The Central Bank of Nigeria (CBN) has taken decisive action to address a major pain point for international visitors and Nigerians returning from abroad. The apex bank has issued a fresh directive to all deposit money banks and payment service providers, mandating them to significantly improve the acceptance and reliability of foreign-issued payment cards within the country.
Directive Targets Persistent Transaction Failures
The order, contained in a circular dated December 18, 2025, and signed by Rita I. Sike, the Director of the Financial Policy and Regulation Department, applies to all financial institutions operating in Nigeria's payment space. This includes major banks like Access Bank, Zenith Bank, and United Bank for Africa (UBA).
The CBN's move is a direct response to years of complaints from tourists and diaspora Nigerians who frequently face difficulties accessing their funds. Common issues include declined transactions, unexplained system downtime, unclear charges, and various operational bottlenecks that have eroded confidence in the local payment system.
Mandatory Upgrades for ATMs, POS, and Online Platforms
Under the new rules, banks are now required to ensure that their entire payment infrastructure is fully compatible with international cards. This includes:
- Configuring all Automated Teller Machines (ATMs) and Point-of-Sale (POS) terminals to accept foreign cards supported by Nigerian acquirers.
- Ensuring virtual payment platforms and online gateways are properly set up for international transactions.
- Maintaining full compliance with global card scheme standards and necessary certifications.
- Guaranteeing high system uptime to minimize service disruptions that lead to failed payments.
The CBN stated that enhancing the user experience for this demographic is crucial for strengthening overall trust in Nigeria's financial infrastructure and supporting the growth of tourism and cross-border commerce.
Balancing Security with Seamless Access
While pushing for smoother transactions, the Central Bank also emphasized that security must not be compromised. Banks have been instructed to implement multi-factor authentication for withdrawals and online transactions above certain limits. Crucially, they must also recalibrate their fraud-monitoring systems to reduce the incidence of false declines on legitimate foreign card usage.
The regulator warned explicitly against deploying overly restrictive controls that unfairly block genuine customers from accessing their funds, noting that such practices damage the reputation of the entire financial system.
Transparency on Pricing and Exchange Rates
A significant part of the new directive focuses on transparency. Financial institutions are now mandated to clearly disclose all applicable exchange rates and charges to customers before a transaction is completed. The CBN stipulated that exchange rates should be market-driven and aligned with the prevailing official rate.
Transactions can only proceed after the customer explicitly accepts the stated terms, and banks must retain evidence of this acceptance for audit purposes.
Liquidity, Monitoring, and Consumer Protection
The circular outlines several other key requirements:
- Banks must maintain sufficient liquidity to settle foreign card transactions promptly and ensure merchants are paid in Naira without delay.
- Payment service providers must deploy robust transaction-monitoring systems and strengthen KYC/AML controls for merchants handling foreign card payments.
- Merchants are to ensure proper signing of receipts for card-present transactions and request valid ID for suspicious activities.
- All acquirers must implement auditable chargeback processes and retain transaction records for at least 12 months.
The CBN has warned that consumer complaints related to foreign card transactions must be resolved within approved timelines. Unresolved cases escalated to the apex bank could attract sanctions.
Tourists and returning Nigerians experiencing difficulties are advised to report incidents directly to the CBN's Consumer Protection and Financial Inclusion Department. This directive reaffirms the regulator's commitment to protecting consumers and improving the overall reliability of Nigeria's payment ecosystem.
