The Central Bank of Nigeria has rolled out new measures to strengthen the security and reliability of transactions carried out with foreign-issued payment cards in the country, directing banks and other financial institutions to implement multi-factor authentication for such dealings.
The directive was communicated 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” requires multi-factor authentication for all withdrawals and online transactions that exceed daily, weekly and monthly limits of 200 dollars, 500 dollars and 1,000 dollars, respectively, or their naira equivalents.
According to the apex bank, the policy is intended to reinforce transaction security while improving the payment experience for tourists and Nigerians returning from the diaspora. The CBN said the initiative is aimed at enhancing convenience, safety and user confidence in the use of foreign-issued cards nationwide.
Under the new framework, banks and non-bank acquirers are expected to ensure smooth access to local currency withdrawals, payments and transfers for foreign card holders across Nigeria. They are also required to maintain high system uptime to avoid service disruptions during transaction processing.
The CBN further instructed that all automated teller machines, point-of-sale terminals and online payment platforms must be properly configured to accept international cards routed through Nigerian acquirers. These platforms are required to comply fully with global card association standards and hold the necessary certifications or recertifications to ensure seamless processing.
In addition, all settlements from foreign card transactions are to be conducted strictly in naira, with financial institutions mandated to maintain sufficient liquidity to meet settlement obligations promptly.
To tackle fraud, the regulator ordered the deployment of advanced transaction-monitoring systems capable of detecting unusual or suspicious foreign card usage patterns. Merchants accepting foreign card payments are also subject to enhanced know-your-customer and anti-money laundering requirements. Where necessary, merchants are to request valid identification and ensure that receipts for card-present transactions are properly signed.
Any transaction considered suspicious must be reported immediately to the Nigerian Financial Intelligence Unit in line with existing regulations.
The CBN also stressed 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 evidence of such consent properly documented.
As part of merchant capacity development, acquirers are required to organise 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 prescribed timelines, noting that unresolved cases escalated to the CBN would attract appropriate sanctions.
Tourists and returning Nigerians experiencing challenges with foreign-issued cards were advised to file complaints with the CBN’s Consumer Protection and Financial Inclusion Department.
To further enhance user experience, particularly for visitors, financial institutions were instructed to fine-tune their fraud-monitoring systems to minimise unnecessary declines of legitimate foreign card transactions. For low-value payments, card acceptance devices are also required to support contactless payment options.
The circular also introduced stricter standards for chargeback and dispute handling. Acquirers are to establish auditable chargeback procedures in line with card scheme rules and CBN guidelines, covering timely case management, evidence collection, refunds and post-incident reviews.
Transaction records, including terminal approval slips, signed receipts and descriptions of goods or services, must be retained for at least 12 months and made available within 24 hours when requested.
