As a Foreigner, can I open a Bank Account in Nigeria?
The above is one question that resonates a lot through Nigeria’s banking institutions and queries. Many foreigners are interested in opening Bank accounts in Nigeria, and they are asking numerous questions regarding how they can open a Bank account in Nigeria. Anyway, the short answer to the above question is yes, a foreigner can open a bank account in Nigeria. However, there are requirements, and those requirements eclipses the short answer we gave above.
As a foreigner, what do I need to open a Bank account in Nigeria?
The answer to this largely depends on whether you wish to open a personal bank account or a corporate bank account for your company. For a foreigner that wish to open a personal account, then such a foreigner is expected to apply for and obtain a National Identification Number (NIN), Bank Verification Number (BVN) and have a valid residence permit to live and work in Nigeria.
If a foreigner wishes to open a corporate account in Nigeria, then the foreigner can only do this upon registering a limited liability company in Nigeria with the Corporate Affairs Commission. Thereafter, the company can apply to any one of Nigeria’s numerous retail Banks for an account. We will cover the requirements below as we progress with this article.
Types of Bank accounts a Foreigner can Open in Nigeria
A foreigner who meets the necessary criteria can open these types of accounts in Nigeria:
Domiciliary Account:
A domiciliary account is a type of account operated with a Nigerian bank which is not denominated in Naira, but rather a foreign currency of the account opener’s choice. The choices usually range between US dollars, Euros, and Pounds sterling. Holders of this type of account can hold and transact in the foreign currency of that account. It is usually ideal for people who transact internationally or receive cash inflows from other countries into Nigeria.
Personal Account:
A foreigner who meets the necessary criteria can open a personal savings account with any Nigerian bank of their choice. This account can even be a domiciliary account if the account opener so wishes.
What do I need as a foreigner to open a personal account in Nigeria?
As a foreigner, you need the following:
- Valid means of identification
- Passport photograph
- Tax ID
- BVN
- References where applicable
- Proof of residence
- Minimum account balance (this depends on the Bank of your choice)
- NIN
What if I do not or I cannot provide these requirements?
As a foreigner, you really need to provide all the required details and documentation before any Bank will agree to open an account for you in their institution. Nigerian institutions try to be extremely careful, particularly in relation to financial matters. On your part, you explore other alternatives to opening an actual bank account in Nigeria.
Alternatives to explore to open a personal bank account in Nigeria
As a foreigner, you can use Banking alternatives if operating a Nigerian account is quite important to you and you really need account access to Naira for your transacting needs. Wise for a convenient multi-currency account you can open and use to monitor and transact in across Naira, dollars and other currencies of your choice. There are other alternatives asides Wise, but it might be worth looking into.
Can a non-resident foreign company open an account in a Nigerian Bank?
We have asked numerous banks this same question and the answer has been a resounding NO. Nigerian banks typically do not open an account for foreign companies that do not have a Nigerian presence or subsidiary. This simply means that a foreign company cannot open an account in Nigeria. If any such company intends to open a Bank account with a Nigerian Bank, then such a company is required to become a registered Nigerian entity. It will be required to register as a Nigerian company first and become a Nigerian entity, then the directors of the Nigerian entity can proceed to apply to open a Nigerian bank account.
Checklist of documents foreign-owned Nigerian companies require to open bank accounts in Nigeria
- Valid means of identification of the directors/signatories
- Passport photograph of the directors/signatories
- Company Tax ID
- BVN
- SCUML (Where applicable)
- Certificate of Incorporation from the Corporate Affairs Commission
- Certified copies of the Memorandum and Articles of Association of the company
- Certified copies of the Status Report of the company (Form CAC 1.1)
- Two (2) references
- Recent utility bill not less than 3 months from the time of application
- Comprehensive details of directors of the company
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