The Central Bank of Nigeria (CBN) has directed banks and non-bank acquirers to implement multi-factor authentication for foreign card transactions exceeding $200 per day, $500 per week, and $1,000 per month, in a bid to enhance security and facilitate seamless access to funds across the country.

In a circular dated December 18 and signed by Rita Sike, Director of the Financial Policy and Regulation Department, the apex bank instructed financial institutions to also configure automated teller machines (ATMs), point-of-sale (POS) terminals, and virtual terminals to accept international cards in compliance with card association standards.

The CBN said the directive is aimed at ensuring uninterrupted and efficient local currency withdrawals, payments, and transfer services for users of foreign-issued payment cards in Nigeria.

It also noted that the measures are intended to improve access to funds, strengthen security, and enhance the experience of tourists and Nigerians in the diaspora visiting the country.

The circular further outlined operational requirements for banks and acquirers, including:
Ensuring multi-factor authentication for all withdrawals and online transactions above the prescribed thresholds.

Compliance with approved cash withdrawal limits at ATMs.
Clear communication of applicable exchange rates, based on prevailing official rates, and associated charges to users before transactions are completed.

Maintenance of sufficient liquidity to settle transactions.
Settlement of merchant transactions in local currency (Naira).

Implementation of transaction monitoring systems to detect unusual patterns in foreign card usage.

Strengthened know-your-customer (KYC) and anti-money laundering (AML) measures for merchants handling foreign card payments.
                                                Verification and retention of transaction documentation for a minimum of 12 months, with records retrievable within 24 hours for dispute resolution and chargebacks.

Provision of quarterly training to merchants and agent networks on dispute handling and chargeback processes.

Additionally, the CBN directed banks and non-bank acquirers to report suspicious transactions to the Nigeria Financial Intelligence Unit (NFIU) and recalibrate fraud-monitoring systems to reduce false declines on legitimate transactions.

The regulator also emphasized the inclusion of contactless payment options for low-value transactions and urged institutions to resolve consumer complaints within approved timelines, warning that unresolved cases escalated to the CBN would attract sanctions.

Tourists and Nigerian returnees experiencing difficulties using foreign-issued cards were encouraged to report incidents to the CBN’s Consumer Protection Department via
complaint4cbn@cbn.gov.ng.
                                                             The CBN concluded that it would monitor compliance with the directive and impose appropriate sanctions on any institutions found to be in breach.