Today, in this article, you will get to know the requirements to buy US dollars directly from Nigerian banks.
Do Banks in Nigeria sell Dollars?
According to the new CBN policy, you should be able to buy dollar at any bank branch in Nigeria, but this will be subject to availability and individual banks might direct customers to a special branch if the need arises.
Banks in Nigeria are required to sell dollars to both account holders and walk–in customers 18 years and above with a valid means of identification.
Presently, most banks only deal with the three major world currencies: US Dollar, British Pounds and the Euro.
And as long as the quarterly limit for PTA/BTA is not exceeded, you can buy all three currencies (Dollar, Pound, Euro) at the same time.
If you’re traveling to any country outside the United States, UK and Europe, buy the dollar which you can easily convert to the currency of where you are going.
Can I buy Dollars from the Central Bank of Nigeria?
CBN is an apex bank that regulates the activities of all commercial banks in Nigeria.
You can’t buy dollars directly from the Central Bank of Nigeria because it isn’t a commercial bank.
Only BDC can access dollars and forex directly from the CBN through a presentation of the CBN cheque issued by their banks twice a week (Tuesdays and Thursdays).
Individuals or speculators do not have such access.
Note: The CBN exchange of dollar to Naira differs completely from what you get on the streets.
How do Nigerian Banks sell Dollars?
Presently, you can buy dollars from any of the licensed commercial banks in Nigeria, regulated by the Central Bank of Nigeria.
Dollars can be sold to Nigerians for these reasons:
- Personal Travel Allowance
- Business Travel Allowance
- Foreign Medical Treatment
- Abroad Tuition Fees Payment
A good advantage of buying US dollars from a commercial bank in Nigeria is that you can buy them at almost the same price as the official exchange rate, which is cheaper than the parallel exchange rate, also known as the black market.
When you enter a bank, you see a message board showing how much the bank is buying and selling each foreign currency for.
The maximum amount for personal travel allowance is $4,000, while the maximum amount for business travel allowance is $5,000.
Requirements to Buy Dollars from Nigerian Banks
Here are the eligibility requirements to buy USD from banks in Nigeria:
- When requesting a PTA/BTA payment, you must present a completed Form A, a valid Nigerian passport, a valid visa, an international round-trip ticket (the date of travel cannot be over 14 days from purchase in dollars).
- A minimum flight time of 5 hours is required to apply for a PTA/BTA departing from Nigeria.
- All BTA applicants must submit registration/establishment documents and an invitation letter from their overseas business partner.
- Individuals requesting payment of tuition fees abroad must be the parent/legal guardian of the student or the student himself.
- Applicants for tuition payment must present a valid BVN, applicant ID, admission letter, completed Form A and payment receipt.
You can get US dollars from any bank in Nigeria in the same way as any other foreign currency.
However, this depends on the availability of US dollars in the bank.
If the bank doesn’t have or doesn’t have enough dollars to sell you, they can refer you to another branch if necessary.