The Central Bank of Nigeria (CBN) has instructed banks and non-bank acquirers to implement multi-factor authentication for foreign card transactions exceeding $200 per day, $500 per week, and $1,000 per month.
The move is aimed at strengthening security and improving user experience for international cardholders in Nigeria.
The directive, issued in a circular dated December 18, 2025, and signed by CBN’s Director of Financial Policy and Regulation, Rita Sike, also requires that ATMs, point-of-sale (POS), and virtual terminals be properly configured to accept international cards, comply with card association standards, and obtain the necessary certifications for seamless processing.
According to the apex bank, the measures are intended to ensure smooth local currency withdrawals, payments, and transfers, particularly for tourists and Nigerians in the diaspora.
The circular emphasizes that transactions should only be completed after users accept the terms, including applicable exchange rates and associated charges.
Banks and acquirers are also required to maintain sufficient liquidity, settle merchant transactions in naira, and monitor unusual transaction patterns to detect potential fraud.
Additionally, merchants must adhere to know-your-customer (KYC) and anti-money laundering controls, retain transaction documentation for at least 12 months, and provide contactless payment options for low-value transactions.
Any unresolved consumer complaints escalated to the CBN may attract sanctions.
The CBN also instructed banks and acquirers to train their merchant networks on dispute handling and chargeback processes, while suspicious transactions must be reported to the Nigeria Financial Intelligence Unit (NFIU).
The regulator said compliance with these directives will be closely monitored, and sanctions will be imposed on institutions found in violation.
