7 Best Banks to Open a Domiciliary Account in Nigeria

A domiciliary account is a bank account that is denominated in a foreign currency. This means that the money in the account is not in Nigerian naira, but in a foreign currency such as the US dollar or the British pound.

Domiciliary accounts are a popular option for Nigerians who do business internationally or who receive income from abroad. There are many benefits to opening a domiciliary account in Nigeria.

To assist you in making an informed decision, we’ve compiled a comprehensive guide to the 7 Best Banks to Open a Domiciliary Account in Nigeria.

What to Know About Domiciliary Accounts in Nigeria

Domiciliary accounts are foreign currency-denominated accounts that allow Nigerians to hold foreign currencies in local banks.

These accounts serve various purposes, including facilitating international transactions, safeguarding foreign earnings, and protecting your wealth from currency devaluation. Here’s what you need to know about domiciliary accounts in Nigeria:

1. Currency Options: Domiciliary accounts can be denominated in various foreign currencies, such as US Dollars, Euros, British Pounds, and more. This diversity allows you to choose a currency that aligns with your international financial activities.
2. Eligibility: To open a domiciliary account in Nigeria, you must have a standard savings or current account with the bank of your choice. Additionally, you’ll need to provide proof of a legitimate source of foreign income or financial transactions, which may include remittances, business deals, or online freelancing income.
3. Documentation: The documentation requirements vary from one bank to another, but generally include proof of identity (national ID card, international passport, or driver’s license), a utility bill as proof of address, and a recent passport-sized photograph.
4. Minimum Deposit: Different banks have different minimum deposit requirements to open a domiciliary account. Be sure to inquire with your chosen bank to determine the specific amount you need to deposit.

How Much Does It Cost to Open a Domiciliary Account in Nigeria?

The cost of opening a domiciliary account in Nigeria may include the following fees:

1. Account Opening Fee: This is the initial fee you pay when opening the account. It varies from bank to bank and may range from a few hundred to a few thousand naira.
2. Minimum Deposit: As mentioned earlier, a minimum deposit is required to open a domiciliary account. The amount varies among banks, so check with your chosen bank for their specific requirements.
3. Annual Maintenance Fee: To keep your domiciliary account active, you’ll need to pay an annual maintenance fee. This fee also varies by bank and can range from a few to several hundred dollars.
4. Currency Conversion Fees: You may incur currency conversion fees when you deposit or withdraw foreign currency. These fees are typically a percentage of the amount being converted.
5. Transaction Fees: Depending on your bank, you may also be charged transaction fees for activities such as wire transfers, check issuance, and account statements.

It’s important to compare these costs across different banks to find the one that best suits your needs and budget.

The Benefits of Domiciliary Accounts in Nigeria

Now that you have a better understanding of how domiciliary accounts work and what it costs to open one, let’s explore the numerous benefits they offer:

1. Currency Diversification: Domiciliary accounts allow you to hold multiple foreign currencies in a single account. This can help you hedge against currency devaluation and take advantage of favorable exchange rates.
2. International Transactions: If you conduct business or make international purchases, a domiciliary account makes it easier to send and receive payments in foreign currencies, saving you the hassle and costs of currency conversion.
3. Protection from Naira Devaluation: In Nigeria, the local currency, the Naira, can experience significant fluctuations in value. Holding your money in a foreign currency can help protect your wealth from such devaluations.
4. Access to Global Investments: With a domiciliary account, you can invest in foreign stocks, bonds, and other assets, diversifying your investment portfolio and potentially earning higher returns.
5. Secure Savings: Foreign currencies are often considered a more stable store of value than the Naira. This makes domiciliary accounts an attractive option for long-term savings in a more secure form.
6. Easy Remittances: If you receive remittances from family members or friends abroad, a domiciliary account simplifies the process by allowing them to transfer funds directly into your account.
7. Travel Convenience: When traveling abroad, you can access your funds directly in the currency of your destination, avoiding the need to exchange money at potentially unfavorable rates.

The 7 Best Banks to Open a Domiciliary Account in Nigeria

Choosing the right bank for your domiciliary account is a crucial decision. To help you with that, we’ve compiled a list of the seven best banks in Nigeria for opening a domiciliary account, based on various factors such as account features, fees, customer service, and reputation:

1. Access Bank

Access Bank is one of the largest banks in Nigeria, with over 20 million customers. The bank offers a wide range of financial products and services, including domiciliary accounts.

