The Central Bank of Nigeria (CBN) has instructed banks and non-bank acquirers to configure all Automated Teller Machines (ATMs), Point-of-Sale (POS) devices and virtual payment terminals to accept foreign-issued payment cards across the country.
The directive, aimed at ensuring smooth and uninterrupted transactions for users of international cards, requires all acquiring institutions to comply with global card association standards and obtain the necessary certifications to support seamless transaction processing.
The directive was contained in a circular signed by the Director of the Financial Policy and Regulation Department, Dr. Rita Sike.
As part of the new measures, the apex bank mandated the implementation of multi-factor authentication for foreign card transactions exceeding $200 per day. The same security requirement will also apply to transactions above $500 per week and $1,000 per month, or their naira equivalents.
According to the circular, banks and non-bank acquirers must ensure that ATM cash withdrawals comply with approved withdrawal limits and that users are clearly informed of applicable exchange rates and associated charges, which must be market-driven and based on the prevailing official rate. Transactions are to be completed only after customers explicitly accept the stated terms.
The CBN further directed institutions to maintain sufficient liquidity to settle transactions promptly and ensure that merchants are paid in local currency. Acquirers are also required to implement robust transaction monitoring systems to detect suspicious patterns in the use of foreign cards and strengthen know-your-customer (KYC) and anti-money laundering (AML) controls for merchants handling such payments.
Merchants are expected to ensure that all card-present transaction receipts are properly signed and that valid identification is requested where transactions appear suspicious.
In addition, the circular stipulated that card acceptance devices must support contactless payment options for low-value transactions and that consumer complaints must be resolved within approved timelines.
The apex bank also mandated acquirers to establish auditable chargeback management processes in line with card-scheme rules and CBN guidelines. This includes timely case handling, evidence collection, refund execution and post-incident analysis. Transaction records must be retained for at least 12 months and made available within 24 hours when requested.
Furthermore, banks and non-bank acquirers are required to provide quarterly training for merchants and agent networks on dispute resolution and chargeback procedures, report suspicious transactions to the Nigeria Financial Intelligence Unit (NFIU), and recalibrate fraud-monitoring systems to minimise false declines on legitimate transactions.
The CBN advised tourists and Nigerian returnees experiencing difficulties using foreign-issued cards to report such issues to its Consumer Protection Department via complaint4cbn@cbn.gov.ng.
