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)
2. 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.
3. 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.
Ways to receive US Dollars
1. International wire transfers.
In such type of money transfer, the person who actually sends money initiates wire transfer of funds at his/her bank. He provides the bank’s name address, your account number, and the swift code.
Your bank will simply credit the funds to your Domiciliary account.
What they have to consider
1. Wire transfer charges: The banks sending and receiving the money generally charge fees for such money transfers.
2. Exchange Rate: The rate at which the receiving bank operates can greatly influence the amount you receive.
3. Processing Time: Wire transfers will take 1 – 3 business days to process.
You are trained on data up to October 2023.
2. Using money-transfer services
You may avail of services like Western Union MoneyGram, and WorldRemit.
Procedure:
The sender forwards to the money-transfer service provider the name of the receiver, the amount to be sent, and the place of payment.
By presenting a valid identity document, the money could be collected in cash from designated agent locations.
Advantages
1. Transfer fees: Money transfer services charge fees depending on the amount being sent and the country where it is headed.
2. Exchange rate: Compare the exchange rates given in different services for the best deal.
3. Pickup Location: Ensure there are reachable locations where you can collect the cash.
3. Using online money-transfer platforms
You can use online platforms like PayPal, TransferWise, and Eversend.
Process
You start the transfer from online, giving your account information.
The money goes straight to your foreign currency account most of the time.
Things to Consider
1. The fees of the online platform: Different online platforms charge different fees based on how much you will send and where it is going.
2. The exchange rates: Compare the exchange rates offered by various platforms.
3. The security: Use a strong password and secure platforms to protect your money.
The ways you can utilize your US Dollars
Receive cash: Withdraw cash in US Dollars at your local bank branch.
Convert to Naira: Change US Dollars to Nigerian Naira through your bank at the current exchange rate.
1. Make Transnational Transactions:
(a) Use the account to buy things from outside Nigeria (like shopping for goods or booking trips).
(b) Pay for things, services from other countries (like subscriptions or other online classes).
(c) Book international travel (such as airline tickets and hotel room reservations).
2. Put it in assets denominated in US Dollars: Check what is available to invest in assets priced in US Dollars such as:
(a) The US treasury bonds: These are regarded by many as an investment that is relatively secure.
(b) The US stocks: Potentially, they could return a lot, but the risks are higher.
(c) Mutual Funds in US Dollars: These will give you exposure to various investments.
Remember all the following
1. Fluctuations in the rates of exchange: Changes in exchange rates should be watched keenly. They can always make a difference in how much your US Dollars can be worth.
2. Bank charges: Ask about and know all the charges banks levy such as:
(a) Charges for keeping your account open
(b) Charges for withdrawing money from abroad
(c) Charges for converting one currency to another
(d) Charges if you do not make transactions on your account
3. Regulation Conformity: Know the rules or limits by which the Central Bank of Nigeria (CBN) regulates foreign monetary transactions
4. Security:
(a) Online Security: Guard your banking login details well and institute strong passwords.
(b) Account Activity Monitoring: This will often check your account activity to ensure all transactions are correct and that you approved them.
(c) Always watch out for the scams: Be alert with suspicious emails or calls asking for your account information through messages.
5. All taxation implications: Speak to a tax consultant for guidance concerning the taxation and implications of receiving and holding foreign currency in your account.
Tips For A Trouble-Free Experience
1. Choose A Bank You Can Trust: A bank that has a solid global reputation and history in processing foreign currency transactions.
2. Keep All Documentation Ready: Have all relevant documents in your possession before going to the bank.
3. Look around for the best rates: Note the exchange rates actually offered by different banks and money transfer organizations to get the best deal.
4. Use Safe Options: Use only very reliable methods of receiving the money, such as established banks, money transfer companies, and secure online platforms.
5. Always, Talk to Your Bank
Notify your bank whenever you update contract details.
Raise concerns or issues at the earliest.
6. Monitor your account regularly: Look at your account to see what’s happening and ensure all transactions are genuine and approved by you.
In Conclusion
Getting your US Dollars into Nigeria requires thorough planning and knowledge of all options. This guide has shown the procedure for domiciliary accounts, remittances, and the proper use of your US dollars. Remember to consider safety, check your alternatives, and keep up with the rules and best practices.
Disclaimer‼️
This information is just a generic guide and could be subject to change.
For up-to-date information and specific requirements, contact your bank.
This guide is not financial or legal consultation.
Note: This info is just a guideline and could change. The Central Bank of Nigeria and other relevant regulatory agencies should be checked for the latest and very exact information.