The Central Bank of Nigeria (CBN) has rolled out comprehensive guidelines aimed at improving the reliability, security, and overall user experience for holders of foreign-issued payment cards in Nigeria. This initiative particularly targets tourists and Nigerians returning from the diaspora, addressing longstanding complaints about transaction declines, system downtimes, unclear charges, and operational hurdles.
In a circular dated December 18, 2025, titled “Facilitation of Seamless Use of Foreign Cards,” issued by the Financial Policy and Regulation Department and signed by Director Dr. Rita I. Sike, the CBN directed all deposit money banks and non-bank financial institutions to implement a range of measures to ensure uninterrupted access to local currency services.
A key highlight of the directive is the mandatory introduction of multi-factor authentication (MFA) for withdrawals and online transactions involving foreign-issued cards that exceed specified thresholds: $200 per day, $500 per week, and $1,000 per month (or their naira equivalents). This enhanced security layer is intended to protect against fraud while maintaining convenience for legitimate users.
The apex bank emphasized that the policy forms part of ongoing efforts to boost confidence in Nigeria's payment ecosystem, promote tourism, and facilitate easier financial access for diaspora Nigerians visiting home. By strengthening safeguards without overly restricting access, the CBN seeks to make Nigeria a more attractive destination for international visitors reliant on foreign cards.
Banks and non-bank acquirers are now required to guarantee seamless naira withdrawals, payments, and transfers nationwide for international cardholders. This includes configuring all Automated Teller Machines (ATMs), Point-of-Sale (POS) terminals, and virtual/web-based payment platforms to accept foreign cards routed through Nigerian acquirers. These systems must fully comply with global card scheme standards, such as those set by Visa, Mastercard, and others, and hold the necessary certifications or recertifications for efficient processing.
To prevent service interruptions—a common frustration for foreign card users—institutions must maintain high system uptime. The CBN also instructed banks to recalibrate their fraud-monitoring systems to minimize unnecessary declines of genuine transactions, ensuring that tourists and returnees are not unfairly blocked from accessing their funds.
For low-value payments, card acceptance devices are mandated to support contactless options, further enhancing speed and convenience at merchant locations.
On the anti-money laundering (AML) and know-your-customer (KYC) front, the directive requires the deployment of advanced transaction-monitoring systems to detect unusual or suspicious activity involving foreign cards. Merchants accepting such payments must undergo enhanced checks, including verification of valid identification where applicable. Any flagged suspicious transactions must be promptly reported to the Nigerian Financial Intelligence Unit (NFIU) in accordance with existing regulations.
Transparency in pricing is another cornerstone of the new rules. Banks and acquirers must clearly disclose applicable exchange rates and all associated charges to customers before finalizing transactions. Exchange rates are to be market-driven, aligned with the prevailing official rate, and customers must provide explicit consent, with records properly documented.
Settlements for foreign card transactions must be conducted exclusively in naira, with institutions required to hold sufficient liquidity for prompt fulfillment of obligations.
The circular also imposes stricter requirements on chargeback and dispute management. Acquirers are directed to establish robust, auditable processes in line with card scheme rules and CBN guidelines. This includes timely intake of cases, evidence collection, refund execution, and post-incident analysis. Transaction records must be retained for at least 12 months and produced within 24 hours upon request.
To build merchant capacity, acquirers are instructed to organize quarterly training sessions for merchants and agents on dispute resolution and chargeback handling.
The CBN warned that failure to resolve consumer complaints within stipulated timelines could lead to sanctions, particularly if issues are escalated to the regulator. Tourists and returning Nigerians facing challenges with foreign card usage are encouraged to report incidents directly to the CBN’s Consumer Protection and Financial Inclusion Department via designated channels.
Overall, these measures represent a balanced approach: bolstering security through MFA and advanced monitoring while prioritizing user-friendly enhancements like contactless payments, reduced false declines, and transparent pricing. Industry observers note that successful implementation could significantly boost Nigeria's tourism sector and diaspora remittances by removing payment barriers that have deterred visitors in the past.
The directive comes at a time when Nigeria is actively modernizing its financial infrastructure to align with global standards, fostering greater inclusion and economic activity.
