How To Make Transactions Into Domiciliary Account In Nigeria (2025)
If you’re an individual or business that frequently sends and receives funds internationally, understanding how to manage transactions into a domiciliary account in Nigeria is essential. With the limitations on e-payment platforms like PayPal, utilizing a domiciliary account for foreign currency transactions has become increasingly important. This guide outlines how to open, maintain, and use a domiciliary account effectively.
What is a Domiciliary Account?
A domiciliary account allows you to hold and transact in foreign currencies such as US Dollars, Euros, Pounds, and Yen, unlike regular bank accounts that only accept Naira. Depositing funds into your domiciliary account can be done through various methods, including cash deposits, foreign currency cheque deposits, and traveler’s cheques.
How to Receive Money into Your Domiciliary Account
Receiving money into your domiciliary account can be done in several ways, depending on the bank or service used. Here’s what you need to provide to the sender:
- Domiciliary Account Number: Your account number for the transaction.
- Full Name: The name you used to open the account.
- Bank Name: The name of your bank.
- Bank Branch Address: The specific address of the branch where your account is held.
- Routing Number: A nine-digit code identifying your bank.
- SWIFT/BIC Code: This code is necessary for international transfers.
How to Send Money into Your Domiciliary Account
To send money to your domiciliary account, you can either visit your bank to make a direct deposit in foreign currency or use online banking services. Regardless of the method, banks generally provide transaction alerts to confirm the deposit. You can also withdraw foreign currency directly from your account using a withdrawal slip.
Where to Change Foreign Currency to Naira
If you need to convert foreign currency like US Dollars or Euros to Naira, you can do this at a Bureau De Change. These establishments allow you to buy or sell various currencies. Alternatively, you can also find currency traders (known as “Aboki”) near banks, but ensure you are cautious of potential fraud.
Benefits of Opening a Domiciliary Account in Nigeria
- Receive Foreign Currencies: A domiciliary account allows you to receive funds in foreign currencies without conversion to Naira, which can save you from unfavorable exchange rates.
- International Transactions: You can conduct international transactions easily using a dollar MasterCard, enabling payments on global e-commerce platforms such as Amazon or eBay.
- Control Over Foreign Currency: Holding foreign currencies in a domiciliary account allows you to manage your funds more effectively, especially given the volatility of the Naira.
- Savings in Foreign Currency: You can save in currencies like US Dollars, Pounds Sterling, or Euros, providing a hedge against inflation and currency devaluation.
Conclusion
The advantages of having a domiciliary account far outweigh any disadvantages, especially for those needing to send and receive foreign currency. However, it’s important to be aware of potential maintenance fees and the requirement for a minimum balance (often around $100) to activate the account. Choosing the right bank for your domiciliary account is crucial, so ensure to research the best options available in Nigeria before proceeding.
