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The short answer
Some Nigerian banks still accept US dollar drafts, but only into a dollar (domiciliary) account and only as a foreign instrument sent back to the US for collection, so the money is not usable for a long time and the bank's collection charges apply. No Nigerian bank page we found publishes a clearing time; ask the branch before you buy a draft, because a wire or remittance app is faster and easier to trace.
What a bank draft is, and why it is not a local cheque
A US bank draft, usually called a cashier's check or official check in the US, is drawn by your bank on itself, so the funds are guaranteed by the bank rather than by your balance. That makes it safer than a personal cheque, but in Nigeria it is still a foreign paper instrument. Nigeria's quick clearing cycle, where the CBN's truncation guidelines describe cheques clearing on T+1, applies to instruments drawn on Nigerian banks and presented through domestic clearing. A draft drawn on a US bank has to be collected from that bank.
Which Nigerian accounts can take it
| Account | Can it take a USD draft? | Notes |
|---|---|---|
| Naira savings or current account | Generally no | Draft is in dollars; local clearing is naira |
| Domiciliary (USD) account | At banks that accept foreign instruments | GTBank lists FX cheques among domiciliary inflows |
| Business domiciliary account | Possibly, for genuine trade receipts | Bank may ask for the underlying invoice |
GTBank's domiciliary account page lists travellers' cheques, FX cheques and cash as ways money can come into those accounts. That shows the channel exists, but it does not give a time or charge. We did not find any Nigerian bank page publishing a collection time or fee for US drafts as at October 2026.
Why clearing takes so long
Banks do not publish their collection routes, but a foreign-instrument collection typically runs like this.
- The recipient lodges the draft at the branch with ID.
- The bank sends it, or an image of it, to a correspondent bank in the US.
- The correspondent presents it to the issuing US bank, which pays or returns it.
- Funds come back through the correspondent to the Nigerian bank.
- The Nigerian bank credits the domiciliary account, often only after it is satisfied the item will not be returned.
Each step adds days, and each bank in the chain can charge. A returned draft, for a misspelt payee name for example, starts the whole process again, and the recipient may face charges on both sides with nothing to show for them.
Before you buy a draft
- Ask the recipient's bank, in writing, whether it accepts US dollar drafts into their account type, how long collection takes and what it charges.
- Check the payee name on the draft against the account name character for character.
- Ask your US bank what it charges to issue the draft and to replace it if lost; replacement of an official check can take time.
- Send it by a tracked courier, not ordinary post, and keep a copy.
- Compare the total with a wire, where the fee is disclosed up front and the money is traceable.
Drafts, cashier's checks and the 1% tax
The new federal remittance excise tax applies when you pay a remittance provider with cash, a money order, a cashier's check or a similar physical instrument. So buying a cashier's check and handing it to an agent to send money to Nigeria attracts the 1% tax. Posting a draft yourself is different: the tax applies to remittance transfers, which the CFPB rule defines as electronic transfers, so a paper draft you mail directly is outside that definition. That is information, not tax advice; see who the 1% tax applies to.
Better ways to move a large dollar sum
- Wire from your US account to the recipient's domiciliary account. The sending bank shows its fee and you get a reference that can be traced. See wiring USD to a domiciliary account.
- Remittance app for naira payouts: since 1 May 2026 the CBN requires international money transfer operators to pay in naira only.
- For a property or school payment, pay the institution directly by wire and keep the invoice; see sending a property deposit.
If the money will sit in dollars in Nigeria, the rules on using a dom account are in the CBN FX Manual 2026.
Where Pryme fits
A Pryme Personal Account holds USD and NGN with local account details for each, so dollars can move electronically and be converted with Swap when you choose. Outside Nigeria, Pryme's activities are carried out through regulated partners. The app shows the rate and the fee before you approve.
Questions people ask
Do Nigerian banks still accept bank drafts from the US?
Some do, into domiciliary accounts, as a foreign instrument for collection. Ask the branch first; timing and charges are not published on the pages we found.
How long does a US bank draft take to clear in Nigeria?
No Nigerian bank page we found gives a time. It involves sending the draft back to the US for collection, so expect it to be far slower than a wire.
Can I pay a USD draft into a naira account?
Generally no. A dollar draft belongs in a dollar account.
Is a cashier's check taxed when sending money to Nigeria?
Paying a remittance provider with a cashier's check attracts the 1% federal excise tax. A transfer paid from your bank account does not.
Sources
- GTBank: Domiciliary accounts · accessed Oct 2026
- CBN: Guidelines for cheque truncation in Nigeria (Oct 2011) · accessed Oct 2026
- 26 U.S. Code s.4475 Remittance transfers (Cornell LII) · accessed Oct 2026
- eCFR 12 CFR 1005.30 Remittance transfer definitions · accessed Oct 2026
- Udo Udoma & Belo-Osagie: CBN's new directive to IMTOs (Mar 2026) · 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.