The Central Bank of Nigeria (CBN) has introduced new measures to improve the use of foreign‑issued payment cards in the country. In a circular dated 18 December 2025, the CBN directed all banks and financial institutions to implement multi‑factor authentication for foreign card transactions. This aims to strengthen security while enhancing the experience of tourists and Nigerians returning from abroad.
The new requirement applies to all withdrawals and online transactions that exceed $200 daily, $500 weekly, or $1,000 monthly, or their naira equivalents. Banks and non‑bank financial institutions must ensure uninterrupted and efficient local‑currency withdrawals, payments, and transfers for users of foreign‑issued cards nationwide. All ATMs, point‑of‑sale terminals, and virtual or web‑based payment platforms must be configured to accept international cards routed through Nigerian acquirers.
To reduce fraud risks, financial institutions are 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 introduced stricter obligations for acquirers regarding dispute resolution and chargebacks. Acquirers must maintain robust, auditable chargeback‑management processes aligned with card‑scheme rules and CBN guidelines, including timely case intake, evidence collation, refund execution, and post‑incident analysis. Consumer complaints arising from foreign‑card transactions must be resolved within approved timelines; escalations to the central bank will attract appropriate sanctions.
Tourists and Nigerians returning from abroad who experience difficulties using foreign‑issued cards are advised to report incidents to the CBN’s Consumer Protection and Financial Inclusion Department. The CBN expects these measures to improve the overall experience of foreign‑card users in Nigeria while reducing the risk of fraudulent transactions.
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