The Central Bank of Nigeria (CBN) has announced new measures to strengthen the security and reliability of transactions involving foreign-issued payment cards in Nigeria, mandating the adoption of multi-factor authentication (MFA) by banks and other financial institutions.

The directive was issued in a circular dated December 18, 2025, by the CBN’s Financial Policy and Regulation Department, 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 MFA for 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 apex bank, the policy is intended to enhance transaction security while improving the payment experience for tourists and Nigerians returning from the diaspora. The CBN said the initiative is aimed at boosting convenience, safety, and user confidence in the nationwide use of foreign-issued cards.

Under the new framework, banks and non-bank acquirers must ensure seamless access to local currency withdrawals, payments, and transfers for holders of foreign cards across Nigeria. Institutions are also required 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. These platforms must comply fully with global card association standards and possess the necessary certifications or recertifications to ensure smooth transaction processing.

All settlements arising from foreign card transactions are to be conducted strictly in naira, with financial institutions expected to maintain sufficient liquidity to meet settlement obligations promptly.

To curb fraud, the regulator mandated the deployment of advanced transaction-monitoring systems capable of detecting unusual or suspicious foreign card usage. Merchants accepting foreign cards are also subject to enhanced know-your-customer (KYC) and anti-money laundering (AML) requirements. Where necessary, merchants must request valid identification and ensure that card-present transaction receipts are duly signed.

Any transaction considered suspicious must be reported immediately to the Nigerian Financial Intelligence Unit (NFIU) in line with existing regulatory requirements.

The CBN also stressed the importance of pricing transparency. 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 may proceed only after customers have expressly accepted the terms, with proof of consent properly documented.

As part of merchant capacity development, acquirers are mandated to conduct quarterly training 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 stipulated timelines, noting that unresolved cases escalated to the CBN would attract appropriate sanctions.

Tourists and returning Nigerians experiencing difficulties with foreign-issued cards were advised to lodge complaints with the CBN’s Consumer Protection and Financial Inclusion Department.

To further enhance user experience, particularly for visitors, financial institutions were instructed to recalibrate their fraud-monitoring systems to reduce unnecessary declines of legitimate foreign card 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. Acquirers are required to establish auditable chargeback processes in line with card scheme rules and CBN guidelines, covering timely case handling, evidence gathering, refunds, and post-incident reviews.

Transaction records—including terminal approval slips, signed receipts, and descriptions of goods or services—must be retained for a minimum of 12 months and made available within 24 hours upon request.