The Central Bank of Nigeria (CBN) has mandated multi-factor authentication for foreign-issued card transactions exceeding $200 daily. The rule aims to enhance security while facilitating smoother payments for tourists and diaspora Nigerians.
Okay News reports that the directive, issued on December 18, 2025, applies to all banks and non-bank financial institutions. It covers withdrawals and online payments above $200 per day, $500 weekly, or $1,000 monthly, or naira equivalents.
CBN Director of Financial Policy and Regulation Dr Rita I. Sike signed the circular titled “Facilitation of Seamless Use of Foreign Cards.” It forms part of broader efforts to improve convenience and user experience.
Institutions must ensure uninterrupted local currency access via ATMs, point-of-sale terminals, and online platforms. All devices require proper configuration and certification to accept international cards.
The CBN emphasised transparent exchange rate disclosure. Rates must reflect prevailing official market levels, with full charges shown upfront and customer acceptance recorded.
Merchant settlements from foreign card transactions occur strictly in naira. Providers must maintain sufficient liquidity for obligations.
To combat fraud, robust monitoring systems must detect unusual patterns. Merchants face strengthened know-your-customer and anti-money laundering checks, including identification for suspicious cases.
Reports of suspicious activity go to the Nigeria Financial Intelligence Unit. Systems should minimise false declines on legitimate transactions.
Contactless options are required for low-value payments. Acquirers must manage chargebacks efficiently, retaining records for 12 months and training merchants quarterly.
Consumer complaints need timely resolution. Escalations to CBN trigger sanctions for non-compliance.
Tourists or returning Nigerians facing issues should contact the CBN’s Consumer Protection and Financial Inclusion Department. The apex bank will monitor adherence closely.
These measures balance enhanced security with seamless foreign card usage in Nigeria. They support tourism, diaspora remittances, and international payments.
The directive reinforces regulatory oversight in the evolving payments landscape amid naira stabilisation efforts.
