The Central Bank of Nigeria has issued a major directive requiring all banks and payment service providers to fully enable their systems to accept foreign-issued payment cards. The new regulation, designed to improve transaction efficiency for international visitors and Nigerian returnees, comes with enhanced security measures, including mandatory multi-factor authentication for transactions above specific thresholds.
The directive was communicated in a circular signed by Dr. Rita Sike, Director of the Financial Policy and Regulation Department at the CBN. It instructs all financial institutions and non-bank acquirers to configure their automated teller machines, point-of-sale terminals, and virtual payment gateways to seamlessly process international cards through Nigerian acquiring platforms.
A key component of the new framework is the introduction of strengthened security protocols for larger transactions. Banks are now required to implement multi-factor authentication, which involves verifying a user’s identity through two or more separate credentials, for all withdrawals and online payments made with foreign cards that exceed set limits.
The daily transaction limit for triggering this additional authentication is set at two hundred United States dollars. The weekly limit is five hundred dollars, and the monthly limit is one thousand dollars. The CBN stated that these measures are essential for safeguarding against fraud and ensuring the integrity of the financial system.
Beyond security, the circular outlines several operational mandates for banks. They are required to ensure all devices are equipped with contactless payment options for low-value transactions. Financial institutions must also maintain sufficient liquidity to settle all transactions promptly and are obligated to settle with merchants in the local currency, the Naira.
Transparency in pricing is another critical focus. The CBN has directed banks to clearly communicate the applicable market-driven exchange rate, based on the prevailing official rate, and all associated charges to users before a transaction is completed. A transaction can only be finalised after the user has explicitly accepted these terms, with evidence of the acceptance obtained and retained.
The regulator has also reinforced rules around consumer protection and compliance. Banks must resolve consumer complaints within approved timelines and implement robust, auditable chargeback management processes aligned with international card scheme rules. They are further required to provide quarterly training to their merchants and agent networks on proper dispute handling and chargeback procedures.
To combat illicit financial activities, the CBN has mandated that banks strengthen their know-your-customer and anti-money laundering controls specifically for merchants handling foreign card payments. They must also implement transaction monitoring systems to detect unusual patterns and report any suspicious activities directly to the Nigeria Financial Intelligence Unit.
The circular concludes by advising tourists and Nigerian returnees who experience difficulties using their foreign-issued cards to report such incidents directly to the CBN’s Consumer Protection Department via a dedicated email address. This move is seen as a significant step towards integrating Nigeria’s payment ecosystem with global standards, facilitating easier access for international travellers and supporting the country’s broader financial inclusion objectives.
