Finding out how to get Proof of Funds in Nigeria for traveling is a task usually undertaken by people who are at the verge of leaving Nigeria for another country for various reasons such as:
- Vacation
- Study
- Relocation
- Visitation etc.
So, if you are one of them, you are currently on the right web page. Here, we will expose you to:
- Why a Proof of Funds is pertinent
- The proof of funds providers in Nigeria
- What Proof of Funds is recognized
- And many more.
What is proof of funds and why is it very important?
In simple terms, a proof of funds is a document or letter showing the financial status of a person or entity and proves that such person has enough funds to sufficiently carry out a transaction.
Contextually, a proof of funds convinces the authorities of your destination country and shows that you have the capacity to take care of yourself.
Just as nobody wants other people to be a burden on them, destination countries also don’t want liabilities.
They are interested in welcoming people who are self-sufficient. I mean individuals who wouldn’t constitute nuisance to the welfare and stability of their country.
In essence, these countries want to receive only those who wouldn’t diminish their country’s general standard of living.
What Destination Authorities Accept as Proofs
At this juncture, let’s make something very clear:
When it comes to presenting a proof of funds, it is not the same as revealing your possession of a fleet of cars, acres of land, or a factory. Physical assets are not accepted as proofs of funds.
This is because they are not readily available funds to you.
So, what’s acceptable?
It is simple. An official letter or document from your bank or any other financial institution where your money is saved.
Proof of funds shows your financial details. Also, such funds must be verifiable by the authorities for visa approval and must be accessible by you.
Is proof of funds a legal document?
From your own perception of what a Proof of Funds is, what do you think is the answer?
Basically, a tenable financial document like this doesn’t just show that you have a relatively huge balance capable of supporting you (and your family). What else? It is also an indication that you have a legal right to access these funds anytime.
So, what do we say the document is?
Yes, it is a legal document.
Features of a Proof of Funds Document
What must a Proof of Funds have?
Obviously, a document serving as a proof of fund must not be a regular, casual kind of document.
There are certain attributes it must have before it can be recognized as such. Please note that this may not be an exhaustive list.
They include:
1. Letterhead
Firstly, the details on this document are official information and must be treated as it is.
Meaning, the document must not be printed on a random paper but on an officially recognized paper. And this is where a letterhead comes in.
So, ensure the proof of payment you are submitting is on the issuing financial institution’s official letterhead.
The financial house contact information: the proof of funds document must have traceable contact details including phone contact and office address.
2. Your Name
Of course, having another person’s name as yours intentionally or by mistake might attract sanctions.
According to the law of any land, the attempt is impersonation and it’s punishable.
Check out for mistakes and ensure your name is on the document sent to the embassy.
3. Account Number
Similar to the above, your account number is unique. It certified your account ownership.
This is why you want to make sure the account number on your Proof of Funds is correct.
4. Account Balance
What’s a proof of funds without the main item – account balance?
Alongside other important details, a proof of funds is only tenable if it reveals the current amount an individual has in the account.
5. Date Account was Opened
This is one of the most important elements.
An account opened a few days to submission already suggests something fishy.
The authorities are much more interested in a relatively old account that has witnessed transactions over time.
6. Signature
Falsification of documents is not a new thing. Unscrupulous individuals engage in this awful act just to find their way.
What am I saying in essence?
Not all documents deserve people’s trust.
And if you want your submission accepted, the signature of a qualified representative of the financial house must be appended on it.
Proof of Funds Providers in Nigeria
This section answers the question:
“Where can I get a proof of funds in Nigeria?”
A recognized proof of funds only comes from banks or other financial institutions. In this section, we will briefly look at each of these:
1. Commercial Banks
As at June 2022, the Central Bank of Nigeria (CBN) reported 24 fully functioning and licensed commercial banks in Nigeria.
Also, commercial banks in Nigeria houses most of the bank accounts in the country.
To corroborate this, a December 2021 report by Thisday shows that only 6% of Nigerians uses Microfinance Banks as their primary place of banking.
As a financial institution, commercial banks accept deposit from the general public and allows withdrawal of funds.
