This article is a detailed guide on how to cash a foreign cheque in Nigeria. If you desire to know how to go about this, then I will encourage you to read on.
Most Nigerians have learned over time about different ways of making money online. While some Nigerians have read our best guide on how to make your first $100 online in Nigeria through this link, and have already started making lots of money online, others are still passive about the whole internet stuff.
However, the category of Nigerians that mostly have the need of dealing with foreign cheques are those that have learned how to make money through clickbank in Nigeria.
This is so because clickbank only sends you cheque which you are expected to cash out later on. Whether you are a clickbank affiliate marketer or not, I will show you how you can successfully convert the amount on your foreign cheque into cash right here in Nigeria.
However, cashing such cheques in Nigeria has for long been a major problem for some due to lack of information on the methods//procedures needed in receiving and cashing out a foreign cheque in Nigeria.
Aside these groups of people, some have even missed big opportunities online simply because the payment method offered for such jobs/tasks are different from the one they are conversant with (PayPal, Payoneer, etc)
That’s why in this post, we’ll break down the whole procedure to follow if you want to receive and cash a foreign cheque in Nigeria.
A foreign cheque will be mailed to you here in Nigeria through any of the couriers companies such as DHL, UPS, etc and delivered at your office or residential address. After this, what next? That’s what we will find out presently. But before then,
WHAT IS A FOREIGN CHEQUE?
A foreign check (Here in Nigeria) is a cheque in foreign currency usually sent from outside the country to a beneficiary here in Nigeria. E.g cheques in Pounds, Cheques in Dollar, Cheques in Euro etc.
These cheques can be cashed at any bank here in Nigeria using the procedure that I will be revealing right now. Just ensure you read to the end.
To cash a foreign cheque (be it Dollar, Euro or Pounds) here in Nigeria, you will need to have a domiciliary account with any of your preferred bank in Nigeria.
It’s the domiciliary account that you will use to cash your cheque after it has been confirmed by the bank.
WHAT IS A DOMICILIARY ACCOUNT?
This is a type of account that allows you to operate an account in other currencies other than the Naira. So many Nigerians use this account to cash their foreign cheques.
With a domiciliary account, you can make deposits through cash, foreign cheques, or traveler’s cheque. You can equally withdraw funds from your domiciliary account here in Nigeria conveniently.
So basically, the first thing you will need to cash a foreign cheque in Nigeria is to have a domiciliary account with any of the local banks. Don’t have a domiciliary account yet? Follow the next step on how to open a domiciliary account in Nigeria.
TYPES OF DOMICILIARY ACCOUNTS
Just like a regular bank account, there are types of domiciliary account. You should go for the one that best suits your needs.
- Dollar domiciliary account
- Euro domiciliary account
- Pound domiciliary account
- Savings domiciliary account
- Current domiciliary account
HOW TO OPEN A DOMICILIARY ACCOUNT IN NIGERIA
To open a domiciliary account, visit the nearest branch of your preferred bank and request for a domiciliary account opening form.
The bank will request for the following documents/information from you:
- Two passport photographs
- Valid means of identification (National Identification Card, Voter’s Card, Driver’s License or International Passport)
- Utility bill (NEPA Bill)
- Two references
NOTE: These requirements might be more or less depending on the bank you approach for a domiciliary account and or the type of account you want to open.
Once you’ve provided all the needed requirements and complete the verification process, your domiciliary account will be opened.
HOW TO CASH A FOREIGN CHEQUE WITH YOUR DOMICILIARY ACCOUNT
To cash your cheque here in Nigeria with your domiciliary account, all you need do is to walk into any branch of the bank you have a domiciliary account with.
Lodge the cheque into your domiciliary account by filling a deposit teller. After that, you will have to wait for about 14-16 working days for it to be cleared before you can access your cash.
The duration of time required to clear a foreign cheque varies from one bank to the other.
HOW TO WITHDRAW MONEY FROM YOUR DOMICILIARY ACCOUNT
After your cheque has been cleared and the money deposited into your account, the next thing will be for you to withdraw your cash. Isn’t that so?
This sometimes get annoying because, despite having the money deposited in your domiciliary account, you might still not be able to withdraw it.
Some common reasons why you might not be allowed to withdraw money from your domiciliary account include:
*The current accounts of the references are not active etc.
These issues often arise if the references you presented are not customers of the bank you’ve opened a domiciliary account with.
That’s why it’s always advisable to get references that have an account with the same bank you want to open a domiciliary account with.
So from the point of opening your account, ensure that all your references have been verified long before you will need to withdraw your cash in order to avoid disappointments and unnecessary delays.
But if everything is correct, here are the methods you can use to withdraw cash from your domiciliary account here in Nigeria without delays. You can make withdrawals through:
- The counter
- With a cheque
- A written application
- The ATM
- Wire transfer
HOW TO WITHDRAW AT THE COUNTER
Just like making withdrawal inside the banking hall. You will have to fill a foreign currency teller, submit to the bank staff at the counter and wait to be given your cash.
HOW TO WITHDRAW WITH A CHEQUE
Just write a cheque (with the same format you normally use for your regular current account) to make withdrawal from your account.
You can get the money paid to you over there at the counter or paid into another domiciliary account.
HOW TO WITHDRAW THROUGH A WRITTEN APPLICATION
To make withdrawal using this method, you will need to write an application for a withdrawal.
The application should be addressed to the branch manager of the bank where you want to withdraw the money at.
Once that is done, you will be paid (your cash) the same day or within 48 hours.
HOW TO WITHDRAW AT THE ATM
To make withdrawal from your domiciliary account via the ATM, your account will need to be linked with a Master or Visa card with which you can use to withdraw your money from any ATM (that accepts the card you are using) here in Nigeria.
HOW TO WITHDRAW USING WIRE TRANSFER
You can easily transfer from your domiciliary account to another account both for local and international money transfers.
This, just like every other method comes at a fee. It will take about seven working days for the funds to be transferred.
THINGS TO NOTE ABOUT DOMICILIARY ACCOUNT IN NIGERIA
The withdrawal charges imposed by banks on their domiciliary accounts vary so you should do a due-diligence before deciding on which bank to open account with.
There are different types of domiciliary accounts just the same way we have different types of regular accounts.
It is not compulsory to have a current account before you can open a domiciliary account. The minimum requirement is a savings account
You can transfer funds from your domiciliary account to your regular bank account. However, this will be done at your bank’s exchange rate. That means the chances that you will be short changed are high.
Most (if not all banks) have a COT charges on their domiciliary account
You can withdraw in the same currency as your domiciliary account. For instance, if your account is a Dollar domiciliary account, you can withdraw from the account in Dollars instead of Naira.
Converting your foreign cheque in Nigeria into cash is something you can easily do once you have a domiciliary account. How much does it take to cash out a foreign cheque in Nigeria is entirely dependent on the bank involved. But now that the exchange rate of foreign cheques in Nigeria could be so high at times.
So if you are expecting a cheque from any of your foreign business partners, you can go on now and open a domiciliary account and get your references verified even before your cheque arrives.
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