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Types of Bank Accounts in Nigeria




Types Of Bank Accounts In Nigeria

A bank account is a financial account that enables you to keep money, perform financial transactions safely, and access various credit facilities within a bank’s available products and services. Banks and other financial institutions provide their customers with different accounts that best suit their needs while putting in place terms and conditions of adherence to the bank’s regulatory framework and, by extension, the country’s central bank regulation: Types of Bank Accounts in Nigeria.

In Nigeria, a bank account is essential to initiate transactions from and within banks, as it takes a semblance of an individual’s identity in the banking world. More and more Nigerians are opening bank accounts due to the country’s growing urbanization and regulatory attempts to increase financial inclusion in the country’s banking landscape. As such, commercial banks have employed innovative marketing strategies to entice potential account holders to their banks to capture as much market share as possible.

Following the paradigm shift in the traditional operations of banking towards robust technologically-driven banking, there has been a significant increase in Nigeria’s total number of bank accounts from 124.8 in December 2019 to 191.4 million as of December 2021, with 133.5 active bank accounts.

Therefore, this article aims to explain different types of bank accounts in Nigeria to better understand anyone who does not know much of the banking system in Nigeria.

Types Of Bank Accounts In Nigeria

There are seven (7) bank accounts in Nigeria today, each with distinguishing features from the other types.

  • Savings account
  • Current account
  • Corporate account
  • Fixed account
  • Joint account
  • Domiciliary account
  • Non-resident Nigerian account

Savings Bank Account

A savings account is considered the most popular and commonly used bank account in Nigeria. This bank account is opened to individuals who want personal savings towards a project or future, with a minimum opening deposit as the requirement. Irrespective of the status of opening (individual or corporate), most banks in Nigeria can open a savings account for you with a 0.00 NGN deposit. In contrast, some banks might require you to open an account with 1,000 NGN.

Banks have created several products with a savings account, each with little differences from the standard model. The initial balance and minimum operational balance requirements vary amongst banks. However, you can be sure that you will need a government-approved form of identification, such as a national ID, an international passport, or a driver’s license, as well as a utility bill (such as an electricity bill, water bill, rent receipt, or tenancy bill) to open a savings account.

Pros of A Savings Account

  • Access to ATM card
  • Online banking and other E-banking channels
  • Low-interest rate of at least 1.25%
  • Payment of deposits in the event of your bank is unable to pay up, according to the NDIC Act, 2006
  • Cons Of A Savings Account
  • Limited daily withdrawal
  • Unqualified for overdraw and cheque facilities

Current Account

A current bank account is designed for entrepreneurs, companies, and corporate societies requiring regular third-party transactions. Also, individuals who want to plan and manage their funds can open a current account. The major difference between a current and a savings account is the ability of a third party to withdraw from the existing account, which is lacking in a savings account.

Banks provide a variety of products under current accounts that are designed to appeal to various consumer groups. Although the opening and operating balances of these products can vary, they are often higher than those of a savings account. In addition, having a current account gives you the freedom to issue cheques, overdraw anytime, and pay orders.

You must be at least 18 years old, have a valid form of identification, a utility bill serving as evidence of address, and a fully filled-out signature specimen card to open a current account(s).

Pros Of A Savings Account

  • Unlimited number of withdrawals monthly
  • Savings account holders can access loans and other bank services
  • Some banks have SME current accounts designed for entrepreneurs
  • Managing your current account helps you to know how to file taxes correctly
  • Cons Of A Current Account
  • Current account maintenance fees
  • Maintenance charges for using any e-banking products
  • Limited daily fund withdrawal

Corporate Account

A corporate account is a bank account created for corporate entities or organizations to receive and save business revenue. As a corporate account holder, your company can easily transfer money to individuals or organizations within and outside Nigeria.

However, the required documents for opening a corporate bank account include CAC documents, valid identifications of directors and signatories, passport of signatories, bank verification number (BVN) of directors and signatories, proof of address, tax identification number (TIN), two references, relevant licenses, and board resolution.

Depending on the bank, a Nigerian corporate bank account’s minimum opening amount varies. A current account typically costs between N 10,000 and N 100,000 to start.

Pros Of A Corporate Account

  • Loan accessibility
  • Improves credibility of doing business with other entities
  • Higher investment opportunities
  • Easier financial transactions within and outside Nigeria

Con Of A Corporate Account

  • Double taxation on the funds entering the account

Fixed Deposit Account

A fixed deposit account is a bank account tailored towards investment strategy. This account guarantees high returns on savings within a pre-arranged period, usually 30 days to 180 days, or more, as the case may be.

