The Central Bank of Nigeria (CBN) has introduced new measures to enhance the security and reliability of foreign‑issued payment card transactions. In a circular dated December 18, 2025, the CBN directed banks and financial institutions to implement multi‑factor authentication for transactions that exceed specific thresholds. The policy requires multi‑factor authentication for all withdrawals and online transactions above daily, weekly, and monthly limits of $200, $500 and $1,000 (or their naira equivalents). This initiative aims to strengthen transaction security and improve the payment experience for tourists and Nigerians returning from abroad.
Banks and non‑bank financial institutions must ensure that ATMs, 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 hold the necessary certifications to guarantee smooth processing. All settlements from foreign‑card transactions will be conducted in naira, and institutions are expected to maintain adequate liquidity to meet settlement obligations promptly.
The CBN also mandated the deployment of advanced transaction‑monitoring systems to identify unusual or suspicious usage patterns involving foreign cards. Merchants accepting such payments will face enhanced know‑your‑customer and anti‑money‑laundering requirements, including the request for valid identification and the collection of signed card‑present transaction receipts.
To promote transparency, banks and acquirers must clearly disclose applicable exchange rates and charges before transactions are completed. Exchange rates must be market‑based, fully disclosed upfront, and transactions may proceed only after customers expressly accept the terms. The CBN emphasized timely resolution of consumer complaints related to foreign‑card transactions, warning that unresolved cases may attract sanctions.
Financial institutions have been instructed to recalibrate fraud‑monitoring systems to reduce unnecessary declines of legitimate foreign‑card transactions. Additionally, stricter requirements for chargeback and dispute management have been introduced, including the establishment of auditable chargeback processes and the retention of transaction records for at least 12 months.
These measures are expected to enhance the overall payment experience for tourists and returning Nigerians while reducing the risk of fraudulent transactions. The CBN’s efforts to improve the security and reliability of foreign‑issued payment cards form part of its broader strategy to promote financial inclusion and facilitate economic growth in Nigeria.
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