CBN Headquarters Abuja
In a move aimed at boosting confidence, security and ease of payments, the Central Bank of Nigeria (CBN) has directed banks and other financial institutions to enforce multi-factor authentication on foreign-issued card transactions carried out in the country.
The new directive, contained in a circular dated December 18, 2025, was issued by the apex bank’s Financial Policy and Regulation Department and signed by its Director, Dr Rita I. Sike.
Titled “Facilitation of Seamless Use of Foreign Cards,” the circular applies to all withdrawals and online transactions that exceed $200 daily, $500 weekly and $1,000 monthly, or their naira equivalents.
According to the CBN, the measure is designed to strengthen transaction security while improving the experience of tourists and Nigerians returning from the diaspora who rely on foreign-issued cards for payments.
The circular mandates banks and non-bank financial institutions to “implement multi-factor authentication for all withdrawals and online transactions exceeding $200 per day, $500 per week, and $1,000 per month (or its equivalent).”
Beyond authentication, the CBN instructed banks and card acquirers to ensure uninterrupted access to local currency withdrawals, payments and transfers for users of foreign cards nationwide. Financial institutions were also told to maintain high system availability to prevent transaction failures.
“All ATMs, point-of-sale terminals, and virtual or web-based payment platforms must be properly configured to accept international cards routed through Nigerian acquirers,” the regulator said, adding that terminals must comply with global card association standards and possess valid certifications.
The apex bank further directed that settlements arising from foreign card transactions must be made strictly in naira, while institutions are required to maintain sufficient liquidity to meet settlement obligations.
To curb fraud, banks and acquirers were instructed to deploy robust transaction monitoring systems capable of detecting unusual usage patterns involving foreign cards. Merchants handling such transactions are also expected to comply with stricter know-your-customer and anti-money laundering requirements.
Where transactions appear suspicious, merchants must request valid identification, ensure card-present receipts are properly signed and promptly report such cases to the Nigerian Financial Intelligence Unit.
On pricing transparency, the CBN emphasised that customers must be clearly informed of applicable exchange rates before transactions are completed. The circular stated that exchange rates must be market-driven and based on the prevailing official rate, with all charges disclosed upfront.
“Transactions are to be completed only after users have explicitly accepted the terms, with evidence of such acceptance retained,” the CBN noted.
The regulator also directed acquirers to organise quarterly training for merchants and agent networks on dispute handling and chargeback processes. Consumer complaints must be resolved within approved timelines, warning that escalations to the CBN would attract appropriate sanctions.
Tourists and Nigerians returning from abroad who experience difficulties using foreign-issued cards were advised to report such incidents to the CBN’s Consumer Protection and Financial Inclusion Department.
In a bid to improve user experience, banks were told to recalibrate their fraud-monitoring systems to reduce false declines on legitimate transactions, while contactless payment options must be enabled for low-value transactions.
The circular also introduced stricter obligations around dispute resolution and chargebacks, requiring acquirers to maintain auditable processes covering case intake, evidence collation, refunds and post-incident analysis. Transaction records, including approval slips and signed receipts, must be retained for at least 12 months and made available within 24 hours upon request.
The CBN said the new measures are part of broader efforts to enhance convenience, security and trust in foreign card usage across Nigeria.
