The Central Bank of Nigeria, CBN, has introduced fresh measures aimed at improving the reliability and security of foreign-issued payment card usage across the country, directing banks and other financial institutions to adopt multi-factor authentication for such transactions.
The new directive was conveyed in a circular dated December 18, 2025, issued by the CBN’s Financial Policy and Regulation Department and signed by its Director, Dr Rita I. Sike.
Addressed to all deposit money banks and non-bank financial institutions, the circular, titled “Facilitation of Seamless Use of Foreign Cards,” stipulates that multi-factor authentication must be applied to all withdrawals and online transactions above daily, weekly, and monthly thresholds of $200, $500, and $1,000 respectively, or their naira equivalents.
According to the apex bank, the policy is designed to strengthen transaction security while enhancing the payment experience for tourists and Nigerians returning from the diaspora.
The CBN noted that the initiative seeks to boost convenience, safety, and overall user confidence in the use of foreign-issued cards nationwide.
Under the new framework, banks and non-bank acquirers are required to ensure seamless access to local currency withdrawals, payments, and transfers for holders of foreign cards across Nigeria.
Institutions must also maintain high system uptime to prevent service disruptions during transaction processing.
The CBN further directed that all automated teller machines, point-of-sale terminals, and online payment platforms be properly configured to accept international cards routed through Nigerian acquirers.
These platforms must fully comply with global card association standards and possess the appropriate certifications or recertifications to guarantee smooth transaction processing.
In addition, all settlements arising from foreign card transactions are to be conducted strictly in naira, with financial institutions expected to maintain adequate liquidity to meet settlement obligations promptly.
To curb fraud, the regulator mandated the deployment of advanced transaction-monitoring systems capable of identifying unusual or suspicious usage patterns involving foreign cards. Merchants accepting foreign card payments are also to be subjected to enhanced know-your-customer and anti-money laundering requirements.
Where necessary, merchants must request valid identification and ensure that card-present transaction receipts are duly signed.
Any transaction deemed suspicious must be reported without delay to the Nigerian Financial Intelligence Unit, in line with existing regulatory requirements.
The CBN also emphasised the need for transparency in pricing. Banks and acquirers are required to clearly disclose applicable exchange rates and charges to customers before transactions are completed.
Exchange rates must be market-based, aligned with the prevailing official rate, and fully disclosed upfront. Transactions are to proceed only after customers have expressly accepted the terms, with proof of such consent properly documented.
As part of merchant capacity building, acquirers are mandated to conduct quarterly training sessions for merchants and agent networks on dispute resolution and chargeback management.
The apex bank warned that consumer complaints related to foreign card transactions must be resolved within stipulated timelines, stressing that unresolved cases escalated to the CBN would attract appropriate sanctions.
Tourists and returning Nigerians who encounter difficulties using foreign-issued cards were advised to lodge complaints with the CBN’s Consumer Protection and Financial Inclusion Department.
To further improve user experience, especially for visitors, financial institutions were instructed to recalibrate their fraud-monitoring systems to reduce unnecessary declines of legitimate foreign card transactions. For low-value payments, card acceptance devices must also support contactless payment options.
The circular equally introduced stricter requirements for chargeback and dispute management.
Acquirers are to establish auditable chargeback processes consistent with card scheme rules and CBN guidelines, covering timely case handling, evidence gathering, refunds, and post-incident reviews.
Transaction records, including terminal approval slips, signed receipts, and descriptions of goods or services, must be retained for a minimum of 12 months and made available within 24 hours upon request.
