Following the new policy by the Central Bank of Nigeria (CBN) that all money transfers to Nigeria to be paid in US dollars, your friends, family members or business partners may need to open domiciliary accounts to receive US dollars. Without a domiciliary account, they may not be able to receive the funds you send to them. You can also use the account to make payment to international suppliers.
The Central Bank of Nigeria has suspended international money transfers to mobile wallets in Nigeria. This is because of a new regulation that only allows US dollar payout for remittances in the country. The suspension will improve visibility of US dollar remittance flows.
The US money transfer organisation, Majority, has issued the following warning on its website:
You can only send USD to domiciliary accounts in Nigeria. If you send USD to a Naira account, the transfer will not be delivered and will eventually be canceled. It might take up to 72 hours to receive a notification of the cancellation.
What is a Domiciliary Account?
A domiciliary account is a current or savings account that allows you to transact in foreign currencies such as US dollars. You can use a domiciliary account to receive and send money in foreign currencies. A domiciliary account can be opened for both individuals and businesses.
How to Open a Domiciliary Account
You can open a domiciliary account with most of the major banks in Nigeria. The process requires more or less the same documents you use to open a normal checking or savings account. These include address, filled and signed Domiciliary Account opening forms, passport photos, valid ID (passport, driver’s licence, nation identity card, voter’s card), public utility receipt within the last three months, and BVN number if you are already an account holder with the bank.
There are different requirements minimum account opening, withdrawal limits, etc. Wema Bank, for example, has a minimum account opening and operating balance of $100 for individuals and $150 for MSMEs and corporates.
Domiciliary Banks Fees
Most banks don’t charge fees for opening your account. But there will be other fees, which vary depending on the bank. For instance, Zenith Bank $3 for receiving money into your account. Stanbic Bank charges $10 withdrawal fee. You need to find out all required fees from the bank of your choice before you open your account.
Banks With Domiciliary Accounts
You can open a domiciliary account in Nigeria with all major banks. Once your account is open, you can start receiving remittances immediately. Some of the bank you should consider when you want to open a domiciliary account are:
- First Bank Nigeria
- Sterling Bank
- Wema Bank
- Stanbic Bank
- Zenith Bank
- Access Bank
- Fidelity Bank
Final Thoughts on How to Open a Domiciliary Account in Nigeria
With a domiciliary account, your recipients in Nigeria will be able to receive US dollars in their bank accounts according to the new remittance policy. Find out the best ways to send US dollars to Nigeria from the US or best ways to send money to Nigeria from the UK.
To know the exact steps and documents needed to open a domiciliary account in Nigeria, you should visit the nearest branch of the bank of your choice or visit their website.