The Central Bank of Nigeria (CBN) has directed banks and other financial institutions to implement multi-factor authentication for transactions involving foreign-issued payment cards as part of fresh measures to strengthen security and improve user experience across the country.
The directive was contained in a circular dated December 18, 2025, issued by the Financial Policy and Regulation Department of the apex bank and signed by its Director, Dr Rita I. Sike.
According to the circular titled “Facilitation of Seamless Use of Foreign Cards”, the requirement will apply to all withdrawals and online transactions exceeding $200 daily, $500 weekly, and $1,000 monthly, or their naira equivalents.
The apex bank stated that the move was aimed at enhancing transaction security while improving the experience of tourists and Nigerians returning from the diaspora.
The circular read, “All banks and non-bank financial institutions are required to 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 CBN further directed banks and non-bank acquirers to ensure uninterrupted access to local currency withdrawals, payments, and transfers for users of foreign-issued cards across Nigeria.
It stressed that financial institutions must maintain high system availability to guarantee seamless transaction processing, adding that all automated teller machines, point-of-sale terminals, and web-based payment platforms must be properly configured to accept international cards routed through Nigerian acquirers.
The apex bank also mandated full compliance with global card association standards, noting that terminals must possess the required certifications or recertifications to support smooth card transactions.
Under the new framework, all merchant settlements arising from foreign card transactions are to be conducted strictly in naira. Financial institutions were also instructed to maintain sufficient liquidity to meet settlement obligations as and when due.
To curb fraud, the CBN ordered banks and acquirers to deploy robust transaction monitoring systems capable of detecting unusual usage patterns involving foreign cards across all terminals.
Merchants accepting foreign card payments are to be subjected to enhanced know-your-customer and anti-money laundering checks.
Where transactions appear suspicious, merchants must request valid means of identification and ensure that card-present transaction receipts are duly signed.
Suspicious transactions, the circular noted, must be reported promptly to the Nigerian Financial Intelligence Unit in line with existing regulations.
The regulator emphasised transparency in pricing and settlement, directing banks and acquirers to clearly communicate applicable exchange rates to customers before completing transactions.
According to the CBN, exchange rates for foreign card transactions must be market-driven and based on the prevailing official rate, with all associated charges disclosed upfront.
Transactions, it added, should only be completed after users have explicitly accepted the terms, with evidence of such acceptance properly retained.
The apex bank further mandated acquirers to organise quarterly training for merchants and agent networks on dispute resolution and chargeback procedures.
It warned that consumer complaints arising from foreign card transactions must be resolved within approved timelines, stressing that escalations to the CBN would attract appropriate sanctions.
Tourists and Nigerians returning from the diaspora who encounter challenges using foreign-issued cards were advised to report such incidents to the CBN’s Consumer Protection and Financial Inclusion Department.
In a bid to improve user experience, the CBN directed financial institutions to recalibrate their fraud-monitoring systems to minimise false declines on legitimate foreign card transactions.
For low-value transactions, the circular added that card acceptance devices must be equipped with contactless payment options.
The CBN also introduced stricter obligations on acquirers regarding dispute resolution and chargebacks.
Acquirers are required to maintain robust, auditable chargeback management processes in line with applicable card scheme rules and CBN guidelines. This includes timely case intake, evidence collation, refund execution, and post-incident analysis.
Institutions were further instructed to retain transaction records, including terminal approval slips, signed merchant receipts, and item or service descriptions, for a minimum of 12 months, with such records made available within 24 hours upon request.