The Best Bank To Withdraw From Payoneer in Nigeria

Dec 22, 2021
Affiliate disclosure

Payoneer is one of the world’s leading e-commerce financial service platforms, used by millions of freelancers and small businesses around the world to invoice customers, pay suppliers, and withdraw business profits. If you serve clients outside of Nigeria, then chances are that you will be receiving money in various kinds of international currencies.

In this guide, we will walk through the best banks to withdraw those funds from Payoneer into naira and US dollars, and the steps you need to take to complete the transaction. You can learn more about one of these options, Kuda Bank, through our in-depth provider review.

Monito is here to help you get the information you need to run your business smoothly and get paid directly from Payoneer.

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What's the Best Bank to Withdraw from Payoneer?

Monito recommends Kuda Bank as the best bank to withdraw your Payoneer revenue in Nigeria. SMEs, self-employed professionals, and online retailers in Nigeria can use Payoneer to get paid internationally and use Kuda Bank to withdraw in local naira.

With access to bank accounts in eight countries, fully-functional debit Mastercards, and inexpensive international transfers, Payoneer is a powerful business account option. Kuda Bank is a Nigerian partner that we recommend without reservation.

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How To Withdraw From Payoneer in Nigeria?

As a Nigerian business owner using Payoneer, you will likely be getting payments from customers in many kinds of foreign currencies. In fact, Payoneer gives you local bank account details of eight countries* including US dollars, British pounds, and Euros.

In other words, using Payoneer means that you can get paid like a local in eight currencies and spend like a local (i.e. spend Canadian dollars in Canada without foreign transaction fees). If you want to withdraw money in naira, however, then you may face some exchange rate costs

* Get local bank account details for US dollars, British pounds, Euros, Australian dollars, Canadian dollars, Singapore dollars, Japanese yen, and Hong Kong dollars.

Payoneer's Naira Withdrawal Fees

If you want to convert your business profits into Nigerian naira (NGN) and access them in Nigeria, then Payoneer will charge you the following fees regardless of what Nigerian bank you use:

  • Exchange Rate Margin: None. Payoneer uses the mid-market rate.¹
  • Fixed Service Fee: 2% of the transaction¹.

Now let’s look at some trusted Nigerian banks that you can connect with Payoneer to withdraw your business funds.

Kuda Bank on kuda bank the bank of the free

Option 1 — Kuda Bank

Kuda Bank is a revolutionary digital-only bank that operates in Nigeria for Nigerians. It is not only a licensed bank regulated by the Central Bank of Nigeria but also an official partner of Payoneer. Its business model is free of fees. To make money, the company instead offers overdraft loans that charge interest payments. You can download the app to sign up.


When you connect your Payoneer account with a Kuda Bank account, you will be able to view the US dollars, British pounds, or Euros from your customers in the savvy Kuda Bank mobile app. The main advantage here is that you can access your Payoneer funds directly, immediately, and electronically thanks to the Payoneer and Kuda Bank app integration².

You can then withdraw that money in Nigerian naira with your Kuda Bank card from 3,000 ATMs across Nigeria.

Kuda Bank charges no monthly maintenance fees and no debit card issuance fees.


The largest drawback is that the Kuda Bank debit card only holds naira, meaning that you cannot use the card to make payments in USD, GBP, or other foreign currencies. To make payments internationally, you can use your Payoneer Mastercard or another multi-currency card with a different bank.

Obinna Okerekeocha on Unsplash skyline of lagos nigeria

Option 2 — Traditional Nigerian Banks

First Bank Nigeria (FBN), United Bank for Africa (UBA), Guaranty Trust Holding Company (GT Bank), Access Bank, and Zenith Bank are Nigeria’s top five largest banks and are all secure options with the capability to link to Payoneer. You can send your money from Payoneer to these bank accounts and withdraw naira.


Unlike Kuda Bank, these banks have physical branches where you may go to withdraw cash in person. These banks also offer free ATM withdrawals if you use their debit card within their system of Nigerian ATMs.

Furthermore, all of these Nigerian banks offer domiciliary bank accounts that hold USD, GBP, and Euros as well as accept international wire transfers in USD. In other words, you can store foreign currency in Nigeria.

