The Central Bank of Nigeria (CBN) has issued a sweeping directive aimed at ensuring seamless and uninterrupted use of foreign-issued payment cards across the country, particularly for tourists, visitors, and Nigerians returning from abroad.
In a circular signed by the Director of the Financial Policy and Regulation Department, Dr. Rita Sike, the apex bank instructed all deposit money banks and non-bank acquirers to immediately configure their automated teller machines (ATMs), point-of-sale (POS) terminals, and virtual payment platforms to fully accept international cards processed through Nigerian acquirers.
According to the CBN, all card acceptance devices operating in Nigeria must comply strictly with global card association standards and possess the required certifications to enable smooth transaction processing without unnecessary declines.
New Authentication Thresholds Introduced
As part of efforts to strengthen security and curb fraud, the CBN mandated the implementation of multi-factor authentication (MFA) for foreign card transactions above specific thresholds. Banks and acquirers are required to apply enhanced authentication measures to:
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All withdrawals and online transactions exceeding $200 per day
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Transactions above $500 per week
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Transactions exceeding $1,000 per month, or their naira equivalent
For ATM cash withdrawals, financial institutions must also ensure full compliance with existing CBN-approved cash withdrawal limits.
Transparency on Exchange Rates and Charges
The apex bank further directed that users of foreign cards must be clearly informed of the applicable exchange rate, which must be market-driven and based on the prevailing official rate. All charges associated with the transaction must be disclosed upfront, and transactions should only proceed after the customer has explicitly accepted the stated terms, with verifiable evidence of consent.
Banks and non-bank acquirers were also instructed to maintain sufficient liquidity to settle transactions promptly, with all merchant settlements to be completed in local currency (naira).
Enhanced Monitoring, KYC and AML Measures
To curb abuse and suspicious activities, the CBN ordered acquirers to deploy advanced transaction-monitoring systems capable of detecting unusual usage patterns involving foreign-issued cards across all terminals.
Merchants handling foreign card payments are to be subjected to strengthened know-your-customer (KYC) and anti-money laundering (AML) controls. Where transactions appear suspicious, merchants must request valid identification documents and ensure that card-present transaction receipts are properly signed and retained.
Chargebacks, Complaints and Contactless Payments
The circular also emphasized the need for robust and auditable chargeback management systems aligned with card-scheme rules and CBN guidelines. Acquirers must ensure timely handling of disputes, proper documentation, refund execution, and post-incident analysis.
All transaction records, including terminal approval slips, signed receipts, and service descriptions, must be retained for a minimum of 12 months and made available within 24 hours upon request by an acquirer or card scheme.
Additionally, card acceptance devices are required to support contactless payment options for low-value transactions, while consumer complaints must be resolved within approved regulatory timelines. Acquirers are also mandated to provide quarterly training for merchants and agents on dispute resolution and chargeback procedures.
Reporting and Consumer Redress
The CBN directed banks and acquirers to report all suspicious transactions involving foreign-issued cards to the Nigeria Financial Intelligence Unit (NFIU) and recalibrate fraud-detection systems to reduce false declines on legitimate transactions.
Tourists and Nigerians returning from abroad who encounter difficulties using their foreign-issued cards were advised to report such incidents to the CBN’s Consumer Protection Department via complaint4cbn@cbn.gov.ng.
The directive underscores the CBN’s broader push to modernize Nigeria’s payment ecosystem, improve the user experience for international cardholders, and strengthen safeguards against fraud while supporting the country’s growing tourism and digital economy.
Emma Tochi ✔
Godwin Okafor is the Publisher & CEO of Naija247news Media Group LLC, an independent investigative news platform delivering accurate, data-driven reporting on Nigerian and global politics, economy, finance, and business. Founded in October 2010, Naija247news specializes in developmental journalism, providing timely insights and analysis to readers across Nigeria and the diaspora.
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