The Central Bank of Nigeria (CBN) has directed banks and non-bank financial institutions to configure automated teller machines (ATMs), point-of-sale (POS), and virtual payment terminals to accept foreign-issued payment cards, as part of efforts to improve access and security for international card users in the country.
In a circular dated December 18, 2025, and signed by Rita Sike, director of the financial policy and regulation department, the apex bank also mandated the implementation of multi-factor authentication for foreign card transactions exceeding $200 per day, $500 per week, and $1,000 per month, or their naira equivalents.
According to the CBN, the directive is aimed at ensuring seamless cash withdrawals, payments, and transfer services for tourists and Nigerians in the diaspora using foreign-issued cards while visiting the country.
The regulator instructed banks and non-bank acquirers to ensure that all ATMs, POS, and virtual terminals are fully configured to accept international cards issued outside Nigeria, comply with global card association standards, and possess the necessary certifications for uninterrupted transaction processing.
The CBN further directed financial institutions to maintain system availability, sufficient liquidity to settle transactions, and to ensure that merchants are paid in local currency (naira).
As part of the new guidelines, banks are required to clearly communicate applicable exchange rates — which must be market-driven and based on prevailing official rates — as well as all associated charges to customers before completing transactions. Users must explicitly accept these terms, with evidence retained by the institution.
The circular also mandates enhanced transaction monitoring to detect suspicious patterns in foreign card usage, strengthened know-your-customer (KYC) and anti-money laundering (AML) controls for merchants, and proper documentation for card-present transactions, including signed receipts and valid identification where necessary.
Banks and acquirers were also instructed to report suspicious transactions to the Nigeria Financial Intelligence Unit (NFIU) and recalibrate fraud-monitoring systems to reduce false declines on legitimate transactions.
In addition, the CBN said card acceptance devices must support contactless payments for low-value transactions, while customer complaints must be resolved within approved timelines, warning that unresolved escalations would attract regulatory sanctions.
The apex bank added that institutions must maintain robust chargeback management processes in line with card scheme rules and CBN guidelines, including proper record-keeping for at least 12 months and quarterly training for merchants on dispute resolution.
The CBN advised tourists and returning Nigerians experiencing difficulties using foreign-issued cards to report such issues to its consumer protection department via [email protected].
It warned that compliance with the directive will be closely monitored and that sanctions will be imposed on institutions found to be in violation.
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