The Central Bank of Nigeria (CBN) has introduced new measures to enhance the security and reliability of foreign-issued payment card transactions in the country. In a circular dated December 18, 2025, the CBN directed banks and financial institutions to implement multi-factor authentication for transactions above certain thresholds. This move aims to strengthen transaction security and improve the payment experience for tourists and Nigerians returning from abroad.
The new policy requires banks and non-bank financial institutions to apply multi-factor authentication to all withdrawals and online transactions exceeding daily, weekly, and monthly thresholds of $200, $500, and $1,000, respectively, or their naira equivalents. This directive is part of the CBN’s efforts to boost convenience, safety, and user confidence in the use of foreign-issued cards nationwide.
To facilitate seamless transactions, banks and non-bank acquirers must ensure that automated teller machines, point-of-sale terminals, and online payment platforms are configured to accept international cards routed through Nigerian acquirers. These platforms must comply with global card association standards and possess the necessary certifications to guarantee smooth transaction processing. All settlements from foreign card transactions will be conducted in naira, with financial institutions expected to maintain adequate liquidity to meet settlement obligations promptly.
The CBN has also mandated the deployment of advanced transaction-monitoring systems to identify unusual or suspicious usage patterns involving foreign cards. Merchants accepting foreign card payments will be subject to enhanced know-your-customer and anti-money laundering requirements, including requesting valid identification and ensuring that card-present transaction receipts are duly signed.
To promote transparency, banks and acquirers must clearly disclose applicable exchange rates and charges to customers before transactions are completed. Exchange rates must be market-based and fully disclosed upfront, with transactions proceeding only after customers have expressly accepted the terms. The CBN has also emphasized the need for timely resolution of consumer complaints related to foreign card transactions, warning that unresolved cases may attract sanctions.
In a bid to improve user experience, financial institutions have been instructed to recalibrate their fraud-monitoring systems to reduce unnecessary declines of legitimate foreign card transactions. The CBN has also introduced stricter requirements for chargeback and dispute management, including the establishment of auditable chargeback processes and the retention of transaction records for a minimum of 12 months.
These new measures are expected to enhance the overall payment experience for tourists and Nigerians returning from abroad, while also reducing the risk of fraudulent transactions. The CBN’s efforts to improve the security and reliability of foreign-issued payment card transactions are part of its broader strategy to promote financial inclusion and facilitate economic growth in Nigeria.