In addition, commercial banks also offer loans for various needs such as business finding.
As far as a Proof of Funds document is concerned, a commercial bank is a recommended provider.
They are recognized and trusted to provide an error free financial details for you travelling needs.
Examples of commercial banks in Nigeria include Zenith Bank, First Bank, Guaranty Trust Bank (GTB), Ecobank, Access Bank, Union Bank, United Bank for Africa and so on.
What’s next?
2. Microfinance Banks (MFBs)
Official record by the Central Bank of Nigeria shows the country has about 916 recognized and licensed Microfinance Banks in Nigeria.
Over the years, MFBs provide laudable financial services to low income earners.
Furthermore, people with limited access to more sophisticated financial service providers enjoy the services of these banks.
Some Microfinance Banks in Nigeria include:
- LAPO Microfinance Bank
- ACCION
- Mutual Trust etc.
Because Microfinance Banks also have license to collect deposits from their customers, the submission of a Proof of Funds document from these banks is possible.
Now, let’s briefly move on to others.
3. Digital Banks
In Nigeria, digital banks are gradually proliferating.
They are becoming more prominent than ever before.
But, isn’t that a welcome development?
Yes, it is.
If you are someone who’s always uncomfortable with the rigour of accessing a brick and mortar bank, digital banking is your best alternative.
Meanwhile, when we say digital banking, we don’t mean internet banking services provided by commercial banks.
A digital bank represents a complete replica of the physically situated banks you see around. The only difference is that they have their services strictly offered online.
Therefore, they can also provide a proof of funds if you have an account with them.
Some digital banks in Nigeria include:
- Kuda Bank
- ALAT
- Sparkle
- Eyowo
- Rubies
4. Credit Unions
What are credit unions?
They are members-owned financial institutions.
Plus, they are non-profit oriented unlike other financial institutions.
Usually, credit unions are called cooperative societies. And they have by-laws regulating members actions.
Like other financial institutions already mentioned, you can save money and withdraw your money on demand.
If you belong to a credit union, the union can generate a proof of funds you can present for visa application.
Here are some examples of credit unions in Nigeria:
- Offshore Credit Union, Ikeja
- Frankis Cooperative Thrift & Credit Society Nigeria Ltd
- Ibadan Otitoloju Co-operative Investment & Credit Union Limited
- Coopital (Lekki) Cooperative Multipurpose Society Limited
Can I take loan for proof of funds?
Seriously, this question is quite controversial.
Why?
Some say, ‘no’ or ‘not advisable’ because such fund is a liability. It only reflects as a credit from a loan instrument.
Aside that, it is not a proof that you have sufficient and accessible fund to support your stay abroad.
Also, they can reject your application if they catch you.
But what do others say?
While some don’t support the notion of obtaining a loan, some have a contrary view.
They believe an applicant can be smart to avoid detection.
For instance, you can obtain a loan and deposit the sum in a separate account. Then, transfer it later to the main account you want to present for Proof of Funds.
Please Note: the above instance is not a recommendation from us.
What is advisable?
If you don’t have a sufficient balance in your
bank account, you can liquidate your assets or allow your acquaintances fund your account, so far it states that you don’t have to repay.
How to Get Proof of Funds from Bank and Other Financial Institutions in Nigeria
The process is hassle-free.
Simply approach your bank or any other financial institution keeping your money.
After submitting your request, your Proof of Funds document should be with you in no time.
Although, the time of processing depends on the mode of operations of each financial institution. But in any circumstance, it shouldn’t be more than two weeks.
Conclusion: How to Get Proof of Funds in Nigeria
Your Proof of Funds is a communication of confidence and assurance. That is, with this document, the authorities of your destination country can prove that you have the financial capability to take care of yourself.
But getting this document in a way that doesn’t foster any suspicion is what’s also important. And this post on how to get Proof of Funds in Nigeria for traveling has the details you need to go about this process.
In summary, we covered a number of things you need to know such as the importance of Proof of Funds, features of a Proof of Funds document, Proof of Funds providers in Nigeria etc.
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