Can i transfer naira to my domiciliary account? Explained
Can i transfer naira to my domiciliary account? How possible would it be to transfer money from a naira account to a domiciliary account.
This i will explain in this article.
Domiciliary account in Nigeria is the only way or means to save funds in foreign countries here in Nigeria. As there is a bigger difference between the official CBN/bank exchange rate and the black market exchange rate, the need to have a domiciliary account increased in Nigeria.
Again, as cbn imposes a limit to all banks naira mastercard to just $200 or $300 spending limit, online shoppers and those that usually make payment online try to find a solution to this.
And that is through having a domiciliary account.
Once you have a domiciliary account in Nigeria, you can request for a dollar card which you can use for online payment.
It’s not all about opening a domiciliary account but rather funding the account and this is where the problem lies for people especially those that don’t receive funds from abroad or the online shoppers.
Some might think that it is quite possible to transfer money from naira account to a domiciliary account, and the money will automatically be converted into USD dollars.
This brings us to the question of the day.
Can i transfer naira to my domiciliary account?
You cannot transfer naira to a domiciliary account in Nigeria, but rather you can only transfer dollar, Euro, pounds and yen to a domiciliary account.
I noticed that people usually think it quite possible to transfer money from their naira account to their domiciliary account in order to fund it, but I’m sorry to disappoint you as it is not possible to transfer naira to a Dom account.
If you are looking for a way to fund your domiciliary account, I will explain the means which you can do that.
Let’s proceed to that.
1. Exchange at the black market and transfer to your Dom account
Talking about can i transfer naira to my domiciliary account, one of the best ways to fund a domiciliary account in Nigeria is by exchanging naira to dollar at the black market.
This requires you to withdraw your fund from your naira account, locate any black market or aboki around you and exchange the naira to dollar
Instead of you to collect cash from the black market sellers, you will request they should transfer the money to your dollar account. For me this is the best way to exchange cash with the black market instead of collecting cash from them.
Now once they aboki or the black market seller has successfully transferred the money into your domiciliary account, right there try to make a $1 purchase from your domiciliary account though it is possible if you have a dollar debit card.
Why I’m saying this is to confirm that truly the black market seller or the aboki successfully transferred the money into your dollar account and not just a fake alert.
Nevertheless, if you can detect between original and fake dollar then there’s no need going through this process. Kindly collect the dollar bill from the black market seller and deposit it into your domiciliary account.
2. Through transfer
Going by the question of the day can i transfer naira to my domiciliary account, and which signifies a way to fund a domiciliary account, transfer is another means of funding a domiciliary account.
Direct transfer is another means of funding a domiciliary account in Nigeria and it is very convenient for both parties involved compared to getting cash from the black market sellers though they too offer domiciliary account transfer.
However, there’s a restriction imposed by banks when it comes to transferring funds from a Dom account to another Dom account.
What restriction I’m talking about?
You cannot transfer money from your domiciliary account to another bank account which is not the same bank with you.
For example, you have a domiciliary account with gtbank and you want to transfer money to another domiciliary account with zenith bank, it won’t work at all. You can only transfer money from your gtbank domiciliary account to another gtbank domiciliary account, or zenith bank Dom account to another zenith bank Dom account.
That’s how it works.
If you have a Dom account with gtbank and wants to transfer money to a zenith bank Dom account, I’m sorry that is not possible and the only solution is to withdraw the money and make a direct deposit into the zenith bank Dom account.
The last but not the least:
3. Receive money through inflow
Inflow is another means of funding a domiciliary account in Nigeria though it is only when you receive money from from abroad. Quite a large number of Nigerians do receive money through inflow straight into their domiciliary account instead of their naira bank account.
Go through this page to learn more about inflow.
Can dollar be sent to Nigeria account?
Yes, dollar can be sent to a Nigeria account through domiciliary account or the naira account.
However, if dollar is sent to a domiciliary account in Nigeria it will still remain in dollar but if sent to a naira account, the money will be automatically converted to naira using the bank exchange rate which is very low compared to the black market exchange rate.
So the best way to receive dollar into a Nigeria bank account is by opening a domiciliary account in Nigeria and funding dollar into the account.
When there’s a need for a withdrawal the person will withdraw the money from the bank, go to any black market or bureau de change and change the dollar to naira.
As at the time of writing this post, the black market exchange rate is $1 to N567, while the bank rate is $1 to 411.
If you want to exchange $1k to naira using the black market rate, that will be N567,000 respectively. Now if you want to receive the $1k into your naira account and which will automatically be converted into naira using the bank exchange rate of $1 to N41, it will be N411,000.
At the end of the day, you will see that you lost a whopping N156,000
This is why the need to have a domiciliary account in Nigeria is important especially those that receive funds from abroad.
I do hope to have answered the question of the day can i transfer naira to my domiciliary account. If you are still confused I’m open to all your comments.