The Central Bank of Nigeria has directed deposit money banks and non-bank acquirers to implement multi-factor authentication for transactions carried out with foreign-issued cards that exceed $200 per day. The directive was contained in a circular dated December 18 and signed by Rita Sike, Director of the Financial Policy and Regulation Department. The CBN also extended the requirement to transactions above $500 per week and $1,000 per month, while instructing operators to configure point-of-sale terminals to support the use of foreign cards.
According to the apex bank, the policy is intended to ensure seamless access to local currency withdrawals, payments, and transfer services for users of foreign cards across Nigeria. It is also aimed at expanding access to funds, strengthening transaction security, and improving the experience of tourists and Nigerians in the diaspora visiting the country. The CBN further directed banks and non-bank acquirers to configure all automated teller machines, POS terminals, and virtual terminals to accept international cards through Nigerian acquirers. Institutions were also told to comply fully with card scheme standards and obtain the necessary certifications to support smooth transaction processing, while ensuring continuous system availability to prevent service disruptions.
“In this regard, banks and non-bank acquirers shall implement multi-factor authentication for all withdrawals and online transactions exceeding $200 per day, $500 per week, and $1,000 per month, or their equivalent,” the circular stated. For ATM cash withdrawals, institutions were instructed to comply with approved withdrawal limits and clearly communicate applicable exchange rates, which must be market-driven and based on the prevailing official rate, along with any related charges. Transactions are to be completed only after users have accepted the stated terms, with evidence obtained.
Financial institutions were also directed to maintain sufficient liquidity to settle transactions, ensure merchants are paid in local currency, and implement transaction monitoring systems to detect unusual usage patterns of foreign cards across all terminals. The CBN also called for stronger know-your-customer and anti-money laundering controls for merchants that process foreign card payments. Merchants are to ensure that card-present transaction receipts are properly signed and that valid identification is requested where transactions appear suspicious. Banks and acquirers were also instructed to report suspicious activities to the Nigeria Financial Intelligence Unit and improve fraud monitoring systems to minimise wrongful declines of legitimate transactions.
The circular further required card acceptance devices to support contactless payments for low-value transactions and directed institutions to resolve consumer complaints within approved timelines, warning that unresolved cases escalated to the CBN would attract sanctions. In addition, the CBN mandated the establishment of robust and auditable chargeback management processes in line with card scheme rules and regulatory guidelines. Institutions must retain relevant transaction records for at least 12 months and ensure they can be retrieved within 24 hours when required. Quarterly training for merchants and agent networks on dispute handling and chargeback procedures was also mandated.
The CBN advised tourists and returning Nigerians who encounter difficulties using foreign-issued cards to report such cases to its consumer protection department via [complaint4cbn@cbn.gov.ng](mailto:complaint4cbn@cbn.gov.ng). It added that compliance with the directive will be closely monitored and that sanctions will be applied to institutions that fail to adhere to the guidelines.
Source: https://businessday.ng/
