The Central Bank of Nigeria (CBN) has rolled out fresh measures to strengthen the security and reliability of foreign-issued payment card transactions in the country, directing banks and other financial institutions to adopt multi-factor authentication (MFA) for such transactions.

The directive was contained in a circular dated December 18, 2025, issued by the apex bank’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 MFA must be applied to all withdrawals and online transactions exceeding daily, weekly and monthly thresholds of $200, $500 and $1,000 respectively, or their naira equivalents.

According to the CBN, the policy is aimed at enhancing transaction security while improving the payment experience for tourists and Nigerians returning from the diaspora.

The regulator noted that the initiative would boost convenience, safety and user confidence in the use of foreign-issued cards across the country.

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 nationwide.

They are also mandated to maintain high system uptime to minimise service disruptions during transaction processing.

The CBN further directed that all automated teller machines (ATMs), point-of-sale (PoS) terminals and online payment platforms be properly configured to accept international cards routed through Nigerian acquirers. Such platforms must comply fully with global card association standards and possess the requisite certifications or recertifications to guarantee smooth 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 apex bank mandated the deployment of advanced transaction-monitoring systems capable of detecting unusual or suspicious usage patterns involving foreign cards.

Merchants accepting foreign card payments are to be subjected to enhanced know-your-customer (KYC) and anti-money laundering (AML) requirements, including the verification of valid identification where necessary and the signing of card-present transaction receipts.

Any transaction considered suspicious must be reported promptly to the Nigerian Financial Intelligence Unit (NFIU) in line with existing regulations.
The CBN also stressed the need for transparency in pricing, directing banks and acquirers 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 disclosed upfront, with transactions proceeding only after customers have expressly accepted the terms.

As part of capacity building, acquirers are required to organise quarterly training for merchants and agent networks on dispute resolution and chargeback management.

Consumer complaints related to foreign card transactions must be resolved within stipulated timelines, with unresolved cases escalated to the CBN attracting appropriate sanctions.

Tourists and returning Nigerians who experience 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, particularly for visitors, financial institutions were instructed to recalibrate fraud-monitoring systems to reduce unnecessary declines of legitimate transactions.

For low-value payments, card acceptance devices must also support contactless payment options.

The circular also introduced stricter requirements for chargeback and dispute management, mandating acquirers to establish auditable processes consistent with card scheme rules and CBN guidelines.

Transaction records are to be retained for a minimum of 12 months and made available within 24 hours upon request.