In exchange for this, the fixed deposit account holder is also entitled to interest at a rate set before the arrangement begins. The agreed-upon time frame is referred to as the tenor. Upon expiration, the holder will have the choice of rolling over the investment for another period with the same terms or withdrawing the investment’s principal (liquidating). However, the holder will forfeit earned interest if he decides to end the contract before the end of the tenor for whatever reason.

Moreover, the interest rates on fixed deposit accounts are higher than on savings accounts, although they can be subjected to Withholding Tax (WHT) upon withdrawal of the funds. A current account is the primary requisite to opening a fixed bank account, with every bank having its respective minimum amount to put into the account. Other required documents include a valid means of identification, passport photograph, and utility bill.

Pros Of A Fixed Deposit Account

  • Potential to earn interest regularly
  • Higher interest rate
  • Guaranteed returns of saving
  • Cons of A Fixed Deposit Account
  • Fixed deposits are taxed at average taxation rates
  • Not suitable for everyone
  • Low returns compared to other investment options

Joint Account

A joint bank account takes a semblance of a regular savings account. Still, the only difference is the multiple ownership and access to a joint account, unlike a savings account that an individual owns. A joint account involves different parties (family or business associates) bounded by trust and cooperation. Therefore, any individual included in the joint account can have direct access.

In a joint account, conjunction words of “and” and “or” between names of the parties play a vital role in interpreting the operations of the account. When two parties are opening a joint account with an “and”, it means that the two parties must both append their signatures before they withdraw money from the account. Also, when the parties names are separated with an “or”, either of the parties has access to the funds in the account without the approval of the other.

Pros Of A Joint Account

  • Tracking expenses
  • Budget management
  • Financial planning for the future
  • Cons Of A Joint Account
  • In the event of death, the account will be subjected to a right of survivorship
  • Poor management of the funds by one party

Domiciliary Account

A domiciliary account is a bank account that enables you to perform transactions in foreign currencies like US dollars, British pounds, Canadian dollars, etc., other than the Nigerian naira (NGN). As a domiciliary account holder, you can easily pay your tuition fees abroad, receive remittances, save, etc. Opening a domiciliary account requires your BVN and other requisite documents to affirm your eligibility for the account.

A Domiciliary account is very important to content creators, online businesses, and Adsense partners that receive funds in foreign currency. A valid identity, passport photos, a utility bill, and a minimum initial balance—which varies by bank and the foreign currency you choose—are requirements for creating a domiciliary account.

Pros Of A Domiciliary Account

  • Control over unstable naira
  • You can stand as a referee for another person
  • Fast and easy payment for the information of goods into Nigeria
  • Cons Of A Domiciliary Account
  • High withdrawal charges
  • Inability to withdraw anywhere or directly fund your account with naira
  • Referees and guarantors are required to open the account

Non-Resident Nigerian Account

It is a type of bank account specially designed for Nigerians living in the diaspora but wants to have a Nigerian bank account still. You can open a Non-resident Nigerian (NRN) account from anywhere in the world. To have this NRN account, you must complete your bank’s migration of account form either online or in person. You must also provide documents like proof of identity, proof of residential address, and references.

Pros Of A Non-Resident Nigeria Account

  • Higher returns on fixed deposits
  • Investment opportunities
  • Con Of A Non-Resident Nigeria Account
  • Conversion depends on the exchange rate of the naira at that time


A bank account in Nigeria is a gateway to having safe and reliable transactions, savings, and investments without hassle. However, it is important to open an account that best suit your needs for an optimum result. See

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Rand Merchant Bank (RMB) works with World Bank in closing first to market MIGA guaranteed short-term sovereign loan



Rand Merchant Bank (RMB) works with World Bank in closing first to market MIGA guaranteed short-term sovereign loan

Through collaboration with MIGA and the Minister of Economy and Finance for Côte d’Ivoire, RMB facilitated a short-term loan to support crucial trade related initiatives

Rand Merchant Bank (RMB) (, a division of FirstRand Bank Limited, has achieved a significant milestone in Africa by partnering with the Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank, to extend short-term funding support on a trade-backed facility for the Republic of Côte d’Ivoire.

Through collaboration with  MIGA and the Minister of Economy and Finance for Côte d’Ivoire, RMB facilitated a short-term loan to support crucial trade related initiatives.

