A TimesNow.com.ng reader is seeking advice on the options available to receive funds from abroad without a domiciliary account.
The TimesNow.com.ng reader, who preferred anonymity, wrote:
Victoria Adebisi boasts over six years of experience as a customer representative in the banking sector, coupled with valuable insights gained from working across various departments.
Receiving money from abroad is as easy as getting cash from within Nigeria. A customer can either open a domiciliary account or use third parties, known as International Money Transfer Operators (IMTOs).
A domiciliary account enables you to receive, send, and transfer foreign payments using your local bank. To open an account, a customer must provide all necessary documents. Some banks charge at least $100 to open an account, while others require your identification and a referee with a current account.
On the other hand, IMTOs do not require any account opening; you only need identification. Some of these IMTOs include Western Union, WorldRemit, and Sendwave.
The main difference between domiciliary accounts and IMTOs is that a customer can get paid directly into the domiciliary account, which can then be withdrawn from the bank’s counter for exchange.
For IMTOs, all that is needed is to send a local bank account number to the sender, who will then send their full name, country of residence, and the reference number of the transaction.
Upon the arrival of the funds, the receiver will receive a notification and will need to go to the bank. They will be given a slip to fill in the information, including the reference ID.
It is important to note that payments from IMTOs can only be received in naira using the prevailing exchange rate. In contrast, a domiciliary account holder can withdraw funds in the same currency the money was sent in.
Disclaimer: Advice given in this article is general in nature and is not intended to influence readers’ decisions about solving issues of threats. Readers should always seek their own professional advice that takes into account their own personal circumstances before making any decision.
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Meanwhile, TimesNow.com.ng earlier reported that the Nigerian government and the Central Bank of Nigeria addressed reports about potential plans to convert funds in domiciliary accounts into naira.
The report had suggested that the move would help the naira recover in the foreign exchange market and increase forex supply in Nigeria.
Over $30 billion is reportedly idle in accounts across various Nigerian banks, including Access Bank, GTBank, UBA, Zenith Bank, and others.
Proofreading by James Ojo Adakole, journalist and copy editor at TimesNow.com.ng.
Source: TimesNow.com.ng
