The Central Bank of Nigeria (CBN) has directed all banks and other financial institutions to ensure “uninterrupted and efficient local currency withdrawal, payment and transfer services for users of foreign-issued payment cards nationwide.”
In a circular, dated December 18, 2025, issued by its Financial Policy and Regulation Department, the apex bank said the directive was in furtherance of ongoing efforts to facilitate access to funds and “enhance convenience, security, and user experience in foreign card usage for Diasporans and tourists visiting Nigeria.”
In line with the foregoing, the CBN in the circular, outlined several new measures aimed at ensuring the seamless use of foreign-is sued payment cards in the country.
Specifically, the apex bank directed banks and nonbank acquirers to ensure that all Automated Teller Machines (ATMs), Point of Sale ( PoS) and virtual (web-based) terminals are configured to accept international cards with Nigerian acquirers; are in full compliance with card association standards and possess the appropriate certifications to enable seamless transaction processing.
It also directed all banks and other financial institutions to implement multifactor authentication for all withdrawals and online transactions above $200 daily, $500 weekly, and $1,000 monthly, or their naira equivalents.
Furthermore, the CBN said financial institutions were required to clearly communicate applicable exchange rates, as well as other associated charges to customers, before transactions were concluded. According to the circular, the applicable exchange rate for a foreign card transaction must be market-driven and based on the prevailing official rate.
“Transactions are only to be completed after users have explicitly accepted the terms, with evidence of such acceptance retained,” the circular said. In addition, all merchant settlements arising from foreign card transactions must be made strictly in local currency (Naira), while institutions are required to maintain sufficient liquidity to meet settlement obligations.
To curb fraud risks, the CBN directed financial institutions to implement robust transaction monitoring systems capable of detecting unusual usage patterns involving foreign cards across all terminals. Merchants handling foreign card payments are also expected to be subject to strengthened know your-customer and anti-money laundering controls.
Where transactions appear suspicious, merchants must request valid identification documents and ensure that card-present transaction receipts are properly signed. Suspicious transactions are to be reported promptly to the Nigeria Financial Intelligence Unit, in line with existing regulations, the CBN stated.
The apex bank further directed institutions to recalibrate their fraud-monitoring systems to minimise false declines on legitimate foreign card transactions, a move aimed at improving user experience for visitors and returnees. For low-value transactions, card acceptance devices must be equipped with contactless payment options.
The circular also introduced stricter obligations for acquirers around dispute resolution and chargebacks. Acquirers are required to implement and maintain robust, auditable chargeback management processes aligned with applicable card scheme rules and CBN guidelines.
This includes timely case intake, evidence collation, refund execution, and post-incident analysis. Institutions must also retain transaction documentation, such as terminal approval slips, signed merchant receipts, and item or service descriptions, for at least 12 months, with records retrievable within 24 hours upon request.
In addition, acquirers are required to provide quarterly training to merchants and agent networks on dispute handling and chargeback processes. The CBN warned that consumer complaints arising from foreign card transactions must be resolved within approved timelines, noting that escalations to the Central Bank would attract appropriate sanctions.
