Domiciliary accounts in Nigeria: how they work and who needs one
A domiciliary account lets you hold dollars, pounds or euros at a Nigerian bank. How it works, what it costs and whether it suits your savings.
A domiciliary account, often called a "dom account", is a bank account in Nigeria that holds foreign currency, usually US dollars, British pounds or euros, rather than naira. Freelancers paid from abroad, people who receive money from family overseas, importers and those saving for school fees or travel abroad often find one useful. This guide explains how domiciliary accounts in Nigeria work, how to open one, how to receive money from abroad, and whether saving in dollars makes sense for you.
How a domiciliary account works
A domiciliary account works much like a naira account, except the balance stays in the foreign currency. You can receive transfers from abroad into it, hold the money, transfer it to another domiciliary account or overseas, and in some cases withdraw cash in that currency. Many banks offer both current and savings versions, and some pay a small amount of interest on savings. Some banks also offer foreign currency debit cards linked to the account, which can be useful for spending abroad.
Who needs a domiciliary account?
A dom account is most useful if you earn or spend in a foreign currency. Freelancers and remote workers paid in dollars can receive their income without converting it immediately. Families who receive support from relatives abroad can hold the funds until they need them. Parents paying tuition overseas can save in the same currency as the fees, removing the risk that a weaker naira makes the fees more expensive. Businesses that import goods also use them to manage payments to foreign suppliers.
Opening a domiciliary account
Most commercial banks offer domiciliary accounts. You will typically need a valid ID, your BVN, proof of address, a passport photograph and sometimes a reference or an existing naira account with the bank. Each currency usually needs a separate account. Ask the bank for its fees, minimum balance and any limits on cash withdrawals before you open one, as these differ between banks and can change with Central Bank of Nigeria rules.
Receiving money from abroad
To receive funds, the sender will need your account name and number, the bank's SWIFT code and sometimes details of a correspondent bank. International transfers carry fees at both ends, and intermediary banks may deduct charges, so the amount that arrives can be less than what was sent. For regular payments, compare banks and licensed money transfer services, which may be cheaper or faster. Always use licensed channels; informal currency dealers expose you to fraud and legal risk.
Is saving in dollars a good idea?
Holding some savings in a foreign currency can protect you against a fall in the naira, which matters if you have expenses in that currency, such as school fees abroad. But it also has costs and risks: converting naira to dollars and back loses money on each exchange, interest on domiciliary savings is usually very low, and the naira can strengthen as well as weaken. Rules on foreign currency can also change.
A balanced approach is to keep foreign currency for genuine foreign-currency needs and part of your long-term savings, rather than converting everything. Our guide to protecting your savings from inflation covers other options, and our naira exchange rates page tracks the currency.
Dollar investment options
If you want your foreign currency to earn more than a savings account pays, some SEC-registered fund managers offer dollar-denominated mutual funds, which invest in dollar bonds and similar assets. Check that the fund is registered, understand the fees and how withdrawals work, and remember that returns are not guaranteed. For naira savings, compare money market funds and Treasury bills.
Avoiding scams involving foreign currency
Be wary of anyone promising unusually high returns on dollar investments or offering exchange rates far better than the market. These are common features of fraud. Our guide on how to spot investment scams in Nigeria explains the warning signs.
Frequently asked questions
What is a domiciliary account in Nigeria?
A bank account that holds foreign currency, such as dollars, pounds or euros, instead of naira.
What do I need to open a dom account?
Usually a valid ID, your BVN, proof of address, a passport photo and sometimes a reference.
Do domiciliary accounts pay interest?
Some savings versions pay a small amount of interest, but it is usually very low.
Sources
This article is general information, not financial advice.