The Central Bank of Nigeria (CBN) has told banks and other financial institutions to use multi-factor authentication for transactions with foreign-issued payment cards.
This is part of new steps to boost security and make things easier for users across the country.
The instruction was shared in a circular dated December 18, 2025, from the Financial Policy and Regulation Department of the Central Bank, signed by its Director, Dr Rita I. Sike.
The circular, called “Facilitation of Seamless Use of Foreign Cards,” says the rule will apply to all withdrawals and online transactions over $200 per day, $500 per week, and $1,000 per month, or the same amounts in naira.
The Central Bank said this change is meant to make transactions safer and improve the experience for tourists and Nigerians coming back from abroad.
The circular read, “All banks and non-bank financial institutions are required to implement multi-factor authentication for all withdrawals and online transactions exceeding $200 per day, $500 per week, and $1,000 per month (or its equivalent).”
The CBN further told banks and non-bank acquirers to make sure people using foreign-issued cards can always withdraw, pay, and transfer local currency anywhere in Nigeria, adding that financial institutions must maintain high system availability to guarantee seamless transaction processing.
The Central Bank also said banks must fully follow global card association standards. Terminals need to have the right certifications or renewals to make sure card transactions work smoothly.
Under With the new rules, all payments to merchants from foreign card transactions must be done in naira. Financial institutions must also keep enough funds to meet their payment obligations on time.urb fraud, the CBN ordered banks and acquirers to deploy robust transaction monitoring systems capable of detecting unusual usage patterns involving foreign cards across all terminals.
Merchants who take foreign card payments must go through extra know-your-customer and anti-money laundering checks.nsactions appear suspicious, merchants must request valid means of identification and ensure that card-present transaction receipts are duly signed.
Suspicious transactions, the circular noted, must be reported promptly to the Nigerian Financial Intelligence Unit in line with existing regulations.
The regulator stressed the need for clear pricing and settlement. Banks and acquirers must tell customers the exchange rates before finishing any transaction.
According to the CBN, exchange rates for foreign card transactions must follow the current official market rate, and all charges must be shown to customers before the transaction.it added, should only be completed after users have explicitly accepted the terms, with evidence of such acceptance properly retained.
The Central Bank also told acquirers to hold training every quarter for merchants and agent networks on how to handle disputes and chargebacks.
The CBN warned that complaints from foreign card transactions must be settled within the set time limits. If issues are sent to the CBN, there will be penalties.
Tourists and NigerianTourists and Nigerians coming back from abroad who have trouble using foreign-issued cards should report these problems to the CBN’s Consumer Protection and Financial Inclusion Department.
For small transactions, the circular said card readers must have contactless payment options.
The CBN also set stricter rules for acquirers about handling disputes and chargebacks are required to maintain robust, auditable chargeback management processes in line with applicable card scheme rules and CBN guidelines. This includes timely case intake, evidence collation, refund execution, and post-incident analysis.
Institutions were further instructed to retain transaction Institutions must keep transaction records like terminal approval slips, signed merchant receipts, and item or service descriptions for at least 12 months. These records must be ready within 24 hours if requested.
