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

Before you can receive US dollar in Nigeria successfully, you must gain a proper insight into the workings of the financial system. This guide will explain all in detail with regard to the setting up of an account through which this type of transaction is possible for the recipient of US dollars in Nigeria from the United States.

Things to Know First 

1. Learn About Domiciliary Accounts.

What Is a Domiciliary Account?

A domiciliary account is a bank account mainly used to receive and hold foreign currencies such as US dollars in Nigeria. While naira accounts cater for local transactions, domiciliary accounts are for foreign currencies like USD, Pounds, etc.

Benefits of Domiciliary Accounts

1. Direct reception of funds

Setting up and operating a domiciliary account facilitates the direct transfer of money into Nigeria, such as salary payments by foreign employers or any remittances from family and friends abroad, payments from international businesses, or from online businesses for services and goods sold.

2. Simplification of international transactions Domiciliary accounts serve to ease buying and payment across foreign borders, such as

(i) Buying goods from online stores in foreign countries

(ii) Paying for travel (bookings for flights and hotels)

(iii) Paying in overseas business (imports and exports)

3. Currency appreciation means increasing your income:

With a domiciliary account, you have an opportunity of making some money when the US Dollar appreciates over the Nigerian Naira.

4. It gives the owner more investment opportunities:

A domiciliary account gives a means of investing and profiting from transactions done on things valued in US Dollars such as US treasury stocks.

Requirements for opening a domiciliary account in Nigeria

1. Choice of Bank

(a) Reputation and Stability of the Bank:

Pick a bank that can be trusted and has great international stature and good history in dealing with foreign currency transactions.

(b) The Foreign Exchange Rates:

Review other banks for a good rate on getting and changing currencies.

(c) The fees and The charges:

Inquire about other charges, including account maintenance fees, charges for receiving your money, and currency conversion fees.

(d)The digital banking capabilities:

Opt for a bank with prominent net presence and a good mobile banking app to manage your bank account and do remittances to foreign land.

(e)The customer service:

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

2. Gathering the needed documents

a) Proof of identification

Valid forms of ID in Nigeria comprise:

-International Passport.

-National ID Card.

-Driver’s License.

-Voter’s Card.

-NIN (National Identification Number)

b) Proof of residence

-Recent utility bills like electricity, water, or internet.

-Receipt of house rent.

-A driver’s license with an address on it.

c) One passport photograph

Current passport photograph not older than one year.

d) Proof of Income

Paychecks, tax forms, or in cases of self-employed persons, any documents that prove registration of their business.

3. The bank

Go to the designated bank with all the required documents to fill your account registration form.

A bank official will then access the information and help you with the application.

4. Bank account activation

Depending on the verification of your documents, the full activation of your account will happen, and you will be granted account details consisting of:

(a) Account Number: Your unique account ID.

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

(c) Swift Code: Is a unique code distinguishing your specific bank for international transfer.

How to receive US Dollars

International wire transfer.

Here the individual makes wire transfer of funds at his/her bank. He provides name address of bank, your account number, and the swift code. Your bank simply credits the funds to your Domiciliary account.

What they need to consider

1. Wire transfer fees: There are usually charges from the sending bank and the receiving bank for these money transfers.

2. Exchange Rate: The exchange rate of the receiving operating bank will directly affect the amount of money you receive.

3. Processing time: Wire transfers will be credited within 1 – 3 business days.

Using money-transfer services

You can utilize services like Western Union MoneyGram, and WorldRemit.

Procedure

The sender gives to the money-transfer service provider the name of the payee, the remittance amount, and the remittance point.

Once a valid identification document is produced, the cash could be picked up in cash from agent retail centers.

Advantages

1. Transfer fee: Money transfer companies charge a fee based on the amount to be remitted and the destination.

2. Exchange rate: You can shop around for various exchange rates from various services with a view to getting the best quotation.

3. Pickup Location: There are supposed to be convenient points from where you can pick up the cash.

Using money-transfer websites online

Online platforms such as PayPal, TransferWise, and Eversend can be utilized.

Process

You make the transfer online and input your account details. Your foreign currency account is sent over directly in most cases.

Things to Consider

1. Online platform commission: Online platforms charge varying commissions based on how much you are sending and to whom.

2. The exchange rates: Compare exchange rates on different platforms.

3. The security: Secure password and secure platforms to secure your money.

Methods through which you can spend your US Dollars

-Get cash: Withdraw US Dollar cash from your branch bank.

-Exchange to Naira: Exchange US Dollars into Nigerian Naira from your bank at the current exchange rate.

-Make Cross-Border Transactions:

(a) Spend the account on foreign items (e.g., good shopping or trip booking).

(b) Purchase goods, foreign services (e.g., subscription or other online classes).

(c) Sponsor foreign trips (e.g., airfare and hotel booking).

Invest in US Dollar quoted instruments: Think what you can invest in US Dollar quoted instruments like:

(a) The US treasury bonds: They are considered by most to be a fairly secure investment.

(b) The US stocks: Perhaps, they may give you a lot, but at a higher risk.

(c) US Dollar denominated Mutual Funds: These will lead you to other investments.

Remember all the following

1. Volatility of exchange rates: Rate change variations need to be assessed properly. They will certainly have some impact on what value your US Dollars can carry.

2. Bank fees: Read and collect all bank fees, including:

(a) Holding fee for account

(b) Withdrawal fee in foreign currency

(c) To convert one currency into another (conversion fee)

(d) Overdraft fees if you don’t make any transaction on your account

3. Compliance with regulation: Know the regulations or thresholds under which monetary foreign exchange transactions are regulated by the Central Bank of Nigeria (CBN)

4. Security:

(a) Security Online: Be extremely careful with your banking login details and possess good robust passwords.

(b) Account Activity Monitoring: This will generally take care of your account activity so that all your transactions are proper and you sanctioned them.

(c) Be always on the lookout for frauds: Don’t go in for dubious calls or letters asking for your account details through messages.

5. All tax implications: Take a tax consultant to talk about taxation and implications of having and accepting foreign currency in your account.

Tips To Avoid Stress Experience

1. Choose A Good Bank: A good foreign reputation bank and foreign exchange experience.

2. Get Ready: Make sure you carry all the documents with you before going to the bank.

3. Get the Best Rate and compare rates: Compare the rates provided by different banks and money remitters really to you so that you can get the best offer.

4. Use Safe Means: Use very safe ways of getting the money, such as good banks, money transfer shops, and secure websites.

5. Always, Talk to Your Bank

Inform your bank whenever you make any changes in contract information. Complain or report problems earliest.

6. Account Checked Regularly: Check your account to observe what is happening and if all transactions are genuine and have been approved by you.

In Conclusion

Converting your US Dollars to Nigeria needs foresight and knowing everything that exists. The above steps have set up the domiciliary accounts, remittances, and making profit on your US dollars. Plan safely, think over your alternatives and by regulations and best practice.

Disclaimer

Steps above are general guideline only and subject to change.

Please inform your bank for latest information and personal details.

This is not a legal or financial advisory.

Notice: The statistics and facts used are only a guide and may vary. The Central Bank of Nigeria and other sponsoring regulatory agencies should be contacted to obtain up-to-date and most reliable information.