Manny Ita
The Central Bank of Nigeria has issued a comprehensive regulatory circular aimed at streamlining the use of international payment cards within the country to bolster tourism and diaspora engagement. Signed by Dr. Rita Sike, Director of the Financial Policy and Regulation Department, the document, titled “Facilitation of Seamless Use of Foreign Cards,” mandates that all Deposit Money Banks and non-bank acquirers ensure their Automated Teller Machines, Point-of-Sale terminals, and web-based platforms are fully configured to accept international cards. The apex bank emphasized that terminals must comply with global card scheme standards and maintain necessary certifications to eliminate technical declines, further instructing banks to “ensure system availability” to provide 24/7 access for local currency withdrawals and payments.
To address security concerns while facilitating ease of use, the regulator has introduced a tiered Multi-Factor Authentication (MFA) framework for foreign cardholders. Under the new guidelines, MFA is now mandatory for transactions exceeding “$200 per day, $500 per week, or $1,000 per month.” Parallel to these security measures, the CBN ordered a recalibration of fraud-detection systems to reduce “false declines” on legitimate transactions. Transparency in currency conversion remains a focal point of the directive, as the bank now requires financial institutions to clearly communicate the applicable exchange rate based on the prevailing official market rate “before the transaction is completed.”
The circular further stipulates that transactions can only proceed after the user provides “explicit consent” to the stated exchange rate and associated fees, with all merchant payments ultimately settled in Naira. To modernize the payment experience, the CBN has directed that all card acceptance devices must support contactless options for low-value transactions. In instances of “card-present” transactions, merchants are authorized to request valid identity documents and ensure receipts are signed if a transaction appears suspicious. To ensure strict adherence, the regulator has established a direct reporting line through “complaint4cbn@cbn.gov.ng,” warning that unresolved issues escalated to the apex bank will result in “sanctions against the bank.”
