It’s very important you understand how to send and receive money into a domiciliary account in Nigeria especially if you are an individual or a business that sends and gets funds from outside the country. With the limits and limitations on Nigerians utilizing e-payment systems like PayPal, utilizing a domiciliary account to make and receive payments in a foreign currency is essential. Depending on the bank and its restrictions, this type of account is simple to open, maintain, and use.
In this article, we will be discussing what a Domiciliary account is,who is eligible to open a dom account, benefits of Dom account and various ways you can easily get money into your domiciliary account here in Nigeria.
WHAT IS A DOMICILIARY ACCOUNT, AND HOW DOES IT WORK?
A domiciliary account is a type of bank account that lets you receive and send money in foreign currencies, such as US dollars. The current naira exchange rate is applied to all funds in a domiciliary account.
WHO IS ELIGIBLE TO OPEN A DOMICILIARY ACCOUNT?
Individuals and businesses can both open and operate a domiciliary account at most banks. You will be eligible to apply if you have all of the required documents, including identification, a valid residency permit, proof of address, and the appropriate bank forms.
CHECKLIST FOR DOMICILIARY ACCOUNTS DOCUMENT
To open a domiciliary account in Nigeria, the following documents are normally necessary. Before you leave, double-check with your bank to ensure you have the proper papers.
- Account opening form completed (different per bank)
- Signature card with a completed sample
- Two (2) passport photos taken recently
- A utility bill, for example, can be used to verify your address.
- Valid identification, such as an overseas passport, a driver’s license, or a national identification card
- Permit to stay in the country
HOW TO OPEN A DOMICILIARY ACCOUNTS IN NIGERIA
You can apply for a domiciliary account once you’ve checked with your bank and have the necessary papers.
The appropriate forms you’ll need are usually available to obtain and fill out online. Many banks, on the other hand, insist that you apply in person at a branch near you.
Most banks provide no-fee domiciliary accounts.
Note: If you want to open a joint account, you may need to fill out a separate joint account holder form and go to the bank together.
HOW TO EASILY GET MONEY INTO YOUR DOMICILIARY ACCOUNT IN NIGERIA
There are a number of simple ways to receive money into your domiciliary account. This is determined by the bank, the website, the payment channel, or even a Western Union transfer.
The following is the information you would need to submit to anyone wishing to send money to your Nigerian domiciliary account:
- The account number for Domiciliary
- The full name that was used to open the account.
- The name of the financial institution that will receive the funds.
- The bank branch where the funds will be transferred’s the address.
- The routing number is a nine-digit code that is used to identify the financial institution.
- Swift BIC Code (Swift Business Identification Code)
HOW TO EASILY TRANSFER MONEY INTO A DOMICILIARY ACCOUNT IN NIGERIA
If you need to deposit money into your account, you can go to a bank with the foreign currency and make a simple deposit into your domiciliary account or through internet banking.
The steps are usually the same regardless of the bank.The bank normally sends you a bank alert on any transaction you make in your domiciliary account to ensure that you have received the monies.
You can also make a direct withdrawal from a local bank by completing a foreign currency withdrawal slip.
WHERE CAN I CHANGE MONEY FROM A FOREIGN CURRENCY ($) TO NAIRA (N)?
If you’re seeking the best spot to exchange your US Dollars, Euros, Pounds, or any other foreign money for Naira, the Bureau De Change is the place to go.You can either sell or buy numerous currencies at this location.You can also meet Aboki, who can be seen strewn over banks.You only need to be cautious because some are deceptive.
WHICH NIGERIAN BANKS HAVE DOMICILIARY ACCOUNTS?
Most banks in Nigeria allow you to open a domiciliary account, including the following:
- Guaranty Trust Bank (GTB)
- Zenith Bank
- Firstbank
- Access Bank
- United Bank For Africa (UBA)
- Plus, many more!
If you do not see your bank listed here, make sure to check with them. They still may let you open an account.
THE BENEFITS OF OPENING A DOMICILIARY ACCOUNT IN NIGERIA
The benefits of opening a Domiciliary account in Nigeria are numerous.The most significant advantage of a domiciliary account is the ability to receive and complete transactions in foreign currencies such as pounds, US dollars, and euros.
Most banks enable you to withdraw money from any branch and do not limit the number of withdrawals you can make, allowing you to get your money fast and easily.
These advantages include:
1. ACCEPTANCE OF FOREIGN CURRENCIES INTO YOUR ACCOUNT
One of the key benefits of having a domiciliary account is that you can receive currencies in international denominations such as dollars, euros, pounds, and yen. In Nigeria, all other types of bank accounts accept only the Naira currency. You can deposit money into your dom account via traveler’s checks, cash deposits, or foreign currency cheque deposits.
When it comes to sending or receiving foreign money, this is one of the most significant issues we encounter in Nigeria. If you don’t have a domiciliary account, the bank will convert your foreign cash to local currency at the official CBN rate, which is far lower than the black market rate. The majority of people prefer to withdraw money from a bank and exchange it at the black market rate, which is usually greater. At the time of writing, 1 USD was worth 480 yen.
2. PAYMENT FOR INTERNATIONAL TRANSACTION
You can make international transactions if you have a domiciliary account. This is feasible with the help of a dollar MasterCard, which you can obtain from your bank. You would use this card to pay for things or services on foreign e-commerce sites such as Amazon.com, eBay.com, Alibaba, and others. The value of having a domiciliary account as a blogger as an internet business person cannot be overstated.
3. MANAGEMENT OF YOUR FOREIGN CURRENCY
Because the Nigerian Naira has been volatile, it’s a good idea to open a dom account to save your foreign currency. The exchange rate of the Naira has always been a thorn in the flesh for importers who import from abroad, causing a rise in commodity costs. With a well-funded domiciliary account, it’s simple to keep track of your money because you may purchase and sell foreign currency whenever you choose.
4. TO SAVE MONEY
This is the primary reason why people create any form of account, and a dom account is no exception. All you have to do now is research the top banks in Nigeria to open a domiciliary account. While we’ve talked a lot about it, keep in mind that these banks will let you save in US dollars, British pounds, Euros, or any other foreign money.
5. ATTRACTIVE RATES
With your Dom account, you can transact with rates that are appealing. Check with your bank; most banks provide competitive interest rates on dom accounts.
6. INTERNET BANKING
Get online banking services like mobile banking, debit cards, internet banking, transaction alerts through email, and more.
Read Top Employable Skills You Should Learn in Nigeria 2021
FINAL REMARKS
As you can see, the advantages of having a domiciliary account outweigh the drawbacks. It is critical to have the ability to send and receive payments in foreign currencies, which is why establishing a domiciliary account in Nigeria is critical. The sole disadvantage to this sort of account is the cost of upkeep, which some Nigerian banks charge for. Additionally, you may be needed to have a minimum of $100 in order to open a dom account and conduct certain activities including receiving cash in foreign currencies.
