How to open a dollar account in Nigeria

How to open a dollar account in Nigeria

Before 2020, Nigerians and even foreign nationals dealing with Nigerian banks who want to receive any form of payment, whether for business purposes or simply transferring money from friends and family, must accept any form of payment in our local currency, Naira (NGN). 

In December 2020, new rules introduced by the Central Bank of Nigeria, brought a whole new dimension to domestic dollar transactions i.e. any form of international remittance into the country must also be in the form of US dollars (USD) as any form of international payment from within the country. 
 
Along with that, people must have a bank account  to deposit and  save foreign currency. These accounts are called dollar accounts or dollar accounts. 

If you are one of those people who have searched the internet for articles related to  opening a dollar account in Nigeria then don't skim anymore as this article will cover all about how to open a dollar account in Nigeria and at Why do you need a dollar account?

Requirements to open a bank account in dollars in Nigeria.

You can seamlessly go to most of the popular banks in Nigeria and open a US dollar account, as the steps to getting one are not tedious. While there may be slight differences in the requirements of different banks for opening an account, you will generally need to have the following: 
  • Complete account opening form 
  • An identification photo 
  • Invoices under 3 months 
  • Two completed reference forms 
  • Copy of  recognized identification (driver's license, international passport, national identity card or any other document acceptable to the bank). 

How to open a dollar account in Nigeria 

How to open a dollar account in Nigeria online 
 
Most banks give you the option of opening your dollar account online. The process is the same as opening a naira account. While the process can vary from  bank to bank, opening an online dollar account  will generally require you to complete the following steps: 
  • Visit the bank's website.  
  • Click on the account opening form and download it to your device.  
  • Fill in the necessary information in the form, such as your Bank Verification Number (BVN), registered phone number, date of birth, email address, etc.  
  • Once you've filled out the information, email the form to your bank's website. 

Dollar account types  

There are only two types of dollar accounts that you can operate in Nigeria: dollar savings bank accounts and dollar current  bank accounts. 

US Dollar Savings Bank Account: 

A dollar savings account allows you to save dollars and also withdraw them using a bank teller. 

Current dollar bank account: 

A dollar current bank account is like a regular checking account more suitable for businesses and business people. Just like a dollar savings  account, it can also be used to save dollars and withdraw dollars using a bank teller and it can also be used to issue checks to third parties.

Best banks to open dollar account in Nigeria.

You can work in most commercial banks in Nigeria and open a US dollar account. However, some banks excel over others because of the great benefits they bring to their customers and the services they provide. Some of the best banks where you can open a dollar account  are: 

Zenith Bank: 

When you talk about customer service delivery and efficiency,  Zenith Bank is one of the best banks in Nigeria. You can open a dollar account with Zenith bank without a penny (i.e. zero balance). Some of the features of a Zenith dollar bank  account are online and mobile banking, US Dollar (USD) debit card issuance, email and SMS alerts,  cash withdrawals of all kinds. 

Guaranteed Trust Bank (GTB): 

One of the best banks for dollar accounts in Nigeria. Their dollar accounts can be funded by cash receipts and deposits. Once you open a dollar bank account with GTBank, you can withdraw cash at any of its branches. Transfer funds to other dollar-denominated bank  accounts and you have 24/7 online banking. 

First Bank: 

Holds the title of  the first commercial bank in Nigeria. You can find your first dollar bank  account through cash deposits, travelers checks, or foreign currency deposits. 

United Bank for Africa (UBA): 

You can't talk about the best banks that offer dollar accounts in Nigeria without talking about  United Bank For Africa (UBA). It offers a favorable interest rate depending on the account balance. You are not subject to transfer and withdrawal fees. Honest Dollar Bank Account also provides online banking for  online business people. You can also receive bank statements and notifications via email/SMS. 
 

Fidelity Bank: 

This is one of the few banks in Nigeria that offers good service  for dollar accounts. Opening a dollar account with Fidelity Bank requires a minimum account opening balance of $50 and $30 is the minimum active balance. It offers good interest rates, internet banking and also email/SMS alerts.  

How much does it cost to open a dollar account in Nigeria? 

You can open a US dollar account for free at most banks, and most banks also offer free maintenance to their customers. However, many banks will require a minimum account opening balance of $100 to about $500. These rates vary from bank to bank, so you should check with your chosen bank to open an account. 

How to fund your US dollar account 

Funding your dollar account is as easy as depositing your naira account, although you cannot fund your US dollar account with Nigerian naira. You can fund your account in dollars by deposit or wire transfer.  

Deposit: You can only fund this account in US Dollars (USD) as it is a dollar account. You can  go to the bank and deposit cash at the counter, or have someone else  do it for you. 
 
Direct Transfer: This is good news for those who love doing business online, as you can get the dollars in your dollar account via direct transfer from anywhere in the world. 

How to withdraw money from your dollar account.

Although there are slightly different methods for the withdrawal process, banks generally follow the same pattern to ensure effective documentation. So, if you need to get money in your dollar account, the easiest way to withdraw money from your dollar account is to work at any branch of the bank where you have opened your dollar account. me. Upon arrival, let your bank's customer service department know your intentions and they will assist you in completing the withdrawal process. The general steps you will follow are most likely. 
  • Complete a check, bank teller or any other form provided by the bank for this purpose. 
  • Fill in the necessary information about the cashier such as name, amount and signature. 
  • Verify your identity with your Bank Verification Number (BVN) on the BVN portal/machine as well as confirm details such as signature and date on the check or cashier. 
Once these steps are completed and successful, the cashier will return the money to you. Please note that fees applicable to withdrawals in US dollars from bank accounts vary depending on the bank concerned. 

How to Convert US Dollars (USD) to Nigerian Naira (NGN)  

To be able to pay for goods and services, converting your dollars to your local currency (naira) will make your transactions easier  as most local businesses use  naira as a medium of exchange. After receiving money from the bank, you need to go to a Bureau de Change (BDC) office or someone near you to convert your dollars to naira based on the exchange rate at the specific time. Most money changers change these currencies using the black market rate, which will make you  more money if you are the one looking to change your dollars to naira.  Benefits of owning a dollar account 
 
With the increase in demand for US dollars (USD), owning a dollar account makes it easier for you to trade internationally, as the dollar is one of the most widely used currencies in the world. Some of these benefits include: 
  • Easy receiving of dollars directly from anywhere in the world. 
  • Easy sending of dollars from Nigeria.  
  • You can also act as a referee for someone. 

With the endless popularity of the US Dollar (USD) in the international market, the need for  a dollar bank account in Nigeria cannot be overemphasized. 

Having a dollar bank account is the best option for a business or people who want to conduct international transactions.

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