Said Ben Bechet from RMB’s Trade and Working Capital, Structured Solutions team: “While RMB has a proud history of supporting sovereigns on the continent with their funding and capital markets requirements, this is a first of its kind facility for an African sovereign. This transaction will pave the way for further MIGA guaranteed short-term facilities across the continent to assist with developmental initiatives, critical projects and the importation of crucial goods such as food, fertilizer and medicines alongside other resources.”

Clarine Stenfert, Global Trade Finance Head and Head of UK for MIGA, said: “Through deep collaboration with RMB and MIGA, the teams were able to successfully structure and execute a process we hope to scale and introduce to other African countries. MIGA’s Trade Finance Guarantee Framework seeks to support sovereigns or sub-sovereigns across emerging markets with their trade financing requirements, alleviating the current liquidity constraints imposed by the current high inflationary environment and the retreat from markets by private sector players.”

MIGA provides political risk insurance guarantees to private sectors and investors in a broad range of sectors in developing  economies. MIGA promotes foreign direct investment into developing countries to support economic growth, reduce poverty, and improve people’s lives. MIGA fulfills this mandate by offering political risk insurance guarantees and credit enhancement to private sector investors and lenders.

“RMB’s strategy entails forging partnerships with insurance, guarantee and export credit agency providers to extend meaningful funding support to our clients across Africa. Collaboration with development financial institutions and multilaterals remains key to truly unlocking new opportunities to support our clients, concluded Bechet.”

Distributed by APO Group on behalf of Rand Merchant Bank.

About RMB:
Rand Merchant Bank (RMB) is a leading African corporate and investment bank (CIB) and part of the largest financial services group (by market capitalisation) in Africa – FirstRand Bank Limited (which is wholly owned by FirstRand Limited). We offer our clients innovative, value-added advisory, funding, trading, corporate banking, and principal investing solutions.
With a presence in 10 African countries, we have a significant footprint on the continent. We also have access to a network of retail banks, representative offices and branches across Africa, the UK, India and the US.

At RMB we are passionate about solving problems for our clients by asking the hard questions. We challenge accepted thinking. We analyse and seek solutions beyond the obvious. We are innovative in our thinking and turn challenges into opportunities, while delivering on Traditional values. Innovative ideas. Our ability to think differently, our collaborative spirit, our client-centric solutions and our belief that great minds don’t always have to think alike, is what sets us apart.

For more information visit:

About MIGA:
MIGA was created in 1988 as a member of the World Bank to promote foreign direct investment in emerging economies by helping to mitigate the risks of restrictions on currency conversion and transfer, breach of contract by governments, expropriation, and war and civil disturbance; and offering credit enhancement to private investors and lenders. Since its creation, MIGA has issued over $76 billion in guarantees across 123 developing countries, supporting more than 1,000 projects. Over the past decade, MIGA’s guarantees have generated more than 156,000 jobs in developing countries.

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Equatorial Guinea and Ghana Accede to the Establishment Agreement for Afreximbank’s Fund for Export Development in Africa (FEDA)



The Fund for Export Development in Africa (FEDA), the development impact-focused subsidiary of the African Export-Import Bank (Afreximbank) (, has announced that the Republic of Equatorial Guinea and the Republic of Ghana have recently signed the FEDA Establishment Agreement.

This important milestone is the result of several months of cooperation between Afreximbank, FEDA and government officials in Equatorial Guinea and Ghana.

As Afreximbank member states, Equatorial Guinea and Ghana have taken another step towards closer collaborations with FEDA by signing the FEDA Establishment Agreement. This milestone marks the countries’ support for Afreximbank’s efforts to extend FEDA’s impact investing objectives across the continent.

New memberships are crucial to broaden the scope of FEDA’s interventions and its mission of delivering long-term capital to African economies with a focus on industrialization, intra-African trade and value-added exports.

Professor Benedict Oramah, President of Afreximbank and Chairman of the Boards of both Afreximbank and FEDA, said: “We heartily welcome the signing of the FEDA Establishment Agreement by the Republic of Equatorial Guinea and the Republic of Ghana. The signing of the FEDA Establishment Agreement lays the groundwork for an enhanced and more effective cooperation with better access to the full range of interventions offered by Afreximbank and FEDA. This milestone builds on the solid partnership already established with both Equatorial Guinea and Ghana. The aim is to support transformative investments in these countries in the near future.”

