Owning a domiciliary account in Nigeria is extremely important, especially if you’re a businessman, woman, or entrepreneur that makes money online. It is even more important to conduct business outside the country, and your clients pay you in foreign currency. People that run blogs and freelancers find domiciliary accounts very useful. Stop wondering how to open a domiciliary account in Nigeria and get all the information you need.
What is Domiciliary Account?
Domiciliary accounts allow holders of the account to receive foreign currency like Dollars, Pounds, and Euros directly into their local bank account. Owning a Domiciliary account makes it easier to receive foreign exchange. All Nigerian banks allow their customers to open a domiciliary account; however, the requirements for opening a domiciliary account differ depending on the bank’s policies.
Types of Domiciliary Account
Like your traditional savings account, Domiciliary accounts have different types.
There is the Domiciliary savings account and the Domiciliary current account.
Domiciliary Current Account
A Domiciliary current account allows you to receive and save foreign currency. It also allows you to issue cheques in foreign currency. This type of domiciliary account is most suitable for businesses dealing with mainly foreign clients. The bank charges on this type of account are higher than others.
Domiciliary savings account
A domiciliary savings account simply allows you to receive, save, send and withdraw foreign exchange. This can be received over the counter, using a withdrawal slip, or you can have it transferred into your naira account.
Importance of Having a Domiciliary Account
Opening a domiciliary account is very important, especially if you run a business, you are an entrepreneur and a freelancer with foreign clients. Some of the importance of opening a Domiciliary account in Nigeria include:
1. It enables ease of receiving funds in other countries from anywhere directly into your domiciliary account.
2. Apart from receiving foreign exchange alone, a domiciliary account allows you to transfer foreign exchange to other countries.
3. You can make online transactions using your domiciliary account. This is helpful if you buy products or items on online platforms from other countries online.
4. A domiciliary account enables you to be able to carry out both local and international transactions with ease.
5. If you’re a freelancer, you can link your domiciliary account to your platform and receive payment in foreign exchange from your clients. The money will be transferred directly into your domiciliary account.
6. With the dwindling state of the Naira against foreign currencies, it is advisable to save your money in dollars. You can conveniently save foreign exchange in your domiciliary account and receive good interest on your savings.
7. Some banks issue USD debit cards that allow users to carry out transactions online using their cards.
8. Domiciliary accounts help you save more reliable and secured currencies against inflation.
Requirements For Opening A Domiciliary Account
While some of the requirements for opening a domiciliary account in a Nigerian bank may be similar, most banks also ask for additional information. Some of the requirements for opening a domiciliary account are:
1. A Naira account in the bank you want to open a domiciliary account with.
2. You need 2 referees with an account in the same bank to sign the reference form.
3. A well-filled domiciliary account opening form you will be issued at the bank. The form must contain accurate information.
4. A valid means of identification. This includes a National ID card, Driver’s license, International passport, and Permanent Voter’s card.
5. Passport photographs
6. Utility bill.
How To Open A Domiciliary Account In Nigeria (for Residents)
Opening a Domiciliary account in Nigeria can be done either by going directly to the bank or by simply using the bank’s website. For the less tech-savvy individuals, opening a domiciliary account in Nigeria can be done in the following steps:
1. Choose the appropriate bank
2. Visit the bank’s customer service department and request an account opening form.
3. You will be required to supply some information and provide Government approved means of identification.
Once you meet all the requirements, your domiciliary account will be open.
While some people may want to avoid the hassle of physically going to a bank branch to open a domiciliary account, it is easier to open it online. Suppose you want to open a Dollar account in Nigeria online. In that case, all you have to do is visit the specific bank’s website.