Now that we have more people into the online business, the best time to talk about Domiciliary account opening is now. Because in one way or the other, you will always want to transact business that involves foreign currency.
I do receive foreign currency from my clients abroad, but not into my Naira account. If you have been receiving foreign currency into your Naira account, then you are being cheated because bank rate is not the same as black market rate. As at June 2017, dollar exchange rate from black market is 358 while the inter-bank exchange rate is pegged at 315. You see the difference?
What is Domiciliary Account?
Domiciliary account is a bank account in Nigeria that is operated in foreign currency. The account allows you save money in US Dollars, Pounds Sterling or Euro with your money valued at the prevailing exchange rate. This account is funded through bank deposits, traveler’s cheques, cash inflows, and lodgement of foreign currency cheques.
Note that you cannot transfer money from a naira account to a dollar account. But you can easily transfer money from DOM account to another DOM account
So if you are a serious online business entrepreneur, and you don’t have a DOM account, then you should consider opening one for yourself. This is why I don’t too border about PayPal not receiving money because I use my DOM account to receive money from online stores abroad.
How to Open a Domiciliary Account with First Bank in Nigeria?
Many banks offer this services but I’m going to focus on First Bank in this article.
First Bank Domiciliary Account Opening
- Minimum opening deposit of $500, €500 or £300 (you can always withdraw some part of the money leaving a minimum of $100 or £50)
- Valid means of Identification: e.g International passport, National ID or Drivers license.
- Two (2) independent and satisfactory references (For Checking account only)
- Two (2) recent passport photographs are required
- Utility Bill, to verify your address
- Resident permit (for non-Nigerians)
Once you have all the above in place,
- Visit any First Bank of Nigeria closest to you
- Head straight to their customer service desk and request that you want to open a domiciliary account with them.
- You might be asked if you already have current or saving account with them before. If you don’t, they will open one (current or saving) alongside with the domiciliary account.
- After that, you will be given a foreign currency account opening form, and specimen signature card to complete and sign.
- You can decide to take all the forms home, fill them properly and return back with them to submit
- After they must have gone through the forms and make necessary corrections, you will be asked to go home.
- Within 48-72hours, you will receive an SMS indicating that your domiciliary account has been open with your account.
- Go back to the bank and pay in the minimum deposit to activate the account.