Domiciliary account, the only way someone can receive or have funds in foreign currency here in Nigeria. If you have someone that sends money to you from abroad or you receive money from abroad, you need to open a domiciliary account.
You don’t have to go about receiving funds from abroad into your naira savings account because the exchange rate is way too low compared to the black exchange rate.
However, this is not the only reason to open a domiciliary account in Nigeria.
There are so many reasons and all that I will explain in this article.
The first and foremost question one will ask is;
What is domiciliary account?
A domiciliary account is a type of account in Nigeria which gives a bank customer the opportunity to receive funds in foreign currency mostly in dollars, pounds and Euro to it’s bank account.
All banks in Nigeria operates a domiciliary account, with different requirements and charges. Right now there’s a necessity to have a domiciliary account especially if you’re a business person, buy products or make payments online, or your frequently receive funds online.
Now let’s proceed to the benefits, requirements, how to open a domiciliary account in Nigeria, withdraw from the account and check your account balance, etc.
All you need to do is to read from the beginning and until the very end of this article as it will be a lot helpful to you.
Domiciliary account meaning
This simply means the ability for a bank customer in Nigeria to have a bank account that operates in foreign currency like the US dollar, pounds and Euro.
When you have a domiciliary account in Nigeria, you can have dollar, pounds, or euro by receiving them from abroad or through the black market.
What are the benefits of domiciliary account?
There are tons of benefits derived from having a domiciliary account in Nigeria, but I will list the very major benefits especially right in now in 2021/2022.
They are as follows;
- Domiciliary account gives you the opportunity to have a dollar, pound, or Euro.
- Payment in foreign websites or country is made lot easier thanks to domiciliary account and the dollar debit card. No limit and no restrictions.
- Having a domiciliary account in Nigeria gives you the option to get the best exchange rate especially if you frequently receive money from abroad.
- You can request for a dollar debit card
What are the requirements to open a domiciliary account?
The requirements to open a domiciliary account in Nigeria varies from bank to bank, though the general requirements includes the followings;
- A passport
- Utility bill
- Means of identification
- Two referees (depending)
Passport is very compulsory in opening a bank account in Nigeria, so you must get one whether white background or red background.
However, if you have already have an account with the bank you’re opening a domiciliary account, you may not necessarily provide a passport. I’m very much sure of gtbank, zenith and access.
Instead of filling an account opening form, you will fill an additional account opening form.
Utility bill is very compulsory as long as you’re opening a domiciliary account in Nigeria. Even if you’re opening the account as an additional account, you must provide an utility bill.
Mostly it is Nepa bill though you can provide rent bill or water bill.
Remember the bill will be any of the last three months bill, and this is where the Nepa bill comes in handy.
MEANS OF IDENTIFICATION
Means of identification is very much compulsory, and it can be any of the national ID card(nin), permanent voter’s card, driver’s license, or the international passport.
For the national ID card, you can use the nin slip or print out to open a domiciliary account.
TWO REFEREES/REFERENCE FORMS
This is where it gets harder to open a domiciliary account in Nigeria. And that is bring two referees.
Not just one but rather two referees with a current account.
Gtbank are so fond of rejecting referees and you may get pisses off opening a domiciliary account with them.
Most banks requires two referees to open the Dom account especially if you’re opening a zero Dom account. This includes the likes of gtbank, uba, zenith bank, and access bank. These are the banks I’m quite of that requires two referees for their domiciliary account.
The likes of first bank don’t require a referees but they don’t offer zero domiciliary account. You must open the account with at least $100 or even $500 depending on the type of domiciliary account you prefer to open with them.
Remember, you will have to collect two reference forms for each of your referees to sign along with their bank information and personal details like name and home address.
These are the requirements to open a domiciliary account in Nigeria.
How much does it cost to open a domiciliary account in Nigeria?
Opening a domiciliary account in Nigeria is usually free or zero account though the likes of first bank is not free and some types of Dom account are not free.
For example, zenith bank has two types of domiciliary account. They are the Ordinary Domiciliary Account and the Cash Domiciliary Account.
The Cash Domiciliary Account is free to open but only operates in dollar, while the Ordinary Domiciliary Account requires a minimum of $1k and operates in both USD, pounds, and Euro.
If you want to open a domiciliary account with first bank, then you should know it is not for free and requires a minimum opening balance of $500, €500 or £300.
For access bank domiciliary account, you must have an opening balance of $100, £100 & €100 to open a Dom account with access bank. They have two types which includes savings and current and they are not free or offer zero account opening.
Now let’s proceed how you can open the account.
How to open a domiciliary account in Nigeria
To open a domiciliary account in Nigeria, you have to go to the bank and head over to the customer service representative and request for account opening form. Notify them that you want to open a Dom account incase they have a separate form for it.
The customer service representative will give you the form fill, and it’s just like when you’re opening a bank account.
The only difference is that you will have to select domiciliary account instead of savings account or any other option you see on the form.
Calmly fill out the form and when you’re done submit it back to the customer service representative to begin the process of opening your account.
The only thing required from you is to fill out the form, give the customer service representative the necessary requirements and wait till he or she says you can now go.
Depending on your bank it can take up to 72 hrs to receive your account number.
After you have received your account number, that means you have successfully opened a domiciliary account in Nigeria and ready to receive funds into the account.
Please kindly note that if you have a savings account or any other with the bank please specify so that you will be issued an additional account form instead of new account opening form.
How to send money to a domiciliary account
To send or receive money into a domiciliary account, you only have two options which includes receiving funds through inflow or depositing funds into the account.
