USSD.
A domiciliary account is also known as a dollar account. It offers all the services associated with having a regular savings or current account, except that the currency is in either one of the foreign currencies.
You need a domiciliary account in Nigeria if you receive a foreign currency consistently, and want to exchange the money at black market rates, which is much higher than official exchange rate.
For instance, if you receive $500 dollars, you could withdraw it through your domiciliary account and exchange it for up to N470 to a dollar, which comes to N235,000. However, if you are withdrawing it through your usual Naira savings account, the bank will automatically exchange it for you at the official rate which is around N395 to a dollar. What you will get is N197,500.
Obviously, without a domiciliary account, you will lose much of your money. So you don’t want that to happen. That’s why you need one.
The best commercial banks to open a domiciliary account within Nigeria
Here’s a list of your best options when it comes to opening a domiciliary account in Nigeria.
- Guaranty Trust Bank (GTB) the best domiciliary account enabled bank in Nigeria.
- Access Bank
- Zenith Bank
- Fidelity Bank
- United Bank for Africa (UBA)
- First Bank
- Union Bank
Practically all banks in Nigeria offer this service, but these are the ones that come to mind readily, with easier requirements. GTB doesn’t require an opening deposit or operating balance. Some banks like Access bank require a deposit before the account is opened, though that can be waived.
What you need to open a domiciliary account in Nigeria
- Account opening form (get this from the bank and fill it)
- Signature card
- Passport photos (usually 2)
- At least 2 references if opening a current account
- Verification documents such as a power bill or house rent receipt
- Valid means of identity (NIN or Driver’s License or International Passport)
- Resident permit (for non-Nigerians)
- Existing savings or current account with the bank (you will be required to open this first)
Procedure for opening a domiciliary account in Nigeria
Walk into any of the banks (we recommend either GTB or Access Bank, though Zenith Bank is also good) and pick an account opening form. Fill in all the required information and return same with the other requirements to the bank.
Once you submit the documents, within 3 days your account is ready to receive money. I remember when I wanted to open a domiciliary account with GTB. All I did was let the customer service know about it. It was easier since I already owned a current account with the bank. The account was ready in a matter of hours, and I could access it on the GTB GAPS mobile app.
Advantages of operating a domiciliary account in Nigeria
- It allows you to receive your money in USD or any other foreign currency
- It is critical to your online business ventures
- You can pay for goods and services online in dollars
- You are able to exchange at black market rates
The best domiciliary account enabled bank in Nigeria
The winner is… GTB! If you want to get your domiciliary account in no time at all, and with no opening deposit, then GTB is the bank to go to. Besides, they are a bank that has consistently leveraged technology for better service to its numerous customers.
Some banks require that you make a deposit of $50 or even $1000 before you can open one. GTB doesn’t demand for this, which makes it the best in terms of beginner friendliness. In addition, GTB is a technology-driven bank, with plethora of banking channels to take advantage of. They also have branches scattered all over Nigeria for ease of access to banking halls.
Conclusion
The benefits of having a domiciliary account in Nigeria cannot be overstated. As an online business person, whether you are trading in forex, a YouTuber, an affiliate marketer, you definitely need one to be able to transact business seamlessly. GTB is to a large extent the best domiciliary account enabled bank in Nigeria.
If you have recently tried to open one and didn’t succeed, or otherwise, let us know in the comments section. We’d be glad to hear from you.