Dollar account is a type of financial account that receives payment in United State dollar currency, it is very useful in the aspect of getting exact amount paid from earning source. Many Nigerians need dollar bank account for international transactions both to send and receive money from abroad especially freelancer or online or remote workers or let me say digital citizens.
Havin a dollar account also help travellers and business owners that buy in USD currency because a lot of foreign countries that sell to Nigerians might not support naira in their payment gateway so the simple solution to resolve that challenge is to create dollar account and keep ur business going, in this article I am going to explain how to open a dollar account in Nigeria; the details required, the importance and some bank that will do it easily for you.
What is a Dollar Account (Domiciliary Account)?
It is an international bank account a.k.a domiciliary account that allows a Nigerian or any other country person to receive money from abroad in dollars instead of normal naira currency.
Difference between a Dollar Account and Naira Account:
| Account Type | Naira Account | Dollar Account |
| Currency sign | ₦ | $ |
| Region used | Nigeria | USA |
| Type of Transaction | for local transactions within Nigeria | for international transactions in the whole world, foreign. |
| Benefit | receive and transfer money, for local payment limited to Nigeria. | receives and transfer money for online payment like shopping abroad while in Nigeria |
| ATM support | You can deposit naira and withdraw at ATM gallery | You can only deposit and withdraw inside Bank. |
| Exchange Rate | Sometimes Low | very High |
| Extra charges | Yes, bank sometimes charge a Naira account for maintenance | No charges for dollar account. |
| Card Type | Debit or MasterCard, but not support online payment | Debit, Visa, MasterCard, all goes well 100% for online transactions |
| To Open account | Naira account needs only you alone with 3K or 5K to deposit, and it’s straight forward | Dollar account need 2 or 3 guarantors, CAC sometimes, reasons for opening, strict rules and $100 deposit (depending on bank) |
| To use | Just withdraw and use, simple | First withdraw, secondly go and change to naira before you can use, complex a bit. |
Types Of Domiciliary Accounts:
There are 3 common types of foreign bank account in Nigeria, this are:-
- Dollar Account
- Euro account
- Pounds account
you can open multiple dom account if you are hoping to receive and send different currency like dollar, pounds and euro, this is becos pounds can not enter dollars account but if you want to do it the bank will get permission from you first then convert the pounds or euro to USD and credit it to your dollar account.
CBN – Central Bank of Nigeria approves the use of these international account in Nigeria because they know that some Nigerians works with foreign companies will expect their salary in foreign currency but the rules and regulations is that you are not permitted to do fraudulent transactions when using this accounts, that’s why sometimes if owner of account receive money and the sender (victim) report that he was duped or scammed the bank officials are going to lock the dollar account immediately. For dat it advised to always trust the source of funds or face the law on money laundering.
Advantages of Opening Dollar Account in Nigeria
I have used dollar account since 2021 and I can tell you the benefits:-
- I can work for a USA company remotely (from my house) knowing that my salary is going to be paid to my dollar account and I can withdraw it in Nigeria.
- It helped me save money in USD, when naira is dropping, dollar is rising.
- Dollar account enable content creator get paid from Facebook, YouTube, Tiktok.
- Dollar Account help business men and women to pay for items they order from abroad and ship to Nigeria
- People that work on Upwork or fiverr, bloggers that publish and monetize with ads network can easily receive salary in USD.
Infact, to get dollar account when you are in Nigeria is a flex and something people see as a blessing.
Types of Dollar Accounts You Can Open
- Personal Dollar Account: this one is the type that content creators used, blogger, free lancers and general for people doing online jobs to get payment from abroad and also send money for Internet shopping.
- Business Dollar Account: companies that are registered with government use this type of dollar account for business transactions.
- Savings dollar account: a type of foreign account to put small small money and stock in USD currency,
- Current Dollar Account: this type of dollars account is used to do regular business money transfers. this is the type that Alhaji or aboki normally use to run currency exchange business.
- Fixed Deposit Dollar Account: this type of dollar account is for people that want to keep their money for a long time like 6 months up to 1 year or more and expect interest from bank.
