Updated on September 30, 2023
In the ever-connected world we live in today, receiving international payments or remittances in Nigeria as a lot of people are getting paid in dollars. If you want to be able to receive dollars in Nigeria, then you’ll need to learn how to open a dollar account in Nigeria with a bank or a fintech. In this guide, we’ll show you how to open a dollar account in Nigeria.
In the past, you could receive foreign funds in Nigerian Naira, but a new policy by the Central Bank of Nigeria now mandates that all international payments entering the country be in US dollars. Hence, a domiciliary account or a US dollar account is essential for receiving and saving in dollars.
A dollar account in Nigeria offers several advantages. One of them is simplifying money transfer and shielding you from Naira exchange rate fluctuations.
In this guide, Koboline will show you how to open a dollar account in Nigeria, and the advantages that come with having a dom account.
How Can I Open a Dollar Account in Nigeria
To open a dollar account in Nigeria means you have to go into one other commercial bank in Nigeria to pick up a domiciliary account opening form.
Here’s a detailed step-by-step process to open a dollar account in Nigeria:
1. Open Nigerian Dollar Account with Banks or Dollar Appss
There are currently around 21 commercial banks in Nigeria, so you can choose to open a dollar account with any of them.
Some of the banks offering the best domiciliary accounts in Nigeria are First Bank, UBA, GTBank (GTCo), Access Bank and Stanbic IBTC Bank.
You can open a personal or business dom account with any of the banks by walking into any of their branches and requesting a dollar account opening form and the requirements(documents).
You can also open a dollar account with dollar apps like Grey, Afriex, Fincra, Leatherback. Some other good dollar apps in Nigeria are Risevest, Sats app, Send by Flutterwave, and Piggyvest, however, you can only save, send, and
2. Complete Your Dollar Account Application & Registration
Other than filling out the dollar account opening form, you’ll also need to meet certain requirements and submit certain documents.
While different Nigerian banks have different requirements, there are usually what they might ask for when you want to open a dollar account in Nigeria:
- A completed Do Account opening form;
- A copy of your ID (driver’s license, international passport, or national ID card);
- One passport photograph;
- Completed reference forms;
- Proof of address (such as a utility bill issued within the last 3 months).
- Depending on the bank you may need to pay a minimum account opening balance to your domiciliary account for it to be active. For example, GTBank requires $100 while UBA has no minimum opening balance to open a dom account.
For the dollar apps just complete your registration and you’ll be setup to start receiving dollars in Nigeria.
3. Start Receiving Funds with Your Dollar Account
After meeting the requirements for opening your dollar account, you can now start receiving funds into your dom account. However, you should note that there are fees that you incur when you perform transactions with your dollar account in Nigeria.
How to Receive Dollars in Your Dollar Account in Nigeria
A common way to send dollars to a Dom account in Nigeria is via bank-to-bank wire transfer, however, money transfer services is usually cheaper.
Some of the best money transfer services to send dollars to Nigeria are Remitly, WorldRemit and TransferGo.
Pros of Opening a Dollar Account in Nigeria
here are some of the advantages you get when you open a dollar account in Nigeria:
- When you receive money from abroad you don’t have to convert it into Nigerian Naira, with the dollar rising against the Naira you can hedge against inflation
- You can protect against extreme Naira exchange rate fluctuations since the US dollar is a very stable currency
- You can convert your US dollars into Naira at your convenience
- Opening a dollar account in Nigeria means you have access to a US dollar Visa or MasterCard that you can use to pay for things online or when you travel abroad.
What is a Dollar Account called in Nigeria?
A dollar account in Nigeria is called a Dom account or a domiciliary account.
How to Withdraw Dollars from your DOM Account in Nigeria
You can withdraw US dollars from your bank account in Nigeria by going into the bank filling a withdrawal form and submitting it to the bank teller.
How to Convert Your Dollars into Nigerian Naira
Your bank in Nigeria can help you convert your dollars to Naira for you. But a better option will be a Bureau de Change (BDC) operator because they tend to have better rates than the banks in Nigeria.
Which Bank is Best to Open a Dollar Account in Nigeria?
The best banks to open a dollar account in Nigeria are GTbank, UBA and First Bank.
How Much does it Cost to Open a Dollar Account in Nigeria?
Dollar accounts in Nigeria are often free to open, but some of them require a minimum opening balance of around $100 to $500 depending on the bank. However, the UBA dom account has a $0 minimum opening balance.
Leave a Reply