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What are the best banks for a business account in Nigeria?

An advisor of a bank explaining a client about how to use a business account in Nigeria
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The best bank for business account in Nigeria helps small and medium-sized businesses expand and enhance their profitability. With corporate banking offered by the best banks in Nigeria, there is never a better time to own a corporate business account.

Nigeria is attractive to foreign businesses

Nigeria is the world’s most populous black country, as well as Africa’s biggest economy.

Therefore, the country is rich in oil and has quite a bubbly economic scene.

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Due to the development status of the country, it is an attractive destination for both local and foreign-owned businesses.

Because of the country’s attractive business scene, many foreigners from the Americas, Europe, Asia, and Africa go to the country to do business.

It is a country where business taxation runs so low, and profits are guaranteed.

Starting a business bank account in Nigeria

Most business owners and entrepreneurs need to run a successful business in Nigeria is a business account, otherwise known to the banks as a corporate account.

Before you open a business account for your business in Nigeria, you will need to know the particular bank’s requirements in getting a business account.

While most banks have a generic requirement for opening a business account, there are also some slight variations.

One benefit of opening a business account in Nigeria is that it is the final stage of your company registration in Nigeria.

Therefore, if you are a foreigner looking to open a business account in Nigeria, this definitive guide will give you all you need to open up the account successfully.

The advantages of opening a business account in Nigeria:

When you open a business account for your business, you can easily track the cash flow going into and out of your business.

Furthermore, the business account allows you to effectively and accurately work out the amount of tax you expect to pay at the year’s end.

The following reasons will let you know why you need a business account.

1). Entrepreneurial Professionalism

As an entrepreneur, there is no such feature of your business that projects your professionalism than having a business account.

Your professional and corporate image gets enhanced when you open a business account.

2). Accurate Tax Estimation and Deductions

When your business gets its corporate account, this ensures that the right taxes gets filed accurately.

You can see your bank statement and estimate the amount of taxes that you need to pay.

If you mix up your expenses with your business account, it may become challenging to file our taxes accurately.

Moreover, in Nigeria, businesses that fail to file their taxes with the IRS accurately can be up for stiff penalties from the IRS.

3). Precise and point-blank bookkeeping

As a business owner, you should avoid mixing your personal and business transactions.

When you have a different account for transactions involving your business, there is a presentable and genuine record to present to the accountant at the year’s end.

Furthermore, you could use different bookkeeping and accounting methods to make your account accurate and clean.

How to open a business account in Nigeria?

Whereas different Nigerian banks have their procedures for opening a business account, the process and need documentation are still similar.

Almost all banks in Nigeria offer numerous services to a different range of clients.

These accounts come with various features such as activation of international funds transfer, foreign exchange, debit and credit card, trade facilities, a multi-currency account, internet banking, mobile banking, etc.

The process is as follows:

1). Choose the right bank for your business account.

The first phase of opening a business account involves choosing your preferred bank in the country.

In Nigeria, there are 25 capitalized commercial banks that you can choose from.

However, there are very few banks that offer suitable options for corporate banking.

Different banks have their business account services and their accompanying features.

The accounts also come with incentives that make it possible for holders of its account.

You expect to get the right information about the bank and its business account services before choosing the bank.

2). Sort out your documentation.

Secondly, before you set out to the bank for your corporate account, you may want to get your documentation in order.

Some documents needed by foreigners to set up their business account includes the passport of the owner, business registration certificate., Tax identification, Identity card, an account opening mandate, and all that.

3). Fill out the Banks application form.

The next step to getting your business account activated is filling out your forms.

Either you visit the bank’s official website, or you could work into any local branch of the bank if you are in Nigeria.

You can then proceed to fill out the forms.

Once you are done, you can get the completed forms and the required documents and submit them at the bank.

4). Make the license of your registered business available.

To open a business account in Nigeria, you should ensure that you provide the bank with your registered business license.

When you show them this license, you show the bank some proof about your business’s validity and legitimacy.

Your registration is a primary requirement for opening a business account in Nigeria.

5). Submit the number for your Tax ID.

In Nigeria, businesses pay tax to the IRS.

This means that you are given a unique Pin Number or Tax pin during business registration.

Correspondingly, this Tax Pin is needed to open a business account.

Furthermore, you need to submit the official name of your registered business in Nigeria.

Typically, this specification is denoted as “DBA,” which means “Doing Business As.”

It is also good to note that you must present useful signatories or references for the corporate account.

You should follow through with all the proper instructions regarding the references and signatories for the business account.

Therefore, if you follow through with all the stages, get your documents submitted, and be present to sign up for the account, you shall quickly get the account for your business.

The best banks to open a business account in Nigeria:

1). Zenith Bank PLC

This is the best bank in Nigeria 2020.

Zenith Bank is a Nigerian-based bank that is one of the most important financial institutions in West Africa.

The bank, currently listed on both the Nigerian and London Stock Exchange, is one of the best banks to open a business account.

It was started in May 1990 and began operating two months later in the same year.

Therefore, the bank is known to have helped lots of locally and foreign-owned businesses achieve profitability and sustainability.

In Nigeria, Zenith Bank is one of the best banks to open a business account.

Also, there are lots of benefits that come with opening an account with the leading bank in Nigeria.

You are given professional support plus the necessary guidance from a personal relationship manager.

