How to make transactions with your domiciliary account in Nigeria

Are you in Nigeria and interested in managing transactions through a domiciliary account? Whether you’re in Nigeria or anywhere else globally, funding your domiciliary account is straightforward. The process of sending dollars to Nigeria has become easier.

This article will guide you through the steps of sending and receiving payments with a Nigerian domiciliary account. If you’re a business owner or an individual receiving funds from abroad, there will come a time when you need to handle payments in foreign currencies. This is precisely when a domiciliary account becomes essential.

On June 18, 2023, the Central Bank of Nigeria (CBN) instructed commercial banks in the country to cancel the restriction on cash deposits into domiciliary accounts, allowing customers to “have unfettered and unrestricted access to funds in their accounts”.

Table of Contents

What is a Domiciliary account?

A domiciliary account, sometimes known as a ‘Dom Account,’ is any account type that is managed in foreign currencies such as dollars, pounds, or euros that allows you to conduct foreign transactions on that account. It might be a savings or current account, but it is in every currency except Naira. You can use a domiciliary account to send money to another country or to receive foreign currency from another country.

Why should you open a domiciliary account in Nigeria?

To begin, if you’re considering sending money to Nigeria, there are only a few options available. One of these options involves opening a domiciliary account with various banks in Nigeria. This account allows you to perform transactions within and outside of Nigeria.

The advantages of having a domiciliary account can differ depending on the bank, but typically include the following:

International Business: This is an excellent choice for individuals engaged in international business. It facilitates both local and global transactions.
Savings Tool: Utilize the domiciliary account as a savings account. It’s particularly valuable for parents who wish to save money for their children’s education abroad.
Global Money Movement: The domiciliary account is instrumental for transferring funds abroad and receiving money in USD, EUR, GBP, and other currencies from international accounts.
Competitive Rates: Many banks offer appealing interest rates for domiciliary accounts. Make sure to check with your bank for specifics.
Online Banking Convenience: Gain access to online services like mobile banking, debit cards, online banking, email transaction alerts, and more.

How you can use a domiciliary account

A domiciliary account serves two primary purposes:

Domiciliary Savings Account: The domiciliary savings account serves as a platform to cultivate a habit of saving in foreign currencies. If you often receive or need to make payments in currencies like British Pound Sterling (GBP), United States Dollar (USD), or European Euro (EUR), this account can be highly beneficial. It’s particularly valuable for parents aiming to save for their children’s education abroad or for individuals seeking to safeguard their currency’s value.
Domiciliary Current Account: The domiciliary current account is designed to hold foreign currencies such as dollars, pounds, or euros. It provides the capability to conduct international transactions using these currencies. Additionally, as an account holder, you receive a chequebook that you can use.

What are the requirements to open a domiciliary account in Nigeria?

Many Nigerian banks let people open domiciliary accounts. These accounts let you deal with money from around the world. The rules might change depending on the bank, but you’ll need these papers when you apply:

An ID the government says is okay; like your driver’s license, national ID card (NIN), voter’s card, or international passport.
Two new passport photos.
Your Bank Verification Number (BVN).
CIU (collective investment undertakings) Form.
A recent bill for your utilities.
A Referee

What are the steps to Receive Money into a Domiciliary Account in Nigeria?

To receive money to a domiciliary account in Nigeria you will need the following information.

Account number
Name on the account
Name of the bank
Branch address of the bank
Routing Number
Swift Code. (You can Google the Swift Code of your Bank.)

To send money, you can use Internet banking or your local bank. The processes are nearly identical regardless of the bank. After receiving your bank notification alert, you may go to your bank and withdraw the funds by filling out your foreign currency withdrawal slip. Following that, you will receive your money in the currency of your choice, which might be US dollars or Euros.

Then you may decide to exchange the currency for your local currency at the bank or go to Bureau de Change to exchange it for your local currency at a much better rate. The Bureau De Change is an official meeting location for buyers and sellers of foreign money. There, you can exchange your dollars for Naira or any other foreign money.

How do I open a domiciliary account online in Nigeria?

With certain banks, you can complete everything online. Others might need you to begin online and finish the process at their actual bank location. And there are those where it’s all taken care of in the bank building.

