How to Save in Dollars in Nigeria: A Complete Beginner's Guide

With the Nigerian naira losing over 40% of its value in the first half of 2024, more Nigerians are turning to dollar savings to preserve their wealth. In a time where every naira counts, saving in dollars isn’t just an option, it's a necessity. The struggle to keep your hard-earned naira safe from constant devaluation is a challenge many Nigerians face daily.

The value of the naira has been steeply declining in recent years, especially in the foreign exchange market. According to Investopedia, currency devaluation occurs when a country’s currency loses value compared to others, which has unfortunately become a trend in Nigeria. This devaluation has left many people looking for safer options to save money, with the US dollar emerging as a top choice.

Choosing to save in dollars is one of the smartest moves to preserve your money’s value. While there are other foreign currencies, the US dollar stands out due to its stability and global acceptance.

By saving in dollars, a more stable currency, you can hedge against inflation and keep the value of your savings intact.

In this guide, we will highlight some ways you can easily save in dollars in Nigeria, to practical steps to get started. By the end, you’ll have a clear roadmap on how to start saving in dollars and shield yourself from the harsh effects of inflation.

How Can I Save Dollars in Nigeria?

It's important to know that the US dollar is not Nigeria's official currency. As a result, you can only save money in dollars; you can never spend it in Nigeria.

Before you can spend in Nigeria, you must convert to naira using either the official or black market exchange rate, even if you store money in dollars.

In Nigeria, using a domiciliary account or a Fintech app are the two main legal ways to save money in dollars.

1. Using a Domiciliary Account

A domiciliary account (or "dom account" for short) is a type of bank account that holds foreign currency, like dollars, instead of naira. With a domiciliary account, you can deposit, store, and withdraw dollars (or other foreign currencies).

It’s a great option for anyone who gets paid in dollars or other foreign currencies, but it’s not the easiest process. Opening a dom account can be a bit of a hassle, requiring extensive documentation and often multiple visits to the bank.

Plus, there can be some extra fees for maintaining the account or making transactions, which is why it’s not super popular among many Nigerians.

2. Using a Fintech App

The second, and increasingly popular, option is to use a fintech app. Fintech apps have changed the game in banking making saving in dollars way more accessible and convenient.

With a good fintech app, you can save in dollars, transfer money, or even invest with just a few taps on your phone.

No long lines, no stacks of paperwork, and no jumping through hoops! Fintech has made dollar saving a whole lot easier, and these apps often offer flexible options that suit different saving needs.

Step-by-Step: Saving in Dollars with Nearpays

If you’re looking for a reliable way to save in dollars, Nearpays offers some excellent benefits that set it apart from traditional saving options. Here’s why Nearpays is a great choice for anyone looking to grow their money in a stable currency:

24% P.A. Interest on Locked Funds: Nearpays rewards you with a 24% p.a. interest on every dollar you choose to lock in your account, helping your savings grow even further.
Flexible Saving Options: You can decide how long you want to lock your funds. This flexibility means you can tailor your savings goals without being bound to rigid timeframes.
Zero Transaction Fees: With Nearpays, you save without worrying about transaction fees eating into your funds. Every penny you save stays right where it should—safe in your account.

Now that you know why Nearpays is a strong choice for dollar savings, let’s dive into the step-by-step process to get started.

Step 1: Download and Open the Nearpays App

If you haven't already, download the Nearpays app from the Play Store or App Store. Once installed, open the app and log in or set up an account if you're new to Nearpays.

Step 2: Go to the "Savings" Section

After you log in, the "Savings" option will appear on the app's main menu. Tap it to begin setting up your funds.

Step 3: Choose Your Savings Currency

You'll have two options: "NGN" or "USD". Choose the "USD" option. Remember that the minimum deposit is $20 in USD.

Step 4: Select Your Lock Duration

Decide how long you wish to keep your funds locked. You can select "1 month", "2 months", or "3 months". Your choice of time will be determined by how quickly you need access to your funds and how much interest you wish to earn.

Step 5: Enter Your Savings Amount

Enter the amount you want to save once you've chosen your currency and term. This amount will be locked and earn interest over the specified time period.

Step 6: Review and Accept the Terms

Before you finalize your savings lock, read the terms and conditions. This will help you understand how your funds will be managed. Once you are comfortable, accept the terms and proceed.

Step 7: Lock Your Funds

Finally, confirm the savings lock. Your funds are now safely locked for the time you specified, and you will begin earning 2% interest every month!

What Happens Next?

Once your funds are secure, you can sit back and watch your savings grow. You may track your savings and interest earnings directly in the Nearpays app's "Savings" feature.

After your lock period

Your principal and earned interest will be refunded back to your Nearpays account.

You can either withdraw your funds or open a new savings lock to continue building your fortune.

Conclusion

Saving naira in dollars in Nigeria may be beneficial in terms of avoiding depreciation, but it is not without drawbacks.

The naira fluctuates negatively most of the time, yet it may appreciate at any time. When the naira appreciates against the dollar, the naira saved in your account becomes less than before.

But Nearpays makes this process incredibly accessible and rewarding, offering benefits like 2% interest on locked funds, flexible saving options, and zero transaction fees all tailored to fit your financial goals.

So why wait? Take control of your financial future today, download the Nearpays app, and start saving in dollars.