This post will guide you on how to open a domiciliary account in Nigeria. A domiciliary account is an account that you open and fund with foreign currencies whether it is with Dollars, Pound Sterling, Euros or any other top foreign currency that is used in transacting business in the world market.
One of the advantages of having a domiciliary account in Nigeria is that it enables you to conveniently conduct your foreign currency transactions anywhere you are in the world, from the convenience of your home, office, etc., and you can fund your account through cash inflows from different sources or through cash deposits as well. This in itself is a welcome development as far as international business transactions are concerned.
You should note that while you are saving your foreign currencies, which as earlier stated, may be US Dollars, British Pounds Sterling, Euro or Yen, depending on your currency of choice, the value of your money when you convert it to Nigerian Naira is influenced by the current exchange rate in the country at any given moment. You should ensure to bear this in mind at all times as exchange rates are not fixed, they fluctuate from time to time according to the activities in the world market.
As is the case with your normal Naira savings or current accounts, you will be be provided with debit cards, internet banking, and mobile banking application on request for your transfers, payments, standing orders, to mention but a few. All these bank transactions can be done without you walking necessarily visiting your bank branch. Note that when you request for your domiciliary account debit card, it comes with different charges for different banks.
A domiciliary account is just like your normal Naira savings account but this time, you are saving foreign currency and through it, you are making foreign payments for international transactions from time to time. So if you have always had a challenge sending and receiving foreign currencies due to genuine businesses that you do internationally and you have been looking for a solution to the issue, the right way to go would be for you to open a domiciliary account with any bank in Nigeria in order to smoothly go about your business without any stress.
WHAT ARE THE REQUIREMENTS FOR OPENING A DOMICILIARY ACCOUNT IN NIGERIA?
The following are the processes and requirements for opening a domiciliary account with any bank in Nigeria:
- Go to any Nigerian commercial bank which offers this type of account service and ask for the domiciliary account opening form.
- You will be given the form to fill and it requires that you fill in your personal details and submit along with it, any valid means of identification (such as national ID card, driving licence, international passport, voter’s card or any other document that the bank requests), in order to verify you appropriately.
- You are required to also present a copy of your current utility/electricity bill or your water corporation bill. This bill must contain the same address you used in filling the domiciliary account opening form because it will be used by your bank to verify your address.
- You are also going to be given two reference letters by your bank. This is so that you can give it to two current account holders from any bank in the country to fill and stand in for you as your referees. Two people who operate domiciliary accounts with the same bank can also fill the forms as your referees.
- You are to provide two current passport photographs of you, it is usually one but go with two just in case.
- Note that if you have a current account with any other bank in the country or with the bank you have chosen to open a domiciliary account with, some of the requirements above may be skipped. Your bank may require you to open either a savings or current account if you have none with them so that you can use it along with your dom account.
- Upon successfully filling your form and meeting all the requirements for opening a dom account, you will be required to make an initial deposit of one hundred US Dollars, $100. This varies from bank to bank, and you can withdraw the money once your domiciliary account is active.
It takes a period of 48-72 hours for you to receive your domiciliary account details via sms and email notification. Many banks may require you to fund your domiciliary account with their specified minimum amounts before your account opening process can be completed but with GT Bank, you can open a dom account at no cost and fund it as soon as you get the money to do so.