How To Open a Dollar Account in Nigeria
Prior to 2020, Nigerians and even foreign Nationals banking with Nigerian banks who had to receive any form of payment be it for business purposes or just remittances from friends and family had to accept any form of those payments in our local currency which is the Nigerian Naira (NGN).
In December 2020, new rules were introduced by the Central Bank of Nigeria that brought about a whole new facet in Dollar transactions in the country, meaning any form of international remittance coming into the country had to be in the form of US dollars (USD) likewise any form of international payments from the country.
With this, there was a need for residents to own a bank account that can be used to send and also save foreign currency. These accounts are called dollar accounts or domiciliary accounts. If you are among those that have been searching the net for posts related to opening dollar accounts in Nigeria then surf no more as this post will cover everything concerning opening a dollar account in Nigeria and why should own a dollar account.
Requirements For Opening a Dollar Bank Account in Nigeria
You can walk easily walk into most major banks in Nigeria and open a US dollar account as the steps to own one isn’t cumbersome. While there may be slight differences in the requirements of different banks for opening the account, you generally will be required to be in possession of the following:
- A complete account opening form
- One passport photograph
- A utility bill not older than 3 months
- Two completed reference forms
- A copy of a recognized ID (Driver’s License, International passport, National I.D Card, or any other acceptable by the bank).
How To Open a Dollar Account In Nigeria Online
Most banks offer the option for you to open your dollar account online. The process is the same as opening a naira account. While the steps may vary from one bank to another, opening a dollar account online will generally require you to go through the following steps:
- Visit the bank website.
- Click on the account opening form and download it to your device.
- Fill in the information as needed on the form like your bank verification number (BVN), registered phone number, date of birth, email address etc.
- Once you have filled them out, email the forms to the bank’s website.
Types Of Dollar Accounts
There are only two types of dollar accounts you can operate in Nigeria: they are savings dollar bank accounts and current dollar bank accounts
Savings dollar bank account:
A savings dollar account allows you to save dollars and also withdraw them using a bank teller.
Current dollar bank account:
A current dollar bank account is like a regular current account more suited to businesses and business people. Just like the savings dollar account, it can also to used to save dollars and withdraw dollars using a bank teller and it can also be used to issue checks to a third party.
Top Banks To Open a Dollar Account In Nigeria
You can work into almost any commercial bank in Nigeria and open a US dollar account. However, some banks are more excellent than others due to the great benefits they offer to their clients and the services they render. Some of the top banks you can open a dollar account with are:
- Zenith Bank: When you talk about customer service delivery and efficiency, then Zenith Bank is up there with the best in Nigeria. You can open a dollar account with Zenith bank without a penny ( I.e zero balance). Some of the features of a Zenith bank dollar account are internet banking and mobile banking services, issuance of US dollar (USD) debit cards, Emails and SMS alerts, and cash withdrawals.
- Guarantee Trust Bank (GTB): One of the top banks when it has to do with dollar accounts in Nigeria. Their dollar accounts can be funded through cash inflows and deposits. When you open a dollar bank account with GTBank, you can carry out cash withdrawals from any of its branches. Funds transfer to other bank dollar accounts and you have 24/7 internet banking services.
- First Bank: Holding the title of being the first commercial bank in Nigeria. You can find your first bank dollar account via cash deposit, traveller’s cheque or foreign cash deposit.
- United Bank for Africa (UBA): You can’t have a conversation about top banks offering dollar accounts in Nigeria without talking about the United Bank For Africa (UBA). It offers a favourable interest rate depending on the account balance. You incur Zero charges for transfers and withdrawals. Fidelity bank dollar accounts offer internet banking too for those who are into online business. You can also get bank statements and Email/SMS alerts.
- Fidelity Bank: This is one of the few banks in Nigeria that offers good service delivery for dollar accounts. Opening a dollar account with Fidelity bank requires a minimum account opening balance of $50 and $30 as the minimum operating balance. It offers good interest rates, internet banking, and also email/ SMS alerts.
How Much Does It Cost To Open a Dollar Account In Nigeria
You can open a US dollar account In most banks for free and most banks also offer free maintenance services to their clients. However, many banks will require a minimum account opening balance of between $100 to about $500. These prices differ with respect to the bank so it is advisable to check with the bank which you choose to open the account with.
How To Fund Your US Dollar Account
Funding your dollar account is just as easy as funding your naira account although you can’t fund your US dollar account with Nigerian naira. The ways you can fund your dollar account are through deposit or transfer.
- Deposit: You can only fund this account with US dollars (USD) since it is a dollar account. You can either go to the bank and make the counter cash deposit or get someone else to do it for you.
- Direct transfer: This is good news for those who are into online business as you can receive dollars into your dollar account via direct transfer from anywhere in the world.
How To Make a Withdrawal From Your Dollar Account
While There are slightly varying ways in the process of withdrawal, banks generally follow the same pattern to ensure efficient documentation. So, if you’re to receive money into your dollar account the easier way of withdrawing money from your dollar account is to work into any branch of the bank you opened your dollar account with. On arrival make your intentions known to the bank customer service and assistance will be given to you on how to go through the process of withdrawal. The general steps you will go through will most likely be.
- Completing a check, a bank teller or any form provided by the bank for such purpose.
- Filling out the necessary information on the teller like name, amount and signature.
- Verification of your identity using bank your bank verification number (BVN) on the BVN portal/machine alongside confirmation of details like the signature and date on the check or teller.
Once these steps are completed and successful your cash will be released to you by the teller. Please note that the charges that apply for US dollar withdrawal on bank accounts differ with respect to the bank involved.
How To Convert US Dollars (USD) To Nigerian Naira (NGN)
To be able to pay for products and services, converting your dollar to the local currency (naira) will make transactions easier for you as most local businesses use the naira as their medium of exchange. After getting your money from the bank, you will have to proceed to Bureau De Change (BDC) office or a person near you to convert your dollar to naira based on the exchange rate at that particular time. Most Bureau De Change offices change these currencies using the black market rate which will give you far more profit if you are a person looking to convert your dollars to naira.
Benefits Of Owning a Dollar Account
With the increase in demand for the US dollar (USD), owning a dollar account gives you ease when making international transactions as the dollar is one of the most widely used currencies in the world. Some of those benefits include:
- Ease in receiving dollars direct from anywhere in the world.
- Ease in remitting dollars from Nigeria.
- You can also serve as a referee for someone.
With the never-ending popularity of the US dollar (USD) In the international market, the need for one to own a dollar bank account in Nigeria cannot be over-emphasized. Owning a dollar bank account is the best pick for a business or someone that wants to carry out an international transaction.
