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CBN mandates multi-factor authentication for foreign card withdrawals and online payments above set thresholds.
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Foreign card transactions to be settled strictly in naira under enhanced monitoring rules
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Banks, fintechs face stricter compliance on security, transparency, and consumer protection
The Central Bank of Nigeria (CBN) has directed banks and other financial institutions to implement multi-factor authentication (MFA) for transactions carried out with foreign-issued payment cards, in a move aimed at strengthening payment security and boosting user confidence.
The directive is contained in a circular dated December 18, 2025, issued by the CBN’s Financial Policy and Regulation Department and signed by its Director, Dr Rita I. Sike.
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According to the circular, MFA will be mandatory for foreign card withdrawals and online transactions that exceed daily, weekly, and monthly limits of $200, $500, and $1,000, or their naira equivalents. The apex bank said the measure is designed to improve transaction safety while enhancing the payment experience for tourists and Nigerians returning from the diaspora.
The CBN explained that the policy seeks to promote convenience, reliability, and confidence in the use of foreign-issued cards within Nigeria.
Under the new guidelines, banks and non-bank acquirers are required to ensure seamless access to cash withdrawals, payments, and transfers in local currency for holders of international cards, while maintaining high system uptime to prevent service disruptions.
The regulator also directed that all ATMs, point-of-sale terminals, and online payment platforms must be properly configured to accept foreign cards routed through Nigerian acquirers, in line with global card scheme standards and certification requirements.
All settlements arising from foreign card transactions are to be conducted strictly in naira, with financial institutions mandated to maintain adequate liquidity to meet settlement obligations promptly.
In addition, the CBN ordered the deployment of advanced transaction-monitoring systems to detect unusual or suspicious foreign card usage. Merchants accepting such payments are to undergo enhanced know-your-customer (KYC) and anti-money laundering (AML) checks, including verification of valid identification where required.
Any suspicious transaction must be reported immediately to the Nigerian Financial Intelligence Unit (NFIU), in accordance with existing regulations.
The apex bank further stressed pricing transparency, directing banks and acquirers to clearly disclose applicable exchange rates and charges to customers before transactions are completed.
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Exchange rates must be market-based, aligned with the official rate, and accepted by customers, with proof of consent properly documented.
To strengthen merchant capacity, acquirers were instructed to organise quarterly training sessions on dispute resolution and chargeback management. The CBN warned that unresolved consumer complaints escalated to the regulator would attract appropriate sanctions.
Tourists and returning Nigerians experiencing difficulties with foreign card usage were advised to lodge complaints with the CBN’s Consumer Protection and Financial Inclusion Department.
To improve user experience, especially for visitors, financial institutions were also directed to recalibrate fraud-monitoring systems to reduce unnecessary declines of legitimate transactions, while supporting contactless options for low-value payments.
The circular additionally introduced stricter chargeback and dispute management rules, requiring acquirers to maintain auditable processes and retain transaction records for at least 12 months, with such records to be produced within 24 hours when requested.