These domiciliary accounts all offer debit and credit cards that can hold and access your NGN and USD too. First Bank Nigeria, however, is the only one to offer a multi-currency debit card that links all of your NGN, USD, GBP, and EUR accounts to one convenient card.


Nigerian banks can all receive money from Payoneer, but the request can take hours or days to get processed. Kuda Bank, on the other hand, receives your revenue from Payoneer immediately

While costs vary from bank to bank, all of these banks will charge monthly fees if your funds drop below a minimum operating balance. UBA runs its small business accounts with fixed monthly charges. The average fee for issuing a US dollar debit card with these banks is ₦1,000³ .

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Open a US Dollar Bank Account From Nigeria

You can open a US dollar bank account in Nigeria today to directly receive US dollars from abroad. Read our in-depth guide to learn more about how to open a 'domiciliary' dollar account today.

Igor Miske on Unsplash ecommerce business digital platform

Steps To Withdraw From Payoneer in Nigeria

Whether you withdraw funds from your Payoneer account with Kuda Bank or a traditional Nigerian bank, Payoneer’s well-designed platform makes it easy for you to get paid. However, it is important to note that fees will vary if you want to receive naira, US dollars, or another foreign currency in Nigeria¹.

Receiving Funds Into Your Nigerian Bank

Through Payoneer, you charge your clients for your business services and you receive payments into your Payoneer account. Thanks to Payoneer's powerful technology, the platform allows you to transfer your international business earnings directly into your local bank account in Nigeria.

Fees associated with this currency conversion will change depending on two variables: the original currency and the desired currency.

  • USD in Payoneer to USD: $1.50 flat fee
  • Non-USD in Payoneer to USD: 2% of transaction
  • Any currency in Payoneer to NGN: 2% of the transaction

Withdraw Funds with Kuda Bank

Withdrawing your business revenue from Payoneer to Kuda Bank is straightforward and streamlined thanks to the digital integration of the two platforms.  

  1. Log in to the Kuda Bank digital app
  2. Give Kuda Bank access to your Payoneer account and link accounts
  3. Specify amount of foreign currency you want to withdraw from
  4. Click ‘Withdraw’ to convert funds to naira (NGN) in your Kuda account
  5. Use Kuda Bank’s debit card at local merchants or ATMs to spend naira

Withdraw Funds with a Traditional Nigerian Bank

Like Kuda Bank, you can withdraw your Payoneer revenue in the form of naira. Since Nigerian domiciliary accounts accept US dollars without charging exchange rate fees, you may benefit from simply sending USD directly to your US dollar domiciliary bank account in Nigeria.

  1. Log in to your Payoneer account
  2. Enter your Nigerian bank account details
  3. Choose which balance (i.e. USD, JPY, EUR, etc) to withdraw
  4. Specify amount of the balance to withdraw
  5. Send and check to confirm that your local bank received funds
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Getting Paid in Nigerian Naira (NGN)

Business owners may receive foreign money, such as US dollars, British pounds or Euros, from their international customers and convert that revenue into naira (NGN) in their Nigerian bank account. Alternatively, you may send US dollars directly into your Nigerian bank account if you have a US dollar account.

How To Open a Payoneer Account in Nigeria

Payoneer is available in many countries around the world, including Nigeria. To start using Payoneer's world-class services and link your Nigerian bank account to get paid, you will need to open an account online. You can then manage your business with their services by desktop or by mobile app. 

What You Need to Open a Payoneer Account

  • Email address;
  • Government-issued ID, such as a driver's license or passport;
  • Phone number (for verification);
  • Proof of address;
  • Bank account linked with your name.

Sign up for Payoneer and get paid by e-commerce marketplaces, send thousands of payments seamlessly, and even access working capital. The service is trusted by thousands of the world’s top companies like Google, Amazon, and Airbnb, and offers discounts to you for working with their partners.

Learn more about Payoneer and how its technology can scale your business across Nigeria and the globe by reading our in-depth review

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References Used in This Guide

1. Payoneer. Fees. Accessed 21 December 2021.

3. UBA Group. Our Cards. Accessed 21 December 2021.

4. GT Bank. Dollar Debit Cards. Accessed 21 December 2021.

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