Central Bank of Nigeria (CBN) has directed banks and other payment service providers to strengthen infrastructure for foreign-issued card transactions as part of broader efforts to improve payment access and security in the country.
Gatekeepers News reports that in a circular dated December 18 and signed by Rita Sike, director of the financial policy and regulation department, the apex bank instructed institutions to introduce multi-factor authentication for foreign card transactions above specified limits.
The requirement applies to transactions exceeding $200 per day, $500 per week, and $1,000 per month.
According to CBN, the directive is designed to support seamless cash withdrawals and electronic payments for visitors, tourists, and Nigerians in the diaspora, while also reducing fraud risks associated with cross-border card usage.
The move aligns with Nigeria’s push to modernise its payment system and promote cashless transactions in line with global best practices.
Banks and non-bank acquirers were also ordered to configure all ATMs, point-of-sale terminals, and virtual payment channels to accept international cards issued outside Nigeria, provided they comply with card scheme standards and certification requirements.
The regulator emphasised the need for high system availability to prevent transaction failures and service disruptions.
CBN further directed institutions to ensure transparency by clearly displaying applicable exchange rates and charges before transactions are completed.
Settlements to merchants are to be made in naira, while adequate liquidity must be maintained to support foreign card transactions.
To strengthen oversight, financial institutions were asked to enhance transaction monitoring, reinforce know-your-customer and anti-money laundering controls, and report suspicious activities to the Nigerian Financial Intelligence Unit.
The apex bank also warned that unresolved customer complaints escalated to the CBN could attract sanctions.
The regulator said it will closely monitor compliance with the directive, adding that the measures are expected to boost confidence in Nigeria’s payment ecosystem and improve the experience of foreign card users across the country.
