CBN Introduces New Security Rules for Foreign Card Payments

New safeguards target high-value withdrawals and online payments as regulator moves to curb fraud and improve card access for tourists and diaspora Nigerians

The Central Bank of Nigeria (CBN) has instructed banks and other financial institutions to introduce multi-factor authentication for foreign-issued card transactions exceeding specified limits, as part of fresh efforts to strengthen payment security and improve user experience across the country.

The directive, contained in a circular dated December 18, 2025, applies to foreign card withdrawals and online transactions above $200 per day, $500 per week, and $1,000 per month, or their naira equivalents. It was issued by the CBN’s Financial Policy and Regulation Department.

According to the apex bank, the measure is designed to reduce fraud risks while ensuring smoother access to payment services for visitors to Nigeria and citizens returning from the diaspora. Financial institutions were told to guarantee uninterrupted local-currency withdrawals, payments, and transfers for users of foreign cards nationwide.

Beyond authentication, the CBN ordered banks and non-bank acquirers to keep high system uptime and ensure that ATMs, point-of-sale terminals, and online payment platforms are fully configured to accept international cards routed through Nigerian systems. All terminals must also meet global card scheme standards and hold valid certifications.

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The regulator further directed that settlements from foreign card transactions be made strictly in naira and that institutions maintain enough liquidity to meet settlement obligations. Enhanced transaction monitoring systems must also be deployed to detect unusual activity and limit false declines on legitimate transactions.

Merchants handling foreign card payments are required to comply with stricter know-your-customer and anti-money laundering rules, while suspicious transactions must be reported to the Nigerian Financial Intelligence Unit. The CBN warned that unresolved consumer complaints could attract sanctions and urged affected users to report issues to its Consumer Protection Department.