An offshore bank account or foreign bank account has many benefits, including financial flexibility and privacy. Setting one up, however, can be complicated, especially in Nigeria where it’s not the most common practice.
If you want to understand how to set up an offshore bank account in Nigeria, follow this detailed guide on how to create a foreign bank account with Grey finance in Nigeria. Follow each step carefully, and soon you’ll have your own offshore bank account that you can use as you see fit!
A Guide on How to Open an Offshore Bank Account in Nigeria
There are a number of reasons for you to open an offshore bank account, like the opportunity to diversify your savings, make your savings grow faster by paying lower taxes, have total control over your money, and have a backup plan for emergencies.
But first, it is important that you are aware of the advantages and disadvantages.
One thing that you should know about this process is that every time you transfer funds from a local Nigerian bank account into an offshore one via SEPA transaction you will pay 1% service charge as well as 2% conversion fee.
It might be best if they only do international transactions outside of Africa through wire transfers so they can bypass the Naira’s exchange rate volatility when converting their currency into dollars.
What You Need To Open an Offshore Account
If you’re a Nigerian resident or citizen looking at opening an offshore account, there are a few things you’ll need. First and foremost, you’ll need some capital – an established account will require an initial deposit while a newly established one may not.
You’ll also need to know the name of the bank that’s going to offer you the account with the requirements listed above. This can be found through research on their website or by asking around. You’ll need proof of your identity, so be sure to bring a government-issued ID and proof of address when visiting banks.
Things You Should Know About Having An Offshore Bank Account In Nigeria
Understanding what it means to have an offshore bank account and how you are going to use it is a great start. Knowing the types of international accounts you can open will help give you a rough idea of which one might be best for your needs. Savings accounts offer a place for your money but interest rates may not be as high as with other options.
The next step would be determining if you are looking for an account where there are no monthly service fees or one that offers perks like discounted ATM charges. Withdrawing and depositing money can take some time, so decide how often you will need access before opening the account.
Finally, keep in mind that while global banks are competitively priced, they do charge fees which should be factored into the overall cost of your banking relationship.
Understanding the Naira Market Before Setting Up An Offshore Account
There are two primary reasons to use an offshore account. Getting the best possible foreign exchange rate and avoiding capital controls is the first, the second is tax evasion.
Getting the best rates you can will depend on your location, but generally speaking an offshore account is more likely to provide this when compared with a local bank. Capital controls – limits on how much money you can withdraw at any one time or place – might stop you from moving money out of a country during volatile times if you don’t have access to your funds overseas.
The advantages of being able to avoid them increase as a currency devalues and allows for much easier access should it need protecting from economic shocks that make it vulnerable like what we saw during Europe’s debt crisis in 2009.
The Recommended Way To Open A Nigerian Foreign Account
Nigerian law dictates that every Nigerian resident who opens a foreign bank account must have their identity verified and their accounts audited every year. The government requires this documentation as an anti-money laundering measure.
We highly recommend the use of Grey, which specializes in simplifying the process and making it more affordable for Nigerians.
This site offers customized audit packages that make setting up a foreign account more affordable and practical. If you are interested in opening a Nigerian foreign account with Grey, please follow these steps:
1) Click Browse Services on the homepage to select from four different plans tailored for various business sizes, personal profiles, or needs.
2) Select Open Foreign Account from the menu options to see pricing details and what is included in each plan.
3) You will need to provide your company’s name, industry type, legal structure, and location information so we can accurately calculate your costs.
4) Fill out all required fields (e.g., contact email address).
5) Select your preferred payment method for invoices (e.g., PayPal).
6) Scroll down until you see Terms & Conditions and checkmark I agree before proceeding to the next page where you will enter your card information to confirm purchase of service plan.
Local Banks That Offer Offshore Services
Many Nigerian banks offer offshore banking services. Some of these include Guaranty Trust Bank Plc, Alliance Bancaire Belge N.V., Fidelity Banks Limited, and AccessBank Plc And so on.. So many that you should be able to find one close by or online without a problem.
1) Search for the bank on google. Check their local website for contact details and/or customer care line numbers so you can call them and ask about the products they offer for opening offshore accounts
2) Make an appointment with the banker at your selected bank, go in person if possible and tell them you want to open an offshore account so that you can use this account’s information on all your applications when seeking foreign grants or loans from abroad
International Banks That Allow Nigerians To Open Offshore Accounts
Can I open an offshore account if I’m a Nigerian citizen? If so, what kind of bank should I open an account with? What is the best bank for opening an offshore account in Nigeria? To answer these questions and other related queries, this blog post provides a list of banks that allow Nigerians to open offshore accounts.
The list comprises the following banks: Royal Expressions FZC, Strachans Limited FZE, Sterling Commerce FZE, Saudi International Bank (SAB), Al Ahli Bank (AAB) Khaleej Islamic Bank, Allied Overseas Investors Ltd., Abu Dhabi Commercial Bank Ltd., African International Capital Corp (FZE), and Al Rabih Financial Group.