The Central Bank of Nigeria (CBN) has issued sweeping new directives aimed at improving the use of foreign-issued payment cards across the country while strengthening transaction security and combating fraud.
In a circular dated December 18, 2025, the apex bank’s Financial Policy and Regulation Department, under the signature of Director Dr. Rita I. Sike, outlined comprehensive requirements for all banks and non-bank financial institutions operating in Nigeria.
At the heart of the new regulations is a mandate requiring multi-factor authentication for foreign card transactions exceeding specific thresholds. Financial institutions must now implement additional security layers for all withdrawals and online transactions above $200 daily, $500 weekly, and $1,000 monthly, or their naira equivalents.
The CBN stated that these measures are designed to strike a balance between enhanced security and improved user experience, particularly for tourists and members of the Nigerian diaspora returning home. The regulator emphasized that the changes should facilitate seamless transactions while protecting against fraudulent activities.
Beyond authentication protocols, the circular establishes stringent operational standards for financial institutions. Banks and non-bank acquirers must ensure uninterrupted local currency withdrawals, payments, and transfers for foreign cardholders nationwide. This includes maintaining high system availability across all platforms—ATMs, point-of-sale terminals, and web-based payment systems—all of which must be properly configured to accept international cards.
The CBN has mandated full compliance with global card association standards, requiring all terminals to possess current certifications or recertifications. Financial institutions must also maintain adequate liquidity to fulfill settlement obligations, with all merchant settlements from foreign card transactions to be conducted strictly in naira.
Recognizing the fraud risks associated with cross-border transactions, the central bank has ordered institutions to deploy robust monitoring systems capable of identifying unusual usage patterns on foreign cards. These systems must be recalibrated to reduce false declines on legitimate transactions—a common complaint among international visitors.
Merchants accepting foreign cards will face strengthened know-your-customer and anti-money laundering requirements. For suspicious transactions, merchants must verify valid identification and ensure proper documentation, including signed receipts for card-present transactions. Any irregularities must be promptly reported to the Nigerian Financial Intelligence Unit.
In a move toward greater transparency, the CBN has mandated that banks and acquirers clearly communicate exchange rates before completing transactions. These rates must be market-driven, based on prevailing official rates, with all associated charges disclosed upfront. Critically, transactions can only proceed after users explicitly accept the terms, and institutions must retain evidence of this acceptance.
Acquirers are required to provide quarterly training to merchants and agent networks on dispute handling and chargeback processes. The circular establishes strict timelines for resolving consumer complaints, warning that escalations to the central bank will result in appropriate sanctions.
To facilitate low-value transactions, card acceptance devices must be equipped with contactless payment options, reflecting global payment trends and user preferences.
The new regulations introduce comprehensive obligations around chargeback management. Institutions must maintain auditable processes aligned with card scheme rules and CBN guidelines, covering case intake, evidence collection, refund execution, and post-incident analysis. Transaction documentation—including terminal approval slips, signed receipts, and service descriptions—must be retained for at least 12 months and made retrievable within 24 hours upon request.
Tourists and diaspora Nigerians experiencing difficulties with foreign-issued cards have been directed to report incidents to the CBN’s Consumer Protection and Financial Inclusion Department. This dedicated channel underscores the regulator’s commitment to addressing user concerns and ensuring accountability among financial institutions.
The circular represents a significant step in Nigeria’s efforts to modernize its payment infrastructure and align with international standards while maintaining robust security protocols. As the country seeks to boost tourism and facilitate diaspora engagement, these measures aim to remove barriers to seamless financial transactions while protecting all parties from fraud and abuse.
Financial institutions are expected to implement these requirements promptly, with compliance being closely monitored by the central bank.
WHAT YOU SHOULD KNOW
Starting December 18, 2025, the Central Bank of Nigeria now requires multi-factor authentication for all foreign card transactions exceeding $200 daily, $500 weekly, or $1,000 monthly. This measure aims to enhance security while making it easier for tourists and diaspora Nigerians to use their foreign cards across Nigeria.
Banks must ensure their systems accept international cards seamlessly, display transparent exchange rates upfront, and resolve complaints quickly—or face sanctions. If you’re visiting Nigeria or returning from abroad and experience issues using your foreign card, report directly to the CBN’s Consumer Protection Department.
