How To Save in Dollars in Nigeria – A Detailed Guide

Nigeria’s economy has been grappling with inflation and the persistent devaluation of the Naira, leaving many people worried about their savings. For instance, imagine earning and saving diligently in Naira, only to realize that the value of your money is dropping each time the exchange rate worsens. This reality hits hard, especially for those planning for major life goals such as education, travel, or investments.

Saving in dollars has emerged as a smart alternative. Why? Because the dollar is a global currency known for its stability, making it a reliable way to preserve the value of your hard-earned money. By saving in dollars, you shield your savings from inflation and devaluation while opening doors to international opportunities.

In this guide, I’ll walk you through how you can save in dollars in Nigeria, from using domiciliary accounts to fintech apps. I’ll also share the best apps for dollar savings, and highlight why saving in dollars is a game-changing strategy for securing your financial future.

How Can I Save in Dollars in Nigeria?

If you earn in dollars, it is easier to save in dollars as it is more direct. On the other hand, if you don’t, you can use Naira to buy dollars for you to save. Additionally, since USD is not Nigeria’s official currency, you can not spend dollars on day-to-day transactions. To be able to spend your dollar savings, you have to convert it to Naira officially or through the black market. 

There are two legal ways to save in dollars in Nigeria. They are:

1. Using a domiciliary account
2. Using a fintech app

1. Using a Domiciliary Account

A domiciliary account is a specialized bank account that allows you to save, receive deposits, and transact in foreign currencies like dollars, pounds, or euros. It’s one of the oldest and most reliable ways to save in dollars in Nigeria.

To open a domiciliary account, you need to visit a bank that offers this service. Most major banks in Nigeria, like GTBank, First Bank, Zenith Bank, etc, allow you to open a domiciliary account. You’ll need documents such as a valid ID, proof of address, passport photographs, and a minimum deposit amount, which varies by bank. You can fund the account by depositing dollars directly or converting Naira to dollars using black-market exchange rates or through a bank. 

In addition, you can use your domiciliary account for international transactions such as paying tuition fees or shopping online. It’s a stable and secure saving option that gives control over your funds, as you can withdraw or transfer anytime. The drawbacks of using a domiciliary account include the high transaction fees and lengthy paperwork process. 

2. Using a Fintech App

Fintech apps have made saving in dollars in Nigeria easier, faster, and more accessible. With these apps, you can convert your Naira to dollars at competitive rates and save them digitally without needing a domiciliary account.

To start, decide which fintech app you want to use and download it. Do your research to pick the one that works best for you. Once you’ve installed the app, sign up using your phone number and email address. Next, fund your wallet by transferring Naira from your bank account to the app. Choose the option to save in dollars, and the app will automatically convert your Naira to dollars at the prevailing exchange rate. On the other hand, if it is a cryptocurrency app, you can buy USDT or USDC with Naira. 

Fintech apps are easy to use and they eliminate the paperwork and lengthy process involved in opening a domiciliary account. Additionally, their transaction fees are lower compared to traditional banks. Also, you can automate and track your savings. The drawback is that the exchange rates may not always be favourable. 

Top 4 Dollar Savings Apps in Nigeria

With the rise of fintech platforms, it has become more accessible than ever to save in dollars in Nigeria. These apps offer competitive exchange rates, secure platforms, and additional features like interest-earning savings plans.

Let’s explore the best fintech apps for saving in dollars in Nigeria. They are:

1. Piggyvest
2. Bybit 
3. Cowrywise
4. Muna

Let’s talk about these fintech apps one after the other.

1. Piggyvest

Piggyvest is one of the most popular savings apps in Nigeria, known for its user-friendly features and transparency. Its “Flex Dollar” feature allows you to save in dollars and earn up to 7% interest annually. The app makes it easy to convert your Naira to dollars directly within the platform. You can also automate your savings by setting up daily, weekly, or monthly contributions. 

One major advantage of Piggyvest is its high-security standards, giving users peace of mind about their funds. However, the app’s exchange rates might not be as competitive as the black market, and locking funds in fixed savings plans may restrict withdrawals during emergencies.

2. Bybit

Bybit is primarily a cryptocurrency exchange, but it offers a convenient way to save in dollars using stablecoins like USDT (Tether), which is pegged to the US dollar. Users can buy USDT with Naira and hold it in their Bybit wallet as a dollar savings alternative. 

What sets Bybit apart is its low transaction fees and the ability to earn interest through flexible savings or staking programs. These can provide annual returns depending on crypto market conditions. While it’s an excellent option for those comfortable with digital currencies, beginners may need some time to get used to the app’s features. 

3. Cowrywise

Cowrywise is another popular choice for saving in dollars. With the app, you can convert naira to dollars and save towards a particular goal. It offers flexible and fixed savings plans, enabling you to earn competitive interest rates on your dollar savings. 

Cowrywise is regulated by the Securities and Exchange Commission (SEC), ensuring the safety of your funds. However, while it offers excellent customer service and helpful features, its interest rates for savings are not fixed. 

4. Muna

Muna is a specialized app designed to give Africans access to decentralized finance (DeFi) and cryptocurrency. With Muna, users can save in dollars through crypto like USDT and USDC, while earning competitive interests of up to 7% annual percentage yield (APY). 

Additionally, you can buy, sell, swap, and send cryptocurrency on the Muna app. It’s particularly useful for those who frequently deal with crypto transactions, as it provides transparent fees and favorable exchange rates. However, Muna’s limited range of features might be a downside for users unfamiliar with crypto. 

4 Reasons Why You Should Save in Dollars

If you are in Nigeria and have ever thought about saving in dollars, you should follow it through if you have the funds. There are many reasons why saving in dollars is a good idea. Here are 4 benefits of saving in dollars:

1. Beat inflation and devaluation: The Naira’s value decreases rapidly due to inflation. By saving in dollars, you protect your money from losing value over time.
2. Good investment opportunity: Dollars tend to appreciate against the Naira. If you save in dollars, you can benefit when the exchange rate changes in your favour. 
3. Economically viable currency: The US has the biggest economy in the world, making its currency valuable. As the dollar remains one of the strongest and most reliable currencies globally, it offers stability for your savings.
4. Globally accepted currency: The dollar is widely accepted worldwide, making it easier for you to transact internationally, invest abroad, or even travel.

Conclusion 

Saving in dollars is a practical and effective way to protect your money from Nigeria’s economic challenges. It’s a smart financial move to guard against inflation and currency devaluation. You can decide to open a domiciliary account with any traditional Nigerian bank or use a fintech app to save in dollars in Nigeria. Choose the option that best suits your needs and take control of your financial future today.