If you are an individual or business person who sends and receives funds from outside the country, you must know how sending and receiving money into a domiciliary account in Nigeria works. With the restrictions and ban on Nigerians on e-payment solutions like PayPal, the need to make and receive payments in a foreign currency using a domiciliary account is vital. This type of account is easy to open, maintain and use, depending on the bank and their requirements.
One major advantage of having a domiciliary account is that you own accounts that allows you receive currencies in foreign denominations like Dollars, Euro, Pounds, Yen, etc. Other types of bank accounts in Nigeria accept only the Naira currency. To pay money into your dom account, you can either do it via traveler’s cheques, cash deposits or through foreign currency cheque deposits.
HOW TO RECEIVE MONEY INTO DOMICILIARY ACCOUNT IN NIGERIA EASILY
There are various ways of receiving money into your domiciliary account easily. This is dependent upon the bank, website, payment gateway or even through Western Union transfer.
The following are the information you would need to provide to whoever wants to send money into your domiciliary account in Nigeria:
- The Dom account number
- Full name used in opening the account.
- The name of the bank receiving the funds.
- The address of the bank branch where the funds will be transferred.
- The routing number which is a nine-digit code that will used to identify the bank.
- Swift BIC Code.
HOW TO SEND MONEY INTO DOMICILIARY ACCOUNT IN NIGERIA EASILY
If you want to send money into your account, you can directly go to the bank with the foreign currency and easily make a deposit into your domiciliary account or via online banking. No matter the bank, the steps are usually similar. To be certain that you have received the funds, the bank usually sends you a bank alert on whatever transaction you do in your domiciliary account. You can also withdraw directly from the local bank by filling the foreign currency withdrawal slip.
WHERE TO CHANGE FOREIGN CURRENCY ($) TO NAIRA (₦)
If you are looking for best place to change you US Dollar, Euros, Pounds or any foreign currency to Naira, you can change it at the Bureau De Change. It’s at this place where you can either sell or buy various currencies. You can also choose to meet Aboki as they are littered around banks. You only have to be careful because some are fraudulent.
BENEFITS OF OPENING A DOMICILIARY ACCOUNT IN NIGERIA
There are many advantages of opening a dom account in Nigeria. These benefits include:
ABILITY TO RECEIVE FOREIGN CURRENCIES INTO YOUR ACCOUNT
This is one of the major problems we face in Nigeria when trying to send or receive foreign currencies. If you don’t have a domiciliary account, the bank will convert the foreign currency to your local currency at the official CBN rate which is way far lower than the black market rate. Most people love to withdraw over the bank counter and change their monies at the black market rate which is normally higher. As of writing this post, 1 USD equals to ₦480.
INTERNATIONAL TRANSACTION PAYMENT
With a domiciliary account, you have the ability to make International transactions. This is possible with the aid of your dollar MasterCard which you should request from your bank. It’s this card that you would use to pay for items or services on international e-commerce sites like Amazon.com, ebay.com, Alibaba, etc. As an online business individual, the benefit of having a domiciliary account as a blogger can’t be underestimated.
HAVING CONTROL OVER YOUR FOREIGN CURRENCY
Since the Nigerian Naira hasn’t been steady, it’s wise to open a dom account where you can save your foreign currencies. The Naira exchange rate has always been a thorn in the flesh for importers who import from abroad which causes hike in prices of commodities. With a well funded domiciliary account, this makes it easy to have control over your money as you can buy and carry out foreign transactions easily as you like.
TO SAVE YOUR FUNDS
This is the main reason why people open any type of account and having a dom account isn’t different either. You only have to find out the best banks to open a domiciliary account in Nigeria before you proceed. While we have written extensively on that, note that these banks will allow you to save in US Dollars, Pounds Sterling, Euro or any other foreign currency.
As seen above the benefits of having a domiciliary account outweighs it’s disadvantages. Having the ease to send and receive funds in foreign currencies is why opening a domiciliary account in Nigeria is very important. The only pitfall to this type of account is the maintenance involved as some Nigerian banks charge for maintaining this type of account. Also, in opening a dom account, you might be required to have the minimum of $100 before such account can be able to active and do certain transactions of receiving funds in international currencies.