The bank has a premier corporate banking system.

It, therefore, has several business accounts for different organizations.

The bank operates both individual and corporate banking.

The bank has different corporate accounts for businesses and profitable organizations.

Some of these accounts are:

  • Limited Liability Company Account
  • Enterprise Account/sole Proprietorship:
  • Partnership Accounts
  • Accounts for Associations, Societies, and Clubs

2). Access Bank

Access bank is one of the best banks to open a business account.

The bank currently has different banking subsidiaries in Nigeria, Congo DR, Kenya, the United Kingdom, the Zambia, Sierra Leone, Rwanda, and Ghana.

Also has several representative offices in China, the United Kingdom, and India.

The bank currently has close to 40 million customers from Africa.

So, Access Bank is one of the leading banks in Sub-Saharan Africa.

The bank now contains the former bank that used to be known as Diamond Bank.

Also, has different corporate and business accounts for businesses, including the former Diamond bank corporate account.

Access Bank, as a business-friendly bank, offers several account opening options for businesses.

  • The MPower Biz account
  • The Domiciliary account
  • The Corporate Account
  • The Gold Current Account

3). Guaranty Trust Bank (GTBank Nigeria)

Guaranty Trust Bank is one of the best banks to open your business accounts.

The bank is currently among the top ten banks in Nigeria.

It is a multinational banking company that offers such services as corporate banking, asset management services, investment banking, retail banking, and internet/online banking.

So, if you get a business bank account with Guaranty Trust Bank, you shall have access to several corporate banking resources like loans, advisory services, workshops, competitions, etc. which can help you grow your business.

The bank is top-rated for its campaign to support businesses of various sizes.

The bank’s business accounts are as follows:

  • GTB Business account
  • GTBank Current Account
  • GTBank Domiciliary Account
  • GTMax Account.

Therefore, the bank offers a robust business banking service that involves internet banking services, commercial banking, advances and loans, SME banking, and many more tools.

4). United Bank for Africa (UBA)

United Bank for Africa Plc (UBA) is one of the oldest banks in Nigeria.

The bank is also one of the best banks to open your business bank account with.

The bank has its headquarters in Nigeria.

It also has branches in 20 different countries in Africa.

UBA is one of the best banks that offer corporate banking for local and foreign-owned businesses.

It provides different corporate banking for other businesses based on their categories.

Some of the accounts from UBA are:

  • UBA Professional Account (Professionals and freelancers)
  • Regular UBA Current Account
  • Self-Employed Current Account
  • Expatriate/Diaspora Accounts (for foreigners):

Also, if you have your account with UBA, you are eligible for business support services like merchant services, tools, and resources for business growth, strategic business advisory, and research.

5). Wema Bank Plc

Wema Bank is one of the best banks in Nigeria in terms of innovation.

This bank is the best online banking in Nigeria.

Also, you can get a digital bank account for you or your business without stepping foot into a bank with Wema Bank.

Currently, Wema Bank is the bank in Nigeria with the most significant digital banking platform called ALAT By Wema.

As the fastest expanding bank in Nigeria, it can be found in all 37 states of Nigeria.

Wema bank started its operation as a privately owned company in May 1945.

Due to its rich history, Wema Bank is currently the longest surviving locally-owned bank in the country.

The bank has various bank account services that are suitable for businesses.

  • Corporate Account
  • My Business Account
  • My Business Account Plus
  • Wema Treasure Account Business
  • Domiciliary Plus Account
  • Alat by Wema (Business)

The bank also engages its business customers through its SME banking scheme.

With this service, any business can get advisory services, business/SME loans, and other rewarding resources.

6). First Bank of Nigeria

First Bank Nigeria is one of the best banks to have your business bank account.

They also, operate a robust business banking to help their corporate customers navigate the bureaucracies that often come with the Nigerian economy.

The official name of the bank is First Bank of Nigeria Limited.

First Bank is the first bank to be established in the West African country.

It was established in 1894 as the Bank of British West Africa.

The bank currently has more than 700 different banking outlets in Nigeria.

The bank also has different subsidiaries in Africa.

First Bank has a bubbling client base that is close to 25 million and still counting.

Therefore, the bank is one of the best in Nigeria that operates a robust corporate banking system for Nigerian-based businesses.

Some of the business bank accounts that the bank has to offer includes:

  • First Current Plus Account
  • Current Account
  • Domiciliary Account
  • Fixed Deposit Account
  • First Premium Term Deposit

The bank also operates a robust business banking system to help its corporate customers grow.

So, some of their business solutions to their corporate customers include Agricultural finance, internet banking, loans, SME solutions, payment solutions, business advisory services, and more.

How much do you need to open a business account in Nigeria?

In Nigeria, you have different banks that offer bank account for businesses as their primary services.

So, these business bank accounts come with various features and benefits.

This is what dramatically influences the minimum amount needed to open a bank account for your business.

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Another factor that impacts the money need to open a business bank account in the country is the bank’s nature.

Technically, the amount of money required to open a business account is between 5,000 and 100,000.

Conclusion

Starting a business bank account in Nigeria for your local business is as easy as getting all the required documents in place.

When you are ready, take the documents to the bank to get your business accounts.

There are no complicated bureaucracies involved in starting a business account in Nigeria.

The account is usually ready between 24 and 72 hours.