Some will get confused trying to understand what inflow is all about.
Inflow is the process of receiving money from abroad into your local bank account in Nigeria.
So if someone sends money from abroad into your bank account in Nigeria, it is called inflow and through this means you can fund your domiciliary account.
Another option to send money to a domiciliary account is by funding or depositing cash into the account.
How do you go about it?
It quite simple.
All that us required from you is to look for any reliable and trusted black market seller and buy dollar, pound, or Euro and deposit it into your Dom account.
For example, you want to fund your dollar account in Nigeria, all you have to do is to look for any aboki or fx money exchange and change your naira into dollar. Afterwards you head over to the bank and deposit the money into your Dom account.
These are the sure way to send money to a domiciliary account. If you know any other methods please let me know through the comments.
How to transfer money from domiciliary account to naira account
I’m sorry you cannot transfer money from domiciliary account to naira account because the currencies are different, you can only transfer from domiciliary account to a dollar debit card or any currencies.
You can only transfer from naira to naira account, pound to pound account, or Euro to Euro account respectively.
How to withdraw money from domiciliary account?
To withdraw money from domiciliary account, head over to the bank and to the fx section depending on the bank. Request for a withdrawal slip and you will be given a foreign currency withdrawal slip to withdraw your cash in the foreign currency.
Where the problem lies
Bank claiming they don’t have any available cash to give to you. This is quite popular in pounds and Euro, depending on the bank, you may encounter some hitches trying to withdraw pounds or Euro.
They will be telling you come today come tomorrow. This is usually caused by scarcity of foreign currencies according to the bank though I m don’t really buy that story at all.
You can also withdraw money from the local atm though it will be converted into the bank naira to dollar rate, and cash will be dispensed to you.
Honestly, that’s a big trash due to the exchange rate.
Imagine changing $500 to N412 while you can get $500 to N550 in the black market. Do the calculation and see how much you have lost exchanging $500 using the bank rate.
How to check Domiciliary account balance
The best way to check Domiciliary account balance is by using the mobile banking app or the internet banking in checking the account balance.
All you need to do is to download the bank mobile app, register and login into your account. This also goes with using the internet banking to check Domiciliary account balance.
If you already have a savings account with the bank and which you have already opened an internet banking or mobile banking app, go to the bank and request they add the domiciliary account to your online banking account.
After the bank must have done it, you will see the domiciliary account in your internet banking or mobile app along with other accounts you have with the bank.
Another way to check Domiciliary account balance is by contacting the bank customer service representative and request to check your account balance.
For me, you should try and open an internet banking or use the bank mobile app as it is the best to check Domiciliary account balance in Nigeria.
Best domiciliary account in Nigeria
I give the best domiciliary account in Nigeria to gtbank simply because they are quite easy to open, their dollar card maintenance fee is low compared to other banks, and as well as their withdrawal fee.
Please I’m not saying that other banks are poor when it comes to having a Dom account, just thar gtbank is quite easy except for the referees where one might experience some hitches.
Zenith bank domiciliary account is very much okay though for someone to open both the dollar, pounds and Euro, one will require to have $1k or it’s equivalent in naira to open the account. In this aspect, gtbank gives you the option to open the three Dom accounts (dollar, pound & Euro) with zero balance.
However, if you want to open a domiciliary account where you won’t see any problem of scarcity of dollar, pounds or Euro, go for firsr bank domiciliary account though it isn’t for free.
You must have at least $500, €500 or £300 to open first bank domiciliary account, and the minimum operating balance of $100, €100, or £50 respectively.
The best banks i recommend to open a domiciliary account in Nigeria includes the followings;
- Zenith bank
- Access bank
If you can undergo first bank headache, then I also recommend them to you.
First bank is good for a domiciliary account, but they are very strict with their dealings.
Domiciliary account referees
Please if you’re providing a referee for your Dom account, you have to make sure that the two referees meet these requirements;
- Must not be a Salary account holder
- Must not be a Staff account holder
- The account must not be Dormant/closed account.
- The referee must not have an accounts with outstanding references
- The referee account shouldn’t be less than 6 months old
- The referee must not have a Savings account
Banks do reject referees if they fail the above requirements and gtbank are expert in this aspect.
Generally, the referee must have a current account and not a savings account, and the current account shouldn’t be less than six months. Lastly the referee shouldn’t have salary account holder this very one depends on the bank you’re opening the Dom account.
Can I withdraw naira from my domiciliary account?
Yes you can withdraw naira from your domiciliary account but it will be through the atm after it has been converted to the naira to dollar bank exchange rate.
To withdraw naira over the counter from your domiciliary account, they bank will give you their rate and issue the naira equivalent to your bank account or they give it to you in cash.
But that’s rubbish for me because the bank exchange rate is way too low compared to the black market rate.
How to open dollar account in Nigeria online
It is quite impossible to open a domiciliary account in Nigeria online though I recommend you to contact the bank and let them guide you through on how you can fill out the form, and forward the form along with other necessary requirements through online.
You must give a valid reason to open a domiciliary account in Nigeria online else the bank might not respond to your request.
Can i transfer naira to my domiciliary account?
No, you cannot transfer naira to your domiciliary account but rather the currency which you operate on, this can be dollar, pound or Euro.
You can buy dollars from the black market sellers and deposit the money into your domiciliary account.
Advantages of domiciliary account
Domiciliary account gives you the advantage to have a foreign currency here in Nigeria, request for a dollar card and use it to make payments without a restriction or spending limit.