The Central Bank of Nigeria (CBN) has issued a sweeping directive to financial institutions, mandating the full configuration of all payment terminals to accept foreign-issued cards. This move aims to guarantee smooth and uninterrupted transaction experiences for international visitors and Nigerian returnees across the country.
New Security Protocols for High-Value Transactions
In a circular dated December 22, 2025, and signed by Dr. Rita Sike, Director of the Financial Policy and Regulation Department, the apex bank laid out specific operational guidelines. A key component is the introduction of enhanced security for larger transactions. Banks and non-bank acquirers must implement multi-factor authentication for all foreign card withdrawals and online transactions exceeding $200 per day, $500 per week, and $1,000 per month.
The directive explicitly orders these institutions to configure every automated teller machine (ATM), point-of-sale (POS) terminal, and virtual terminal to seamlessly process international cards through Nigerian acquirers. Full compliance with global card association standards and possession of necessary certifications are non-negotiable requirements.
Transparency and Consumer Protection Measures
The CBN's circular emphasizes transparency and robust consumer protection. Financial service providers are instructed to:
- Clearly communicate the applicable, market-driven exchange rate based on the prevailing official rate, along with all associated charges, to users before transaction completion.
- Only finalize a transaction after obtaining the user's acceptance of the terms, with evidence of this acceptance.
- Maintain sufficient liquidity to settle transactions and pay merchants in the local currency, the Naira.
- Equip all card acceptance devices with contactless payment options for low-value transactions.
- Resolve consumer complaints within strictly approved timelines.
Furthermore, the regulator has strengthened the framework for dispute resolution. Acquirers must implement auditable chargeback management processes, retain detailed transaction documentation for a minimum of 12 months, and provide quarterly training to merchants and agents on handling disputes.
Enhanced Fraud Monitoring and Suspicious Activity Reporting
To balance convenience with security, the CBN has mandated several controls. Banks must implement continuous transaction monitoring to detect unusual patterns in foreign card usage across all terminals. They are also required to strengthen Know-Your-Customer (KYC) and anti-money laundering controls specifically for merchants who handle foreign card payments.
A critical instruction is for banks to recalibrate their fraud-monitoring systems to reduce the incidence of false declines on legitimate transactions. All suspicious activities must be promptly reported to the Nigeria Financial Intelligence Unit (NFIU). Merchants are also tasked with ensuring signed transaction receipts and requesting valid identity documents for any transaction that appears suspicious.
The CBN concluded by urging tourists and Nigerian returnees who encounter difficulties using their foreign-issued cards to report such incidents directly to the bank's Consumer Protection Department. This directive represents a significant step towards integrating Nigeria's payment ecosystem with global standards, aiming to boost tourism and ease financial operations for international cardholders.
