In a major move to improve the usability of international payment cards in Nigeria, the Central Bank of Nigeria (CBN), has issued a fresh directive to all deposit money banks and non-bank financial institutions to enhance the configuration and acceptance of foreign-issued payment cards across ATMs, Point-of-Sale (PoS) terminals, and digital platforms nationwide.
The announcement by the apex bank aims to bolster access to funds, enhance security, improve user experience, and strengthen confidence in Nigeria’s payment ecosystem for tourists and diaspora Nigerians.
Details of the New CBN Directive
The directive is contained in a circular dated December 18, signed by Rita Sike, Director of the Financial Policy and Regulation Department at the CBN. It introduces stricter operational and security requirements for transactions conducted with foreign-issued cards within Nigeria.
Mandatory Multi-Factor Authentication (MFA)
A key highlight of the directive is the mandatory introduction of multi-factor authentication (MFA), for foreign card transactions that exceed specified thresholds. According to the CBN:
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MFA will apply to withdrawals and online transactions above:
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$200 per day
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$500 per week
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$1,000 per month
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The limits also apply to equivalent values in other foreign currencies.
This measure is designed to reduce fraud risks, enhance transaction integrity, and ensure that higher-value transactions receive additional layers of verification without disrupting legitimate use.
Configuration of PoS and ATM Infrastructure
The CBN also directed banks and non-bank acquirers to properly configure all PoS terminals and ATMs to support transactions carried out with foreign-issued cards. Operators are expected to ensure that their systems are:
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Fully compliant with international card scheme standards
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Capable of processing foreign card transactions seamlessly
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Optimized for local currency (naira), withdrawals and payments
This step is expected to address recurring issues such as declined transactions, system incompatibility, and failed withdrawals experienced by foreign cardholders.
Strict Compliance With Withdrawal Limits
In addition to authentication requirements, the circular stressed that:
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Banks and non-bank acquirers must strictly comply with approved cash withdrawal limits for ATM transactions involving foreign-issued cards.
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Any breach of the prescribed limits or failure to implement the new requirements will attract regulatory scrutiny, as adherence is mandatory, not optional.
Objectives of the Directive
According to the CBN, the new measures are designed to:
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Enhance the efficiency of local currency withdrawals, payments, and transfer services for holders of foreign-issued cards.
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Improve access to funds for tourists and Nigerians in the diaspora visiting the country.
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Strengthen transaction security by balancing convenience with robust fraud-prevention mechanisms.
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Boost confidence in Nigeria’s digital payment ecosystem and financial infrastructure.
Implications for Stakeholders
For Banks and Non-Bank Acquirers
Financial institutions must upgrade systems, deploy MFA frameworks, and ensure full compliance with withdrawal limits and infrastructure standards. Failure to comply may result in sanctions from the apex bank.
For Merchants
Merchants using PoS terminals can expect more reliable foreign card payments but must also adhere to strengthened transaction and compliance requirements.
For Foreign Cardholders
Tourists, visitors, and returning Nigerians will benefit from:
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Easier access to funds
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More secure transactions
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Reduced transaction failures
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Greater transparency and reliability when using foreign cards in Nigeria
Conclusion
The CBN’s fresh directive marks a significant step toward modernising Nigeria’s card payment framework. By mandating multi-factor authentication, enforcing withdrawal limits, and ensuring proper configuration of PoS and ATM systems, the apex bank aims to improve user experience while tightening security.
The policy is expected to support tourism, diaspora engagement, and overall economic activity, while reinforcing trust in Nigeria’s financial system.
