This article covers everything you need to Know about Domiciliary Account in Nigeria
What is a Domiciliary Account?
Domiciliary account, by simply definition allow you deposit, transfer or withdraw foreign currencies, safe with bank. In other words, with domiciliary account you save and operate foreign currency account in Nigeria.
The different domiciliary account you can operate in Nigeria include; dollar, Euro and Pounds sterling account. But, dollar account is the most popular domiciliary account operated in Nigeria.
Benefits of Operating Domiciliary Account
Operating domiciliary account in Nigeria offer so many benefits. With domiciliary account, you can:
- Pay for products purchase from foreign websites
- Pay for international services like conference, web hosting, web development etc.
- Pay school fees abroad
- Run your ads campaigns on social media, Google, etc.
- Make Foreign Currency Salary payments and cash lodgment.
- Offers Issuance of foreign currency denominated drafts
Requirement for Opening a Domiciliary Account
Every commercial bank may present its own requirements. But, the major requirements for opening domiciliary account in Nigeria include:
- Complete domiciliary forms – you’ll fill these forms.
- Valid means of Identification – National ID Card, Driver’s License, or International Passport can serve.
- Passport photograph – some bank will request one passport while some others will request two passport photographs.
- Utility Bill – Electricity or water bills can serve for your address verification
- Two current account holders as Referees
- Small amount of foreign cash – you’ll need to deposit this cash in your domiciliary to activate the account.
See more on documents needed to open a domiciliary account
How to Open a Domiciliary Account in Nigeria
Opening a domiciliary account in Nigeria is very easy. Here are steps to open a domiciliary account in Nigeria:
Walk into a commercial bank of your choice and meet with their customer care representative. You’ll be redirected to one of their marketing managers who is in charge with domiciliary account opening.
Request you want to open a domiciliary Account with them. N.B: some of the Best bank for domiciliary account in Nigeria you can visit include GTBank, Access bank, Firstbank, and Fidelity bank. You can read more on Best bank for domiciliary account in Nigeria
You’ll be given the domiciliary account forms to fill. Ensure you fill them correctly. Where you are confuse, asked questions. Don’t ignorantly fill the form.
Finally, you’ll be request to get two referees to fill the reference form for you. To speed up things, try as much as possible get two referees who have current account domiciled within the bank you’re opening the domiciliary account.
Within 7- 14 working days, you’ll receive an approval SMS message containing your new domiciliary account number if you meet all their requirement. This is how to open a domiciliary account in Nigeria
Note: Some commercial bank may require that you open a savings account with them before opening the domiciliary account.
Is it possible to open a domiciliary Account Online?
No. But, you can initiate Domiciliary Account Opening Online while you complete the remaining process at the bank branch’s office.
For example; you can initiate the opening of corporate GTBank domiciliary account online. To begin, you’ll need to navigate to GTBank website and download domiciliary account opening form, fill it correctly and take it to nearest GTBank close to you to open the domiciliary account.
Cost of opening a domiciliary account in Nigeria
Cost of opening a domiciliary account in Nigeria varies depending on the bank. Opening Firstbank domiciliary account in Nigeria will require a minimum opening deposit of $500, €500 or £300. GTbank will requires minimum deposit of 100 dollars for your account activation. FCMB will require opening balance of 60 GBP, 100 USD, 70 EUROS. While bank like Stanbic IBTC will require minimum account opening balance of $100 for personal and $500 for business accounts.
How to Fund a Domiciliary Account in Nigeria
If you need to fund your domiciliary account, here are five ways to fund your domiciliary account in Nigeria;
- Wire transfer
- Local transfer
- Bank deposit
- Traveller’s cheque
- lodgment of foreign currency cheque
A wire transfer is the electronic transfer of funds across a network of banks around the world. To send money to your domiciliary account in Nigeria via wire transfer:
Visit international bank close to you if you’re abroad, request for wire transfer and you will be given a depositor’s form to fill. The particulars of the fund receiver you need to fill are;
- Receiver’s Account Name
- Receiver’s Bank Name
- Bank Swift code
- Bank branch (option)
Fill the transfer form, once correctly fill the bank will wire the fund to your domiciliary.
In local transfer, your relative, friend or business associate who is in Nigeria sends money to your domiciliary account. Again, someone whom you sold a product to in Nigeria may also wish to make a local transfer of foreign currency into your domiciliary account. All you need to do is just to provide your domiciliary account number, bank and account name to them.
Here, you personally or ask someone to go your bank and pay in foreign currency into your domiciliary account in Nigeria. So, this involves manual deposit of fund into your domiciliary account.
For example, if your domiciliary account is in dollar, you can deposit dollar into the account if you have some dollars you don’t want to make use of..
Traveller’s cheque is an exchange medium that can substitute for the hard currency. The cheque is issued to an individual who travels on vacations overseas. Once you’re in overseas, you transfer fund to a domiciliary account by paying in the cheque into domiciliary account.
Lodgment of foreign currency cheques
Lastly, you can fund your domiciliary in Nigeria paying in a foreign currency cheque issued to you in foreign currency. Foreign currency cheques are convertible into cash and transfer to a domiciliary account. The Foreign currency cheque must be corresponding to your domiciliary account type for it to lodge into your domiciliary account
How to Withdraw from Domiciliary Account in Nigeria
Withdrawing foreign currency from your domiciliary account in Nigeria is just very simple.
- Visit the bank you’re operating a domiciliary account bank with
- Request for foreign currency FUND withdrawal
- Fill the foreign currency withdrawal form
After which the cashier will issues you the cash. This is how to withdraw fund from a domiciliary account in Nigeria
You can withdraw dollars, Pounds and Euros from your dollar, pound and Euro domiciliary account respectively.
Frequently Asked Question on Domiciliary Account
How much can I withdraw from a domiciliary account in Nigeria?
Ans. CBN has raise Domiciliary Account Withdrawal Limits to US$10,000 per day. So, you can withdraw as much as US$10,000 per day from your dollar account.
Can I withdraw all the money in my domiciliary account?
Ans. Yes, you can.
How can I use a domiciliary account in Nigeria?
Domiciliary account can be use in the following ways in Nigeria.
- It can use to save foreign currencies such as US dollars, Euros, Pounds sterling in a bank account in Nigeria.
- You can use domiciliary account to transfer money from Nigeria to a recipient family member, relative or friend abroad.
- You can also use it to receive foreign currencies from abroad.
- It is an alternative to PayPal account.
- As a channel for Investments in securities and real Estate in home & abroad.
- It is use to purchase or trade foreign stocks, and also buy shares.
Which bank offers the best Domiciliary Account in Nigeria?
Ans. If you ask me that, I will tell you it is Guaranty Trust Bank. With GTbank domiciliary account, you can deposit little funds into your GTBank domiciliary account (as low as $5) which is impossible with other banks’ domiciliary account. Also, you can sell your foreign currencies to GTBank, this service is not available with other banks in Nigeria. With Gbank App, you can move fund from your domiciliary account to another account
What is Domiciliary Account Charges in Nigeria?
Answer: Like GTbank Domiciliary Account Charges – you can operate Gtbank Domiciliary Account as zero accounts and also zero charges on cash withdrawal. However, to send money out through GTBank domiciliary account to another country; you will be charge:
- Offshore – $25
- Telex – #6000
- Commission – 2% of Principal
- VAT – 5% of Commission
Can I open Domiciliary Account overseas?
Ans: You can open and operate domiciliary account in South Africa, Deutsch, USA, India, Malaysia and UK. You can transfer money through the domiciliary account from any of this country to Nigeria.