A complete guide on how to receive US dollars in Nigeria 2025

In order to receive US dollar in Nigeria, you need to understand very well, how the financial system works. This guide gives you a detailed explanation and the key aspects involved in setting up the type of account needed to receive US dollar in Nigeria from United States of America.

First things to know 

1. Getting to Know Domiciliary Accounts

What’s a Domiciliary Account?

A domiciliary account is a type of bank account that serves as a main tool to receive and hold the foreign currencies US Dollars, in Nigerian banks.

While the regular naira accounts handle local transactions, domiciliary accounts focus on foreign currencies, like USD, Pounds, etc.

Benefits of a domiciliary account

1. The direct reception of money

Domiciliary account makes it easy to receive money from outside of the country, including,from foreign employers (salaries, money sent home),from family and friends in other countries,from international businesses (payments for goods and services),from online businesses (payments from clients around the world)

2. It makes the international transactions easier Domiciliary account simplifies buying and paying across borders such as:

(a)The buying of things from online stores in other countries

(b)The making of payment for travel (booking flights, reserving hotels)

(c)The payment for international business (imports, exports)

2. It increases your income through currency appreciation:

Having a domiciliary account gives you a chance to make some money if the US Dollar becomes more valuable than the Nigerian Naira.

3. It exposes the owner to more investment opportunities:

Domiciliary account offers a way to invest and make more money in things priced in the US Dollars, like US treasury stocks.

Things involved in opening a domiciliary account in Nigeria

1. Choosing the right bank

(a)The bank’s reputation and stability.

Pick a trusted bank with a huge international reach and a good history of handling foreign currency deals.

(b)Foreign Exchange Rates.

Look at exchange rates from different banks to get good rates for getting and changing currencies.

(c)The fees and The charges.

Ask about fees like account upkeep, receiving your money, and changing of currency.

(d)The digital banking capabilities.

Go for a bank with strong online presence and a good mobile banking tools to manage your bank account and send money abroad .

(e)The customer service.

Go with a bank known to help customers well and answer questions .

2. Gather the required documents

(a) Proof of Identity

These are the valid ID options used in Nigeria . They include.

International Passport

National ID Card

Driver’s License

Voter’s Card

NIN (National Identification Number)

(b) The proof of address

The recent bills for utilities like electricity, water, internet.

The receipt for your house rent.

Your driver’s license showing address.

(c) A passport photograph

The current photo of passport size and it should not be more than a year old.

(d) The Proof of income

Pay check, tax forms, documents showing your business registration

3. Going to a bank branch

Head over to the nearest bank of the bank branch you picked with all the required documents and fill out the form to open an account.

A bank worker will check your info and then help you apply.

4. The activation of bank account

Once your verification checks out, your account will be activated and you will get your account information, which includes

(a) Account Number: Your unique account ID.

(b) Bank Name and Address: The full name and location of the bank.

(c) Swift Code: A special code that pinpoints your bank for international money transfers.

The main ways of getting US Dollars

1. Through International wire transfers

This means that the person sending money will start a wire transfer at their bank. They will give your bank’s name address, your account number, and the SWIFT code.

Your bank puts the money straight into your domiciliary account.

The things you need to consider 

1. The wire transfer fees: The sending and receiving banks often charge fees for wire transfers.

2. The exchange rates: The rate the receiving bank uses can greatly affect the amount you get.

3. The processing time: Wire transfers take 1 to 3 business days to process.

2. The use of money transfer services

Use services like Western Union MoneyGram, and WorldRemit.

Process:

The sender gives the money transfer service provider your name, the amount to send, and where you want to receive it.

You can get the money in cash at specific agent locations by showing valid ID.

The things you need to consider 

1. The transfer fees: Money transfer services charge fees based on how much you send and where it’s going.

2. The exchange rates: Look at exchange rates from different services to get the best deal.

3. The collection locations: Check if there are easy to reach pickup spots near you.

3. The use of online money transfer platforms

You can use online platforms like PayPal, TransferWise, and Eversend.

Process

You start the transfer online by giving your account info.

The money often goes straight to your foreign currency account.

The things you need to consider 

1. The platform fees: Online platforms charge different fees based on how much you will send and where it’s going.

2. The exchange rates: Compare the exchange rates that different platforms offer.

3. The security: Make sure to use secure platforms and strong passwords to keep your money safe.

How you can spend your US Dollars

Get the cash: Take out US Dollars in cash from your bank branch.

Change to Naira: Switch US Dollars to Nigerian Naira at the current exchange rate through your bank.

1. Do International Transactions:

(a) Use your account to buy things online from other countries (like shopping or booking trips).

(b) Pay for services from other countries (like subscriptions or online classes).

(c) Book international travel (like plane tickets or hotel rooms).

2. Put the money in US Dollar assets: Look into the chances to invest in assets priced in US Dollars such as:

(a) The US treasury bonds: People see these as safer investments.

(b) The US stocks: They might make more money but come with bigger risks.

(c) The US dollar based mutual funds: These will spread your money across different investments.

Always bear the following in mind

1. Changes in exchange rates: Watch out for shifts in exchange rates. They can affect how much your US Dollars are worth.

2. Bank fees: Ask about and get to know all the fees banks charge such as:

(a) Fees to keep your account open

(b) Fees for getting money from overseas

(c) Fees for changing one currency to another

(d) Fees if you don’t use your account

3. Following the Rules: Learn about any rules or limits the Central Bank of Nigeria (CBN) has on dealing with foreign money.

4. Security:

(a) Online Security: Guard your online banking login details and use strong passwords.

(b) Account Monitoring: Check your account activity often to make sure all transactions are correct and you approved them.

(c) Always watch out for the scams: You should be careful of suspicious emails, calls, or messages asking you for your account information.

5. The tax implications: Talk to a tax expert to learn more about the tax and the effects of receiving and keeping a foreign currency in your account.

Tips for a Smooth Experience

1. Pick a Trusted Bank: Go with a bank that has a big global presence and a good track record in handling foreign money deals.

2. Get All Your Papers Ready: Make sure you have all the needed documents on hand before you go to the bank.

3. Look and compare the exchange rates: Check out the exchange rates that different banks and money transfer services offer so that you can get the best deal.

4. Use safe ways to get your money: Pick trustworthy ways to receive funds, like well known banks, money transfer services, and safe online platforms.

5. Always talk to your bank

Tell your bank if you changed your contract information.

Ask about any worries or problems right away.

6. Check your account often: Keep an eye on what is happening in your account to make sure that all the transactions are correct and you you are the one that approved them.

To wrap up

Getting US Dollars in Nigeria needs planning and knowledge of your choices. This guide shows you how to set up a domiciliary account, get money , and use your US Dollars well. Keep in mind to focus on safety, look at all your options, and stay up-to-date on rules and best ways to do things.

 

Disclaimer‼️

This info is just a general guide and might change.

Check with your bank to get the latest info and specific needs.

This guide is not financial or legal advice.

Keep in mind: This info serves as a general guide and might

change. Check the Central Bank of Nigeria’s official website and other key regulatory bodies to get the most current and precise details.