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The short answer
Holding naira is not itself reportable, but naira in Nigerian accounts is: if the combined value of all your foreign accounts exceeds US$10,000 at any time in the calendar year, you file an FBAR (FinCEN Form 114), separately from your return, due 15 April with an automatic extension to 15 October. Form 8938 applies at higher thresholds, starting at more than $50,000 on the last day of the year or $75,000 at any time for a single filer living in the US, and any interest the naira earns is taxable income.
Many Nigerian Americans keep a naira account for family costs, rent collection or simply because closing it is a hassle. If you are a US citizen or green card holder, the US asks two separate questions about it: do you have to disclose the account, and do you have to pay tax on what it earns? The answers depend on balances, not on whether the money ever comes to America.
The FBAR: the $10,000 test
The IRS says US persons, meaning citizens, residents and domestic entities, with a financial interest in or signature authority over a foreign financial account must file an FBAR if the combined value of those accounts exceeds $10,000 at any time during the calendar year. A foreign financial account is generally any account at a financial institution outside the US, and it counts whether or not it earns taxable income (IRS FBAR page, reviewed July 2026). That covers naira savings and current accounts, domiciliary accounts, and fixed deposits.
- Add up the highest balance of each account during the year, not the year-end balance.
- Include accounts you can sign on, such as a parent's account where you are a signatory.
- File FinCEN Form 114 through the BSA E-Filing system, not with your tax return. It is due 15 April, with an automatic extension to 15 October (IRS comparison page, reviewed September 2026).
- Convert each maximum value to dollars at the end-of-calendar-year exchange rate, as the IRS comparison page describes.
Naira notes kept at home are not a financial account. A Retirement Savings Account is a separate question, covered in whether a Nigerian RSA is reportable.
Worked example
Example only: your naira account peaked at ₦12,000,000 in March and your domiciliary account held at most US$3,000. At an example year-end rate of ₦1,450 per dollar, the naira peak is 12,000,000 / 1,450 = $8,275.86. Add the $3,000 and the total is $11,275.86, over $10,000, so you file an FBAR listing both accounts, even though neither alone crossed the line. Use the actual year-end rate when you file.
Form 8938: higher thresholds
Form 8938 is attached to your income tax return and uses different thresholds (IRS comparison page):
| Filer | Last day of year more than | Or at any time more than |
|---|---|---|
| Single or married filing separately, living in the US | $50,000 | $75,000 |
| Married filing jointly, living in the US | $100,000 | $150,000 |
| Single, living abroad | $200,000 | $300,000 |
| Married filing jointly, living abroad | $400,000 | $600,000 |
You may have to file both forms for the same accounts. The IRS lists a penalty of up to $10,000 for failing to file Form 8938, with further amounts after an IRS notice up to $60,000. Our guide to Form 8938 and the FBAR for Nigerian accounts goes further.
Your tax return: interest and Schedule B
US citizens and residents are generally taxed on worldwide income (IRS Publication 54), so interest on a naira fixed deposit is reportable in dollars. Schedule B also asks, in Part III, whether you had a financial interest in or signature authority over a foreign account; the IRS instructions say to answer "Yes" even if you are not required to file an FBAR, and to name the country (IRS Schedule B instructions). Naira that loses value against the dollar does not create a deductible loss for personal holdings, since the IRS says losses on personal-use property are not deductible (IRS Topic 409); the currency side is explained in currency gains on naira conversions.
If you have missed years
For people who did not know, the IRS runs streamlined procedures. The domestic version for US residents involves amended returns for three years and FBARs for six, with a 5% miscellaneous offshore penalty, and requires that the failure was non-wilful (IRS, reviewed July 2026). Read catching up on missed FBARs and speak to a preparer before filing. This is information, not tax advice.
What to check first
- List every Nigerian account in your name or that you can sign on: banks, microfinance banks, domiciliary accounts, fixed deposits, investment accounts.
- Find the highest balance in each during the year from the statements.
- Convert each at the year-end rate and add them up against the $10,000 FBAR line.
- Check the Form 8938 thresholds for your filing status and where you live.
- Add any naira interest to your return, converted to dollars, and answer the Schedule B question.
- Keep the statements and your workings with your tax records, in case a preparer or the IRS asks how you reached the total.
Where Pryme fits
Seeing every naira and dollar balance in one place makes the FBAR count easier. A Pryme account holds NGN and USD together; naira deposits are held by a licensed Nigerian microfinance bank in Nigeria, so treat that balance like any other Nigerian account when you add up your total, and confirm with your preparer.
Questions people ask
Do I need to report my Nigerian bank account to the IRS?
If all your foreign accounts together exceed $10,000 at any time in the year, you file an FBAR with FinCEN. Form 8938 has higher thresholds.
Is the FBAR threshold per account?
No. It is the combined maximum value of all your foreign accounts during the calendar year.
Is interest on my naira fixed deposit taxable in the US?
Generally yes for US citizens and residents, who are taxed on worldwide income. Report it in dollars.
When is the FBAR due?
15 April, with an automatic extension to 15 October. It is filed electronically with FinCEN, not with your tax return.
Sources
- IRS: Report of Foreign Bank and Financial Accounts (FBAR) · accessed Oct 2026
- IRS: Comparison of Form 8938 and FBAR requirements · accessed Oct 2026
- IRS: Instructions for Schedule B · accessed Oct 2026
- IRS: Publication 54 · accessed Oct 2026
- IRS: Topic 409, Capital gains and losses · accessed Oct 2026
- IRS: U.S. taxpayers residing in the United States (streamlined domestic offshore) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.