Imagine a freelance designer in Abuja who has just landed her first dollar client. The client asks for her account details, she opens a domiciliary account in a hurry, and three weeks later she finds that the bank took charges she never expected and that her payment came in with a delay she can't explain. None of that was a scam. She simply didn't ask the right questions first.
This guide gives you those questions. Rules and charges on foreign currency accounts differ by bank and change over time, so I won't quote fees or limits here. Instead you'll get a checklist you can take to a branch, a call centre or a bank's help chat, and a way to compare the answers.
What a domiciliary account actually is
A domiciliary account is a bank account held in a foreign currency, most commonly US dollars, though some banks also offer pounds or euros. You can usually fund it with foreign transfers, and in many cases with foreign currency cash or by converting naira, depending on the bank's policy.
It is useful for three kinds of people: freelancers and remote workers paid in dollars, families receiving money from relatives abroad, and people who pay for foreign tuition, subscriptions or travel. If you are simply hoping to protect savings from naira weakness, read our guide to saving in naira vs dollars first, because holding dollars has its own costs and risks.
Other countries: Ghana, Kenya and South Africa all have foreign currency accounts, but names, permitted deposits and reporting rules differ from Nigeria's. If you live there, use the questions below but check them against your own central bank and bank.
Step 1: Decide what the account is for
Your answers to the later questions only make sense once you know your use. Write down one sentence, for example: "Receive about $300-$800 a month from two overseas clients and move part of it to naira." Common purposes:
- Receiving client payments: you care most about how money arrives (wire, platform payout, payment processor) and how quickly you can convert it.
- Receiving family support: you care about transfer routes and who can send.
- Paying abroad: you care about card access and online payment limits.
- Holding savings: you care about cash deposits, withdrawals and account fees.
Step 2: Questions about opening the account
- Which account type is offered? Ask whether it is savings or current, and which currencies are available.
- What documents do I need? Expect your BVN and NIN to be asked for, plus ID, proof of address and passport photos. Ask whether a referee or a minimum opening deposit is needed.
- Can I open it fully online? Some banks allow it in an app; others require a branch visit.
- Is there a minimum balance? And what happens if I fall below it?
- Is the account linked to my existing naira account? Linking usually makes conversions easier.
Never lend your BVN, NIN or account to another person so they can receive money, and never use someone else's. That causes frozen accounts and can expose you to fraud investigations.
Step 3: Questions about money coming in
This is where most freelancers get surprised. Different sources reach the account differently, so ask about each one you will use.
- Do I get account details for receiving international wires? Ask for the full details, including the correspondent or intermediary bank, if any.
- Do you accept payouts from the platforms I use? Name them: your freelance marketplace, payment processor or client's payroll provider. Banks sometimes reject or delay certain routes.
- Are there incoming transfer charges? Ask for the charge in dollars and whether the sender or I pay it. Intermediary banks can also deduct their own fees before the money reaches you.
- How long does a typical incoming transfer take? And what do I do if it hasn't arrived?
- What proof will you ask for? Banks may ask for an invoice, contract or purpose of payment for larger inflows. Keep these documents honestly and in order.
- Can I receive transfers from other Nigerian banks in dollars? Policies vary.
Step 4: Questions about getting money out
An account you can fund but can't easily use is a poor account. Ask:
- How do I convert to naira, and at what rate? Ask whether the rate is set by the bank, and compare it with what other banks offer on the day. Don't rely on a rate someone told you months ago.
- Is there a charge for conversion or for transfers to my naira account?
- Can I withdraw dollars in cash? If yes, is there a daily or monthly limit, a notice period, or a fee? Many branches don't hold much cash, so ask how it works in practice.
- Can I send dollars to another account abroad? What is the outgoing wire fee?
- Can I make transfers from the app, or only in a branch?
Step 5: Questions about cards and online spending
If you want to pay for software, courses or travel from the account, ask whether the bank issues a dollar debit card or virtual card linked to it. Then ask about the annual card fee, any per-transaction fee, spending limits, and whether the card works for subscriptions and international merchants. If a card can only be funded by converting naira, it isn't really spending your dollar balance.
Step 6: Questions about fees and protection
- What are all the recurring charges? Account maintenance, statement fees, SMS alerts, card fees and any charge on credits or debits.
- Do I earn interest on the balance? Ask for the current rate in writing. Many dollar accounts pay little or nothing.
- Are deposits covered by deposit insurance? Ask what is covered and up to what amount; the bank or the Nigeria Deposit Insurance Corporation can confirm.
- How do I get a statement or a letter confirming my account? You may need this later for visas, school applications or business proof.
- What do I do if a transfer is blocked or my account is restricted? Get the name of the support channel.
A worked example (hypothetical)
Say Tunde earns $400 a month from a UK client. Bank A charges a fee on each incoming wire and offers a daily conversion rate. Bank B has no incoming fee but converts at a rate that is less favourable. These numbers are made up to show the method.
| Item | Bank A | Bank B |
|---|---|---|
| Payment received | $400 | $400 |
| Incoming fee | $10 | $0 |
| Dollars left | $390 | $400 |
| Conversion rate offered | ₦1,500 per $1 | ₦1,470 per $1 |
| Naira received | ₦585,000 | ₦588,000 |
Here Bank B wins by ₦3,000 despite the weaker rate, because the fee outweighs the rate difference. With a different amount or a card fee on top, the result could flip. The point is to compute the final naira figure for your real monthly amount, not to judge on one fee.
Common mistakes to avoid
- Opening the account before the client pays. Test the route with a small payment first, if the client agrees.
- Giving a wrong name or details. The name on the account must match your ID and your client's records. If yours differs across documents, fix it first; our guide on name mismatches may not be linked here, so check your NIN and BVN records at your bank.
- Keeping everything in dollars. Your rent, data and food are in naira. Convert what you need for the next one to three months and decide on the rest deliberately.
- Trusting "dollar account" offers from strangers. Anyone who asks you to receive money for them, or promises returns on dollars, is a risk. Report it to your bank.
- Ignoring records. Save invoices, contracts and statements. They help with bank queries and tax filing.
If you receive money from family abroad
Your priorities are different: ask which sending apps and transfer services the bank accepts, whether the sender needs your full account details, and how fast funds can reach you. Our post on managing family finances back home covers the planning side from the sender's end.
Frequently asked questions
Can I open a domiciliary account without a job?
It depends on the bank. Many ask about the source of funds, so be ready to explain it honestly, with documents where you have them.
Is a domiciliary account the same as a dollar card?
No. The account holds the money; a card is a tool for spending it, and may or may not draw from the dollar balance. Ask which.
Can I have more than one?
Often yes. Some freelancers keep one at a traditional bank and another at a digital bank to compare speed and fees. Don't open several without a purpose, as they all need tracking.
Do I need to pay tax on dollars I earn?
Income is generally taxable whatever the currency. Rules change, so confirm with the Federal Inland Revenue Service or a qualified tax adviser.
Your next step
Pick two banks, call or chat with each, and ask the questions in Steps 3 and 4 for your own payment source. Write down the answers and compute your final naira amount for a typical month. Then open the account with the better result.
This article is for general information only and is not financial, legal, or tax advice. Prices, rates and rules change quickly, so check current details before making money decisions.