About FEDA:
The Fund for Export Development in Africa (“FEDA”) is the impact investment subsidiary of Afreximbank set up to provide equity, quasi-equity, and debt capital to finance the multi-billion-dollar funding gap (particularly in equity) needed to transform the Trade sector in Africa. FEDA pursues a multi-sector investment strategy along the intra-African trade, value-added export development, and manufacturing value chain which includes financial services, technology, consumer and retail goods, manufacturing, transport & logistics, agribusiness, as well as ancillary trade enabling infrastructure such as industrial parks.

About Afreximbank:
African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade. For 30 years, the Bank has been deploying innovative structures to deliver financing solutions that support the transformation of the structure of Africa’s trade, accelerating industrialization and intra-regional trade, thereby boosting economic expansion in Africa. A stalwart supporter of the African Continental Free Trade Agreement (AfCFTA), Afreximbank has launched a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the AfCFTA. Working with the AfCFTA Secretariat and the AU, the Bank is setting up a US$10 billion Adjustment Fund to support countries to effectively participate in the AfCFTA. At the end of September 2023, Afreximbank’s total assets and guarantees stood at over US$33.4 billion, and its shareholder funds amounted to US$5.8 billion. The Bank disbursed more than US$104 billion between 2016 and 2023. Afreximbank has investment grade ratings assigned by GCR (international scale) (A), Moody’s (Baa1), Japan Credit Rating Agency (JCR) (A-) and Fitch (BBB). Afreximbank has evolved into a group entity comprising the Bank, its impact fund subsidiary called the Fund for Export Development Africa (FEDA), and its insurance management subsidiary, AfrexInsure, (together, “the Group”). The Bank is headquartered in Cairo, Egypt.

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Financial Analysis: A Comprehensive Study of The Well-Being of A Country 




Financial Analysis: A Comprehensive Study of The Well-Being of A Country

Understanding the financial stability of a country requires a thorough understanding of financial analysis. In order to offer insights into the overall financial stability and overall wellness of the country, it entails evaluating a range of economic indicators, financial performance, and market movements.

In this article, we will delve into the fundamentals and importance of financial analysis in evaluating a country’s economic situation.


Ancient Beginnings:

The roots of financial analysis can be traced back thousands of years. The ancient Mesopotamians, Egyptians, and Greeks were among the pioneers of documenting financial transactions, creating basic records of assets and liabilities. These early attempts laid the groundwork for the concept of financial analysis through the study of financial statements and ledgers.

Medieval Europe:

During the Middle Ages, Europe witnessed the rise of merchant guilds and the emergence of double-entry bookkeeping. Italian mathematician and Franciscan friar, Luca Pacioli, is often credited with formalizing double-entry bookkeeping, publishing his seminal work “Summa de arithmetica, geometria, proportioni et proportionalita” in 1494. The concept of balancing debits and credits within financial records formed the basis for modern financial analysis techniques.

Industrial Revolution:

The Industrial Revolution in the 18th and 19th centuries revolutionized business and the need for financial analysis grew rapidly. As companies expanded and diversified, investors began demanding more comprehensive financial reports to assess the potential risks and returns of their investments. The birth of limited liability companies further accelerated the need for financial analysis, as shareholders sought transparency in the performance of their investments.

Modern Era:

The 20th century witnessed significant advancements in financial analysis techniques. The advent of electronic computing in the mid-1900s enabled the processing and analysis of vast amounts of financial data, leading to the development of sophisticated financial models and ratios.

The Great Depression of the 1930s laid the groundwork for modern financial analysis as regulators sought effective ways to prevent future economic crises. The establishment of the U.S. Securities and Exchange Commission (SEC) in 1934 brought about standardized reporting requirements, including the filing of audited financial statements. This increased transparency and standardized financial reporting provided analysts with a more accurate and consistent basis for their analysis.

The Rise of Quantitative Analysis:

In the latter half of the 20th century, the growth of computing power and the availability of large data sets propelled financial analysis into new territory. Quantitative analysis, utilizing statistical models and mathematical algorithms, started gaining prominence. Financial analysts began incorporating complex mathematical methods to assess investment opportunities, risk management, and portfolio optimization.

Modern Financial Tools:

With the advent of the internet and the digital age, financial analysis has become even more accessible and data-driven. Sophisticated software programs, data analytics tools, and artificial intelligence have revolutionized the way financial data is analyzed and interpreted. In recent years, technologies like machine learning have been leveraged to develop predictive models that can assess future trends and make accurate financial forecasts.


Financial analysis is the process of evaluating businesses, projects, budgets, and other finance-related transactions to determine their performance and suitability. Typically, financial analysis is used to analyze whether an entity is stable, solvent, liquid, or profitable enough to warrant a monetary investment.