When you open a domiciliary bank account, you can directly get money in another currency and send money in it too. Most Nigerian commercial banks ask for at least $50, €50, or ₤50 as a starting deposit for a domiciliary account.

Generally, the steps to open a domiciliary account in any local Nigerian bank typically involve one of the following procedures.

Zenith Bank

Visit the Zenith Bank website dollar to naira rate
Scroll down and click on ‘Download Account Form’. will be downloaded automatically to your phone or PC.
Ensure to fill out all the forms you have downloaded.
Once you have filled them out, email the forms to the mail address [email protected].

UBA

Visit UBA’s website
Scroll down and click on ‘Open Account
A new page will open, click on ‘Select Country’ and choose Nigeria.
Once you are done, click submit.
Select account type ‘Choose UBA Nigeria Account’ by clicking ‘Open with BVN’.
On the new page that opens, insert your BVN, BVN registered phone number, date of birth, and email address, and choose ‘Freedom Savings Domiciliary’ as the account type.
Agree to the terms by clicking on the red circle below.
Once you are done, click ‘Next’.
Insert the OTP that has been sent to your phone, upload your passport photograph and click next.
Fill in all the requirements and submit.

Union Bank

Visit the Union Bank website
Scroll down to ‘Account Opening Form’, and click on it.
Three forms will be displayed, that is ‘Account Opening Form, Signature Form, and Reference Form’. Click on each of them, they will be downloaded automatically to your phone or PC.
Ensure to fill out all the forms you have downloaded.
Once you have filled them out, email the forms to customer service.

GTB Dom account

When you have gathered all the necessary details, just head over to a nearby GTBank branch. Approach the customer service desk and communicate your purpose. They will provide you with the required forms to complete. Take your time to fill out the forms, including the section for your referees.

For a speedier account opening process, it’s advisable that your referees are already existing GTBank account holders. Once you’ve finished filling out the forms, submit them. Following this step, your account will be successfully created, and you’ll receive a notification via SMS confirming the completion of the process.

How to Send and Receive Money in Nigeria with Your Domiciliary Account

How to Fund a Domiciliary Account

If you live in Nigeria, you can fund a domiciliary account with cash or via transfers. Money can be sent to the account from outside the country via Western Union or MoneyGram, Payoneer, Worldremit, Ria Money Transfer etc.

How to Receive Money with A Domiciliary Account

Money can be transferred by Western Union, MoneyGram, direct deposit, or other transfer means. However, before you can receive cash into your domiciliary account, you must provide the money sender with some account information. Account number and name (as they appear on the account), bank name, branch address, routing number, and swift code are among them. You may get the right routing number and quick code from your bank.

frequently asked questions

How much Does it cost to open a Domiciliary Account in Nigeria?

Depending on the bank you’re opening the dom account with, some banks have no minimum deposit but in general, it can cost between $50 to $100 to open a domiciliary account in Nigeria.

Do you need a dollar card for online international payment?

Naira cards are no longer effective for covering expenses like Apple Music, Netflix, Amazon Prime, Gmail subscriptions, and numerous other international payments that Nigerians previously managed. Dollar cards come to the rescue for most of these issues, yet acquiring a dollar card necessitates having a domiciliary account. Read on How to Use Verve Card for Google Play Store in Nigeria.

Once your account is established and financed, you can request a dollar card. This card empowers you to carry out global transactions and settle subscription costs minus the complications associated with naira cards. Are you an MTN user? Read our guide on How To get a free Apple Music subscription Using MTN now.

Domiciliary Account Charges in Nigeria

The Central Bank of Nigeria (CBN) has stated that banks should charge $10 or 0.05% whichever is lower than the standard for withdrawals by domiciliary accounts users in Nigeria.

How to Check Domiciliary Account Balance?

You can check your domiciliary account balance just like your normal balance via the bank app or internet banking channel of your bank.

How much can I withdraw from my domiciliary account in Nigeria?

Domiciliary account holders can take out as much as $10,000 each day. However, banks need to give reports to the CBN that outline the reason for the transaction. Additionally, both visible and invisible transactions, like school fees, airline expenses, and medical bills, are qualified for the Investors & Exporters (I&E) window.