How to Pay International Tuition Fees Without a Domiciliary Account

In Nigeria, the process of paying tuition fees traditionally involves a domiciliary account, obtaining a Form A from traditional banks, waiting for weeks, months, or even longer if a mistake is made in the process. 

Undoubtedly, a domiciliary account may not be the most efficient way to pay your fees whether in the UK for your choice schools like Teesside University, University of Sunderland, or in Canada for the popular choices like University of Saskatchewan.

But what if there was a way to pay tuition fees without a domiciliary account?

In this article, we provide practical solutions for students and their families seeking to navigate the complexities of international tuition payments. What are the alternatives that let you pay in Naira, with good rates and no stress? Let's get started.

Understanding Domiciliary Accounts - Why using a Dom Account is Stressful

A domiciliary account is a foreign currency account in your own country that allows you to hold funds in foreign currencies like GBP, USD, CAD etc for international transactions. 

The biggest problem is that to have a domiciliary account, you need to own foreign currency and if you don't earn FX already, it may pose a lot of problem to own and maintain a dom account.

Understanding bank account requirements is vital. Not all accounts are suited for international payments, and there are different types of domiciliary accounts from current to savings or inflow-only accounts. For example, UBA uses an Advantage Dom account while Standard Charted calls it a Foreign Currency account.

But here are the 4 biggest problems with using a Dom account for international tuition payments to the UK, Europe, Canada, USA or other destinations.

Extensive Documentation Needed 

Banks require extensive documentation. This can complicate and delay the payment process for students. If you have not experienced this before, expect long documents where one slip-up can cause such a delay you may end up losing your university place.

Navigating Foreign Exchange Policies

Navigating foreign exchange policies adds another hurdle. For example in Nigeria, the CBN often updates its policies. This means students need to stay informed about changes as the policies can impact the availability of foreign currency.

Unclear Exchange Rates

Exchange rates fluctuate frequently and this influences the final cost of tuition payments. Banks sometimes do not share the actual exchange rate being used upfront and this means if you have to pay a £10,000 tuition fee, you are at risk of losing some hundreds of thousands of Naira in unplanned fees. It's wise to plan ahead and keep an eye on official exchange channels to reduce unwelcome surprises - but even this is not always sufficient.

Understanding Bank Account Requirements and Costs

Of course domiciliary accounts provide a direct means of holding and transferring foreign currency but they often demand significant maintenance making them less appealing to students and educators. While your local Nigerian bank takes multiple charges monthly, now imagine these charges in USD, GBP or CAD. It can run into thousands of Naira monthly in dom accounts fees.

Viable Alternatives to Domiciliary Accounts

Domiciliary accounts are specific to foreign currencies but are not always necessary for tuition payments. While domiciliary accounts serve a purpose, they come with challenges ranging from stringent requirements and high costs, which can be a deterrent for students. 

Several alternatives to domiciliary accounts are worth exploring. These options can be less costly and provide greater convenience. Digital payment platforms like Vavita are here to solve exactly these problems.

Fortunately, alternatives exist to streamline international tuition payments and non-traditional methods are becoming more popular.

• Online payment platforms
• International money transfer services
• Cryptocurrency-based solutions

Let's explore how these alternatives stack up against domiciliary accounts.

Online payment platforms

Online payment platforms have transformed international tuition payments, providing practical, secure, and efficient alternatives to traditional bank transfers and domiciliary accounts. These platforms like Vavita cater to Nigerian and African students, offering tailored solutions for local market challenges. Key benefits for international tuition payments are:

• Convenience and Speed: These platforms allow students to initiate tuition payments quickly online, with most transactions processed within hours, significantly reducing delays compared to traditional banking.
• Cost-Effective Transactions: Online payment platforms like Vavita typically offer transparent and competitive exchange rates, often considerably lower than those provided by conventional Nigerian banks.
• Enhanced Security and Reliability: Security is critical for international payments, and reputable online payment platforms provide assurance that tuition payments are secure and guaranteed to reach their intended destinations without complications.
• Naira-Based Transactions: Platforms offering Naira-based transactions eliminate the need for domiciliary accounts or direct foreign currency holdings. This removes significant barriers for families without easy access to foreign currency

International money transfer services

International money transfer methods like Paypal are typically used for money transfers for paying fees. Whether a masters in the UK, MSc in Canada or BSc in Germany, Paypal or Alipay might sometimes be accepted methods to make payments to your university.

But these options come with big problems. They are often not available to Nigerians, Ghanaians or people from other African markets. For the few Nigerians who own such accounts, we have heard cases of funds being locked up for months without warning, transactions failing to get through, or endless fraud checks.

You need a payment product designed for Africans - that’s where Vavita can help.

Cryptocurrency-based solutions

Cryptocurrency offers an emerging alternative for international tuition payments, providing a decentralized, borderless method of transferring funds. Digital currencies like Bitcoin (BTC), Ethereum (ETH), and stablecoins such as USDT (Tether) enable students and parents to bypass traditional banking restrictions and forex limitations.

One of the biggest advantages of using cryptocurrency for tuition payments is the speed and cost-effectiveness. Additionally, crypto payments eliminate intermediary bank fees, making them an attractive option for students looking to save on transaction costs.

However, challenges remain. Universities don’t accept cryptocurrency payments. Unpredictable volatility exists with digital currencies fluctuating in value. And beyond this, it can be nearly impossible to purchase cryptocurrency in Nigeria and then sell it for GBP, CAD, EUR or USD. To mitigate this, some fintech platforms offer crypto-to-fiat conversion services, allowing students to send tuition payments in crypto while the university receives the exact amount in their preferred currency - but they rarely serve African markets.

For Nigerian students, access to cryptocurrency can also be restricted due to regulatory policies. The Central Bank of Nigeria (CBN) has imposed limitations on crypto transactions via traditional banking systems, requiring users to rely on peer-to-peer (P2P) trading platforms to fund their crypto wallets.

CONCLUSION

Navigating international tuition payments without a domiciliary account seems daunting. However, platforms like Vavita simplify the payment process and offer transparency, security, and speed, allowing students and their families to focus on what matters most — education and peace of mind.

Please refer to Vavita’s terms of use and check product availability in your region for the most accurate and current information on fees, pricing, and other details.

This content is provided solely for informational purposes and does not constitute legal, tax, financial, or any other type of professional advice from Vavita or its affiliates. It should not replace advice from qualified financial advisors or other professionals.

Vavita and its affiliates do not make any express or implied guarantees about the accuracy, completeness, or timeliness of the content in this publication.