The Central Bank of Nigeria (CBN) has introduced new measures to enhance the seamless use of foreign-issued payment cards in the country. In a circular dated December 18, 2025, the CBN directed all banks and financial institutions to implement multi-factor authentication for foreign card transactions. This move aims to strengthen transaction security while improving the experience of tourists and Nigerians returning from abroad.
The new requirement applies to all withdrawals and online transactions exceeding $200 daily, $500 weekly, and $1,000 monthly, or their naira equivalents. The CBN has mandated that all banks and non-bank financial institutions ensure uninterrupted and efficient local currency withdrawals, payments, and transfers for users of foreign-issued cards nationwide. Additionally, all ATMs, point-of-sale terminals, and virtual or web-based payment platforms must be properly configured to accept international cards routed through Nigerian acquirers.
To reduce fraud risks, financial institutions have been instructed to implement robust transaction monitoring systems capable of detecting unusual usage patterns involving foreign cards. Merchants handling foreign card payments will also be subject to strengthened know-your-customer and anti-money laundering controls. The CBN has emphasized transparency in pricing and settlement, requiring banks and acquirers to clearly communicate applicable exchange rates to customers before completing transactions.
The regulator has also introduced stricter obligations for acquirers around dispute resolution and chargebacks. Acquirers are required to implement and maintain robust, auditable chargeback management processes aligned with applicable card scheme rules and CBN guidelines. This includes timely case intake, evidence collation, refund execution, and post-incident analysis.
The CBN’s move is expected to improve the overall experience of foreign card users in Nigeria, while also reducing the risk of fraudulent transactions. The apex bank has warned that consumer complaints arising from foreign card transactions must be resolved within approved timelines, and escalations to the central bank will attract appropriate sanctions. Tourists and Nigerians returning from abroad who experience difficulties using foreign-issued cards have been advised to report such incidents to the CBN’s Consumer Protection and Financial Inclusion Department.