Access Bank’s domiciliary accounts are available in US dollars, euros, and pounds sterling. The bank offers competitive rates and fees for its domiciliary accounts, and it also offers a variety of features and benefits, such as online banking and mobile banking.

2. Zenith Bank

Zenith Bank is another large Nigerian bank that offers domiciliary accounts. Zenith Bank’s domiciliary accounts are available in US dollars, euros, pounds sterling, and other major currencies.

The bank offers competitive rates and fees for its domiciliary accounts, and it also offers a variety of features and benefits, such as online banking and mobile banking.

3. First Bank

First Bank is one of the oldest and most established banks in Nigeria. The bank offers a wide range of financial products and services, including domiciliary accounts.

First Bank’s domiciliary accounts are available in US dollars, euros, pounds sterling, and other major currencies. The bank offers competitive rates and fees for its domiciliary accounts, and it also offers a variety of features and benefits, such as online banking and mobile banking.

4. United Bank for Africa (UBA)

UBA is a pan-African bank with operations in over 20 countries. The bank offers a wide range of financial products and services, including domiciliary accounts.

UBA’s domiciliary accounts are available in US dollars, euros, pounds sterling, and other major currencies. The bank offers competitive rates and fees for its domiciliary accounts, and it also offers a variety of features and benefits, such as online banking and mobile banking.

5. Guaranty Trust Bank (GTBank)

GTBank is one of the most popular banks in Nigeria. The bank offers a wide range of financial products and services, including domiciliary accounts. GTBank’s domiciliary accounts are available in US dollars, euros, pounds sterling, and other major currencies.

The bank offers competitive rates and fees for its domiciliary accounts, and it also offers a variety of features and benefits, such as online banking and mobile banking.

6. Stanbic IBTC Bank

Stanbic IBTC Bank is a joint venture between Standard Bank Group and IBTC Chartered Bank. The bank offers a wide range of financial products and services, including domiciliary accounts. Stanbic IBTC Bank’s domiciliary accounts are available in US dollars, euros, pounds sterling, and other major currencies.

The bank offers competitive rates and fees for its domiciliary accounts, and it also offers a variety of features and benefits, such as online banking and mobile banking.

7. Diamond Bank

Diamond Bank is a commercial bank in Nigeria. The bank offers a wide range of financial products and services, including domiciliary accounts. Diamond Bank’s domiciliary accounts are available in US dollars, euros, pounds sterling, and other major currencies. The bank offers competitive rates and fees for its domiciliary accounts, and it also offers a variety of features and benefits, such as online banking and mobile banking.

Conclusion

Choosing the right bank for opening a domiciliary account in Nigeria is a pivotal decision that can significantly impact your international financial transactions.

The exploration of the seven best banks in this blog post has provided valuable insights into their fees, and customer service, enabling you to make an informed decision based on your unique financial needs.

FAQs

Can I open a domiciliary account with a foreign passport in Nigeria?

Yes, you can open a domiciliary account with a foreign passport in Nigeria. Domiciliary accounts are designed for individuals and businesses who need to hold foreign currencies in their bank accounts. To open a domiciliary account, you will need to provide the following documentation:

• A valid passport or other government-issued identification document
• A utility bill or other proof of residence
• A bank statement from your home country
• A completed account opening form

What are the currency options for domiciliary accounts in Nigeria?

The currency options for domiciliary accounts in Nigeria vary depending on the bank, but the most common currencies are:

• US Dollars (USD)
• Euros (EUR)
• British Pounds (GBP)
• Canadian Dollars (CAD)
• Swiss Francs (CHF)

Some banks may also offer domiciliary accounts in other currencies, such as Japanese Yen (JPY), Australian Dollars (AUD), and South African Rand (ZAR).

The specific currency options for domiciliary accounts will be displayed on the bank’s website or in their branch. You can also contact the bank directly to inquire about their currency options.

Can I use my domiciliary account for online transactions and shopping from international websites?

Yes, you can use your domiciliary account for online transactions and shopping from international websites. Domiciliary accounts are designed to allow you to hold and transact in foreign currencies, making them ideal for making payments to international merchants and websites.

When using your domiciliary account for online transactions, you will typically be charged a foreign transaction fee by your bank. This fee is a percentage of the transaction amount and is typically around 2-3%. Additionally, the exchange rate at the time of the transaction will be applied.