The Central Bank of Nigeria (CBN) has directed all banks and non-bank financial institutions involved in payment services to ensure seamless and uninterrupted use of foreign-issued payment cards across the country, in a move aimed at improving access to funds and enhancing convenience, security, and user experience for Nigerians in the diaspora and foreign tourists visiting the country.
The directive was contained in a circular dated December 18 and signed by Rita Sike, director of the financial policy and regulation department.
According to the directive, all banks and non-bank acquirers are required to guarantee efficient local currency withdrawals, payments, and transfer services for holders of foreign-issued cards nationwide. The apex bank said all Automated Teller Machines (ATMs), Point-of-Sale (POS), and virtual payment terminals must be properly configured to accept international cards with Nigerian acquirers and comply fully with global card association standards. Institutions are also mandated to obtain and maintain all relevant certifications to ensure smooth processing of card transactions.
The CBN further instructed operators to maintain high system availability to prevent transaction failures and to implement multi-factor authentication for withdrawals and online transactions exceeding $200 per day, $500 per week, and $1,000 per month, or their naira equivalents. Banks must also ensure strict compliance with approved cash withdrawal limits for ATM transactions.
Under the new guidelines, users must be clearly informed of applicable exchange rates—based on prevailing official market rates—and all associated charges before transactions are completed. Institutions are required to maintain sufficient liquidity to settle transactions promptly and ensure that merchants receive settlements in local currency.
The directive also mandates enhanced transaction monitoring to detect unusual patterns in foreign card usage, stronger know-your-customer (KYC) and anti-money laundering (AML) controls, and stricter requirements for merchants to obtain signed receipts and valid identification where transactions appear suspicious. Suspicious transactions are to be reported to the Nigeria Financial Intelligence Unit (NFIU) in line with existing regulations.
In addition, banks and payment service providers are required to recalibrate fraud-monitoring systems to reduce false declines on legitimate foreign card transactions, ensure contactless payment options for low-value transactions, and resolve customer complaints within approved timelines. The CBN warned that unresolved complaints escalated to the apex bank would attract appropriate sanctions.
The CBN also directed acquirers to establish robust and auditable chargeback management processes in line with card scheme rules and regulatory guidelines. These include proper documentation of transactions, retention of records for a minimum of 12 months, and quarterly training for merchants and agents on dispute resolution and chargeback procedures.
Tourists and returning Nigerians from the diaspora who experience challenges using foreign-issued cards have been advised to report such incidents to the Director of the Consumer Protection and Financial Inclusion Department of the CBN via complaint4cbn@cbn.gov.ng. The apex bank said all complaints would be handled in line with existing consumer protection regulations.
The CBN added that it would closely monitor compliance with the directive and impose appropriate sanctions on any institution found to be in breach.
