How To Open A Domiciliary Account in Nigeria To Cash Your Online Payments

If you participate in online income earning projects like free online paid surveys, Internet and affiliate marketing, Google Adsense, blogging, online article writing jobs, Online Forex trading and so on; you’ll need a domiciliary account here in Nigeria to enable you cash your foreign currency denominated checks (cheques) or receive money from people outside the shores of Nigeria.

But what is a domiciliary account? A domiciliary account is a special type of account in foreign currency such as US Dollars or UK pounds opened in a home bank that allows you to make international bulk expense in form of bank wire transfer for services or goods online. A domiciliary account is also an account which allows you to be paid in any foreign currency of your choice. Any earnings or proceeds from your online business transactions will be deposited directly or through a check (cheque) issued in your name which is payable into a domiciliary account. With the frequency at which businesses are being run online these days, a domiciliary account is highly necessary to enable you cash the money you’ll make from your online projects. Foreign cheques and drafts from a foreign land can only be paid into a domiciliary account. Most commercial banks in Nigeria usually use 15 working days to clear your check (cheque) and credit your account with your money but in some cases it may take up to 21 working days.

A domiciliary account can be setup with any bank here in the country, usually in different currencies, such as the US Dollar, Euro, or the UK Pounds Sterling. This will enable the owner of the domiciliary account to receive any foreign currency directly into his bank account without having to convert it into the local currency. But there are usually different account numbers given with respect to each currency.

Besides using a domiciliary account for doing business online, it is also quite easier to send money directly into the bank account of any relative outside the shores of one’s own country if you operate a domiciliary account. Only a token amount of money is charged in most cases. Owning a domiciliary account also helps when travelling abroad, as one can withdraw in the currency of the country where one finds his or herself.


Types of Domiciliary Accounts

Current Domiciliary Account and Savings Domiciliary Account are the two basic types of domiciliary accounts being operated by our banks here in Nigeria. Current Domiciliary account is operated like a normal current account, however, you are issued a cheque booklet denominated in US Dollars. The minimum balance is usually $100 in most banks here in Nigeria. No cheque booklet is issued for Savings Domiciliary account.

Basic Requirements for Opening a Domiciliary Account in Nigeria

The requirements for opening a domiciliary account varies from one bank to another here in Nigeria, but the basic things you must have are given below:

1. TWO referees who have operated normal current accounts for at least 6 months with the bank or any other bank in Nigeria. Usually it is better and faster to get referees from the same bank so that the confirmation can be done promptly. In some cases with some banks, you’ll need TWO REFERENCE LETTERS from people who know you well and also have a domiciliary account with the bank you want to open a domiciliary account with.

2. TWO recent passport size photographs.

3. A utility bill that bears an address that corresponds to the one you would like to use as your contact address with the bank. The utility bill should not be more than 3 months old. Examples include PHCN bill, bill from your water supply corporation, fixed line or fixed wireless phone bill, Lagos Waste Management Authority (LAWMA) bill, and so on.

4. A form of identification like a Driver’s License, National Identity Card, International Passport, Tax Clearance Certificate, or even a voter’s registration card for proper identification.

5. An initial deposit of about $100 or £50 for minimum balance. You might be charged some additional fee for MasterCard or VisaCard.

**For those who already have a current account with a bank like GTBank, all you need to open a domiciliary account is TWO passport size photograph, a Driver’s License or National ID Card and other important documents as maybe required by GTBank Nigeria Plc.


Which Banks Operate Domiciliary Account In Nigeria?

There is a growing list of banks operating domiciliary accounts here in Nigeria. Many of the big commercial banks here in Nigeria operate domiciliary accounts, particularly banks like GTBank (Guaranty Trust Bank), Zenith Bank, ECOBANK, Access Bank, UBA (United Bank for Africa), Diamond Bank, First Bank, ETB (Equitorial Trust Bank), FCMB (First City Monument Bank), and StanbicIBTC. The list is by no means complete, nor does the order of the banks indicate any preference or affiliation. You should carefully make enquiries from the banks, compare fees, rates and then go for the one that suits you most.