The Central Bank of Nigeria (CBN) has introduced fresh measures aimed at strengthening the reliability and security of foreign-issued payment card transactions in the country, directing banks and other financial institutions to adopt multi-factor authentication for such transactions.
The new directive was contained in a circular dated December 18, 2025, issued by the CBN’s Financial Policy and Regulation Department and signed by its Director, Dr Rita I. Sike.
According to the apex bank, the move is part of broader efforts to enhance consumer protection, reduce fraud risks, and improve confidence in the use of international payment cards within Nigeria’s financial system.
The circular instructed deposit money banks, payment service providers, and other regulated financial institutions to ensure that transactions involving foreign-issued cards are subjected to additional verification layers, including but not limited to one-time passwords (OTP), biometric authentication, or other approved security controls.
The CBN noted that the adoption of multi-factor authentication would help align Nigeria’s payment ecosystem with global best practices, while also addressing rising concerns over card-related fraud and unauthorized transactions.
Financial institutions were advised to commence immediate compliance with the directive and ensure that their payment infrastructure and internal controls are updated accordingly. The apex bank warned that failure to comply with the new requirements could attract regulatory sanctions.
The latest directive underscores the CBN’s ongoing commitment to strengthening the integrity of Nigeria’s payment system and safeguarding customers in an increasingly digital financial environment.
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