Nigerian Banks Caught Defrauding Customers Billions With Black Market Rates



Nigerian banks under the watch of Godwin Emefiele-led Central bank have been caught defrauding customers to the tune of billions of dollars via illegal deductions on foreign transactions.

cbn withdrawal feeSince December 2014, Nigerian banks have charged customers hidden fees on single international ATM withdrawals that convert Naira at the Black market rate and widely above the official Central Bank conversion rate.

The Central bank assisted in this fraud by reducing the international withdrawal rates to a daily N60,000 cap or $300. With each withdrawal of a permitted $280 in cash obtained at the ATM, Nigerians are billed upwards of $319 from most Nigerian debit cards, a whopping $39 extra per withdrawal. In Naira, a withdrawal of N63,140 charged to the card gives $280 at the ATM. This $280, converted at the official CBN rate of N199/$ would be only N55,720. Which leaves an additional N7,420 to the banks per daily transaction. This amount does not include the international ATM transaction fee of N330, additionally billed. N7,420 extra on each withdrawal, divided at the official CBN rate = $38 seized. Banks list international ATM transaction fees as N420. This means, if the official fee is taken out, an additional N7000, about $35 is gulped by the banks per customer per daily transaction.

cbn withdrawal fee3 cbn rate

If the total withdrawal amount in Naira (N63,140) as at this Friday, is converted to the $280 received from the ATM, this converts at a rate of 225 Naira to the dollar which is the running Black market rate.


When a Nigerian customer dips in his card into the ATM, he sees his balance in dollars, which is the current CBN rate. When he withdraws $280 cash, his receipt and balance reflects $319 withdrawn!

Intentionally, the banks do not separate the charges on the receipts or account page to show what the conversion rate is and what their charge is. This act enables their fraud by making clients unable to determine the whopping percent of their money the banks are coveting and the fact that the banks are working at the Black market rate as against CBN regulations.

The $35/withdrawal is pocketed by the banks who buy dollars form the Apex bank at the official rate.

From all Nigerian customers using ATM cards in travel, for study or all other purposes abroad, the Nigerian banks are raking up millions of dollars daily converting at the Black market rate.

This discovery is just one more instance where the Central bank, managed by former Zenith bank chair, Godwin Emefiele is assisting Nigerian bank cabal extort the masses unknowingly to the tune of billions of Naira.

Dr. Peregrino Brimah; [Every Nigerian Do Something] Email: [email protected] Twitter: @EveryNigerian

The views expressed in this article belong to the author and do not necessarily reflect the editorial policy of NewsRescue



  1. Avatar
    Tunde Oluwasanmi 1 November, 2015 at 18:11 Reply

    these banks are thieves.i just came back from dubai.the banks are using black market rates.gtb charges 420naira extra per weithdrawal while zenith charges a whopping 1,500 naira extra plus black market rates.awo ole jatijati.stupid barawo bankers

  2. Avatar
    Kelvin Ilumah 1 November, 2015 at 23:19 Reply

    The probe on these defaulting banks must start now, the era of such practices is over, we call on all human right organizations to stage a very strong protest against these banking thieves, this practice have been going on for a very long tim

  3. Avatar
    Ibrahim Adamu 2 November, 2015 at 07:57 Reply

    what do you expect from the current CBN Governor. He was rewarded with that office because of the role he played in the famous $20b scandal.dont expect anything gud from becoz he is part and parcel of the previous govt.

  4. Avatar
    Evaristus Polycarp 2 November, 2015 at 12:24 Reply

    UBA defrauded me about N20K. How? In August 2015 UBA reviewed transactions carried between January and June 2015 and before i knew it about N20k disappered from my account. Just last week my wife and i lost roughly N23,000 to Bank IBTC who reviewed a completed transaction claiminbg we were charged card rate of N198.67/$ instead of N220/$ for a transaction carried out in Malaysia. Is their card rate now black market rate? God don catch una. the era of impunity is gone.

  5. Avatar
    Baba Gowon 2 November, 2015 at 14:40 Reply

    It is a very sad experience and there is nothing we can do now. We just behave like animals in this country. This cannot happen anywhere in the world. I don't forgive them for stealing my money. No.

  6. Avatar
    Mujahid Akilu Indabawa 2 November, 2015 at 15:58 Reply

    I am impressed with this investigative journalism. It reflects the order of the day. Instead of raising critique here i will actually write to the fraud unit of the CBN even if my letter will be thrown to into the trash can. I curtently study abroad and reflecting on these figures i actually see how much i am benn ripped. Additonally we gotta do justice to StanbicIbtc because they actually have the most attractive rate which is actually close to the official rate.

    The painful thing also is that CBN are introducing new policies that are frustrating us, example, now you cannot even buy an airline ticket with your card cos the new cap is $500 and yet the banks are ripping us.

  7. Avatar
    Theresa Ogochukwu Mazeli 3 November, 2015 at 22:51 Reply

    Hmmmm what a relief these bank Mds are just feeding fat from our pocket,am currently studying overseas and was charged about 270k for 5500 pounds from both union bank and fidelity bank,on the claim of increase in foreign exchange that i was so scared of making withdrawals from the ATM,had to cut dwon my feeding for now so as to make do with what i have at hand ,as if God heard my prayers

  8. Avatar
    Roland Akrah 9 November, 2015 at 20:09 Reply

    What can we do to stop this extortion by the banks. President Buhari, please come to the rescue of helpless Nigerians who are milked by these roguish esusu outfits called banks.

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