The Central Bank of Nigeria (CBN) has directed banks and non-bank acquirers to implement multi-factor authentication for foreign card transactions exceeding $200 per day, as part of new measures to strengthen security and improve user experience for international cardholders in the country.
The directive was contained in a circular dated December 18, 2025, signed by the CBN’s Director of Financial Policy and Regulation, Rita Sike. The apex bank further instructed financial institutions to apply the same authentication requirements to transactions above $500 per week and $1,000 per month, and to ensure that point-of-sale (POS) terminals are properly configured for the use of foreign-issued cards.
According to the CBN, the measures are aimed at ensuring uninterrupted and efficient local currency withdrawals, payments, and transfer services for users of foreign-issued payment cards across Nigeria, particularly tourists and Nigerians in the diaspora visiting the country.
The regulator said the new framework is designed to improve access to funds, enhance transaction security, and boost overall user experience for foreign cardholders.
In addition, banks and non-bank acquirers were directed to configure all automated teller machines (ATMs), POS, and virtual terminals to accept international cards through Nigerian acquirers, comply fully with card association standards, and obtain the necessary certifications to enable seamless transaction processing. Institutions were also instructed to maintain high system availability to guarantee uninterrupted transaction processing.
The circular reads: “In this regard, banks and non-bank acquirers shall: implement multi-factor authentication for all withdrawals and online transactions exceeding $200 per day, $500 per week, and $1,000 per month (or its equivalent),” the circular reads.
“With respect to ATM cash withdrawal transactions, ensure compliance with approved cash withdrawal limits.
“Clearly communicate the applicable exchange rate, which shall be market- driven and based on the prevailing official rate, as well as other associated charges to users. Transactions should only be completed after the user has accepted the terms (with evidence obtained).
“Maintain sufficient liquidity position to settle transactions.
“Settle transactions for the merchant in local currency (naira).
“Implement transaction monitoring to detect unusual patterns in the use of foreign cards across all terminals.
“Strengthen know-your-customer and anti-money laundering controls for merchants handling foreign card payments.
“Require their merchants to ensure that all their copies of card-present transaction receipts are properly signed and to request valid identity documents where a transaction appears suspicious.”
In addition, banks and non-bank acquirers were asked to report suspicious transactions to the Nigeria Financial Intelligence Unit (NFIU) and recalibrate fraud-monitoring systems to reduce false declines on legitimate transactions.
The circular also said card acceptance devices must be equipped with contactless payment options for low-value transactions and that consumer complaints be resolved within approved timelines, warning that unresolved escalations to the apex bank would attract sanctions.
“Furthermore, acquirers shall implement and maintain robust, auditable chargeback management processes aligned with applicable card-scheme rules and CBN guidelines (including but not limited to timely case intake, evidence collation, refund execution, and post-incident analytics),” the apex bank said.
“Require, verify, and retain documentation (including terminal approval slip and signed merchant receipt, and item/service description) for card transactions for use in dispute resolution and chargebacks. The records shall be retained for a minimum of 12 months and be readily retrievable within 24 hours of request by the Acquirer or Scheme.
“Provide quarterly training to their merchants and agent networks on dispute handling and chargeback processes.”
The CBN said it will closely monitor compliance with the directive and impose appropriate sanctions on institutions found to be in breach.