HOW TO CASH A FOREIGN CHEQUE (CHECK) HERE IN NIGERIA
Our world today is a global village where no nation functions in complete isolation of the rest of the world.
Cultural, religious, economic and diplomatic relations coupled with the advancement in technology has ensured that the world financial institutions work in pari passu with each other.
You can carry out financial transactions in Canada even while sitting in the comfort of your room in Ilesha, Bida, Akure, Kaduna or wherever you are. You can have a business partner write you a cheque in Qatar and have it mailed to you in Lagos.
These developments have helped in easing the difficulties previously experienced in cross border financial transactions thereby fostering cooperation and international trade.
Here in Nigeria, our involvement in a lot of online businesses has made the need for several alternative means of international money transfers/payment systems imperative.
A lot of webmasters, business men/women as well as other freelancers who offer various kinds of services online often receive their payments in foreign cheques.
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.
That’s why in this post, well 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.
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.
Its 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 travelers 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 here in Nigeria is to have a domiciliary account with any of the local banks. Dont have a domiciliary account yet? Follow the next step on how to open a domiciliary account in Nigeria.
TYPES OOF 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, Voters Card, Drivers License or International Passport)
Utility bill (NEPA Bill)
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 youve 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. Isnt 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 of the 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 youve opened a domiciliary account with.
Thats why its 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:
With a cheque
A written application
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 banks 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.
Receiving and cashing out foreign cheques here in Nigeria is something you can easily do once you have a domiciliary account.
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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