FOREIGN CURRENCY (DOMICILIARY ACCOUNTS) ACT
Act · Trade
An Act authorises Nigerians and foreign residents to hold foreign currency accounts in Nigerian banks for legitimate transactions. It targets individuals, companies, banks, and regulatory authorities involved in foreign exchange. This facilitates trade and investment while curbing illegal activities.
FOREIGN CURRENCY (DOMICILIARY ACCOUNTS) ACT
What Is This Policy?
An Act authorising Nigerians and foreign residents to hold foreign currency denominated bank accounts (domiciliary accounts) in Nigerian banks, enabling legitimate holding and transactions in foreign currencies.
Who Does It Target?
Nigerian individuals and companies holding foreign currency Banks operating domiciliary accounts CBN as the regulatory authority International traders and investors
What Does It Aim to Achieve?
Enable legitimate holding of foreign currencies in Nigerian banks to facilitate trade, investment, and remittances while preventing illegal capital flight.
Key Features
Account Authorisation: Provides legal basis for domiciliary accounts in Nigerian banks. Account Types: Covers accounts in major currencies including USD, GBP, and EUR. Usage: Account holders may use domiciliary accounts for eligible foreign currency transactions. CBN Oversight: CBN regulates domiciliary accounts through its foreign exchange guidelines.
Current Status
Rollout Stage: Active Coverage: Nationwide banking sector Beneficiaries: Traders; investors; diaspora remittance recipients Funding: Not applicable
How to Access
Open a domiciliary account at any commercial bank with supporting documentation Fund account through legitimate inflows: remittances, export proceeds, transfers Domiciliary account funds can be used for eligible foreign currency payments Application method: Open at any CBN-licensed commercial bank.
Important Terms
Domiciliary accounts do not require CBN approval for routine transactions Large withdrawals may require supporting documentation Cash USD deposited must meet CBN anti-money laundering requirements
Official Resources
Website: https://www.cbn.gov.ng Contact: Central Bank of Nigeria (CBN)
Legal Framework
Enacted under the legislative powers of the National Assembly as the Foreign Currency (Domiciliary Accounts) Act. Operates alongside the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act, the Central Bank of Nigeria Act 2007, the Banks and Other Financial Institutions Act (BOFIA) 2020, and the Money Laundering (Prevention and Prohibition) Act 2022. Aligns with FATF Recommendations on foreign currency account monitoring and the IMF Article VIII on current account convertibility.