Requirements for Opening Dollar Account in Nigeria
if you are ready to open a dollar account in Nigeria, this are things you should keep in place before working into the banking hall:
- Small picture hard copy (pass port)
- BVN – bank verification number
- NIN – national identification number
- TIN – Tax Identification Number
- Nepa bill (1 months or 3 months old)
- Either Drivers License, International Passport or Voters card (current one)
- Get a physical $20, $30 or $100 down.
- 2 or 3 References (people that speak for you, e.g guarantors.
this is example of dollar account opening form in Nigeria looks like (the reference form section). ⚠️We have no right to this picture, it is used for educational and informational purpose only.
How to Open a Dollar Account in Nigeria Step by Step
After following this very simple guide you will discover how to create dollar account in Nigeria using any bank.
- Find out which bank use to open dollar account for person
- Go to the bank
- Tell the Customer service you want to create dollar account they will give you paper form
- Fill it with all ur legal names and other informations.
- Submit it back to the customer service and wait for them to process it, listen to any instructions that will say.
- Pay in the physical dollar with you (if they say you should)
- If they ask for Swift code, enter Google and ask which Swift code the bank use, you will see it, copy and put.
- After everything is done, your account number will be created and given to you.
- Go home and wait for 24 hours or 2 to 3 days the account will successfully open and activate
- Start using your dollar account, congratulations.
⚠️Don’t forget to go to the bank with all the requirements and USD, at least $20 or $50 but most banks charge $100 for first time deposit.
Banks that Open Dollar Accounts in Nigeria
This banks can help you get your Domiciliary Accounts without too much stress:
- UBA
- Zenith
- access
- GT bank
- fidelity
- firstbank
How to Deposit & Withdraw Dollars from Your Dollar Account
To perform any transaction in your Domiciliary account, just take a walk into the bank and tell the banker working on desk what you want wether you want to send money or withdraw they can help out , you don’t need to worry about using ATM because most banks in Nigeria do not authorize the use of Dollar Card on their Automated Machine.
Where to Get Dollar In Nigeria
Find where there is Aboki or alhaji probably hausa quarters in your state and tell them you want to buy dollar, they will ask you how many $$$ tell them and they will do the exchange give you dollar and college naira.
Can i Open a Dollar Account Online in Nigeria?
Yes, you can do it online but some bank will still want you to visit their branch so that they can collect your finger print biometric and dollar deposit, this means that the account will not be activated till you reach out to banking hall.
Challenges with International Bank Account and Solutions
- Delay transaction: sometimes the money sent to you will not drop immediately like it used to happen for naira account, do not panic it is normal, many dollar account takes 1 to 3 business days to process a transfer.
- Freezing: illegal money that enter the account can not be withdrawn, this is done to follow CBN rules.
- Transaction limits: you can be limited if you do up to 5 transfers in a day or so, that’s a clear example of the limitations, always check your bank and ask them your limit so that you will know on time.
Frequently Asked Questions (FAQs)
Can I open a dollar account without a BVN? — No, all request for dollar account opening requires BVN.
What is the minimum amount to open a domiciliary account? — $50 or or 100$ depend on the bank.
Can I receive PayPal funds into my dollar account? — yes, as long a the PayPal fund is legit and is USD.
Is it possible to open a dollar account as a student? — For sure, I did my own when I was a student in University of Uyo.
Can I withdraw my money in naira? — No, all foreign currency in Domiciliary account must be withdrawn in that currency, but if you wish you can ask your bank to convert it for you so that you can get it in naira notes.
Conclusion
The key steps to getting your dollar account in Nigeria is gathering all requirements your documents and files in one place then get someone to sign as reference or ask bank staff for help if you do not have anybody. It is very good decision to own at least one dollar account because it will allow someone to receive and send money internationally.
Select the best bank for this, ask for reviews from close friends or colleagues that have use dollar account and their experience with the bank so that you won’t go and choose wrong one that will be giving you issues
If you are already working online and you never get dollar account you are missing out some international deals it is better to open one now and stop limiting yourself to only local transactions, dollar account is a open doors to foreign business and payment.
I have took my time to put you through the entire process to open a dollar account in Nigeria, so choose the bank you like and start managing your foreign transaction in a smart way.