Financial analysis is a fundamental tool that allows organizations and individuals to assess the past, present, and future financial health of a business or investment. Through a systematic examination and interpretation of financial statements, ratios, and other key indicators, financial analysis helps in making informed decisions, optimizing resources, and improving overall financial performance. In this article, we will delve into the meaning of financial analysis, its prominent components, and its significance across various sectors.

Financial analysis involves scrutinizing financial data to evaluate the performance and profitability of an entity. It assists in quantifying the effectiveness of financial decisions, identifying trends, predicting future outcomes, and benchmarking against industry standards. By analyzing financial statements, investors, analysts, and other stakeholders gain valuable insights into the financial position, liquidity, solvency, and operational efficiency of an organization.


  1. Gross Domestic Product (GDP): GDP is a primary indicator used to gauge the economic performance of a nation. Financial analysts analyze GDP growth rates and its components, such as consumer spending, government expenditure, investments, and net exports. This analysis helps in determining the overall strength of the economy and identifying areas of potential growth.
  2. Trade and Balance of Payments: Trade analysis focuses on a country’s imports, exports, and balance of payments. Evaluating trade patterns helps identify sectors driving the country’s economic growth, trade imbalances, and potential risks to the economy from external factors such as changes in global demand or disruptions in supply chains.
  3. Inflation and Interest Rates: Analyzing inflation rates and interest rates provides insights into the stability of a country’s economy. High inflation erodes purchasing power, while high-interest rates can impact borrowing costs, affect consumer spending, and investment behavior. Financial analysts assess the impact of inflation and interest rates on an economy’s overall competitiveness and economic growth potential.
  4. Government Debt and Fiscal Policy: Analyzing a country’s government debt levels and fiscal policy is crucial in understanding its financial sustainability. A high level of government debt may lead to increased borrowing costs, reduced investor confidence, and potential risks to economic stability. Evaluating fiscal policies helps determine whether a country is managing its finances effectively and implementing sustainable economic growth strategies.
  5. Stock Market Performance: The stock market reflects investor sentiment and provides valuable insights into a country’s economic outlook. Analysts evaluate key stock market indices, such as the country’s primary exchange, sector-specific indices, and market capitalization trends. Monitoring stock market performance allows for an understanding of investor confidence, economic growth expectations, and potential risks to the financial system.
  6. Banking Sector and Financial Institutions: A robust banking sector is essential for economic stability. Financial analysts assess the health of the banking system by evaluating indicators such as non-performing loans, capital adequacy ratios, and the overall stability and soundness of financial institutions. Understanding the well-being of financial institutions helps gauge the potential risks to the overall economy, including credit availability, liquidity, and financial contagion.
  7. Regulatory Environment and Governance: The regulatory environment and governance play a critical role in attracting investment and fostering economic growth. Financial analysts assess the effectiveness of regulatory frameworks, transparency in financial transactions, and the overall credibility and efficiency of institutions responsible for enforcing regulations. Evaluating the regulatory environment aids in understanding potential risks and opportunities for sustainable economic development.


Financial analysis plays a vital role across various sectors, serving the following purposes:

  1. Evaluating Financial Performance: By conducting a comprehensive financial analysis, companies can assess their performance, profitability, and financial stability. This, in turn, helps in identifying areas for improvement, developing strategic plans, and making sound financial decisions.
  2. Assessing Investment Viability: Investors rely on financial analysis to evaluate the profitability and risks associated with potential investments. Through detailed scrutiny of financial data, investors can determine the financial health and growth prospects of a company, aiding in making informed investment decisions.
  3. Facilitating Lending Decisions: Financial institutions utilize financial analysis to assess the creditworthiness of loan applicants. By analyzing financial statements, evaluating ratios, and assessing the risk profile, lenders can ascertain the borrower’s ability to repay loans and make sound lending decisions.
  4. Supporting Strategic Decision-Making: Financial analysis aids in strategic decision-making, such as expansion, diversification, or mergers and acquisitions. Understanding a company’s financial position and performance provides a foundation for evaluating the feasibility and potential outcomes of such decisions.


Conducting a comprehensive financial analysis provides valuable insights into the economic landscape of a country. By evaluating indicators such as GDP, trade patterns, inflation rates, government debt, stock market performance, banking sector health, and regulatory environment, financial analysts can gauge the overall financial health, identify potential risks, and recommend strategies for sustainable economic growth. Accurate and timely financial analysis acts as a compass, guiding policymakers, investors, and businesses to make informed decisions and contribute to the overall prosperity of the nation.

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