The Central Bank of Nigeria (CBN) has mandated banks and other financial institutions to implement multi-factor authentication (MFA) for foreign card transactions exceeding $200 per day, as part of measures to strengthen security and improve user experience.
The directive, contained in a circular dated December 18, 2025, and signed by the Director of Financial Policy and Regulation, Dr Rita I. Sike, applies to all withdrawals and online transactions above $200 daily, $500 weekly, and $1,000 monthly, or their naira equivalents.
According to the CBN, the policy aims to enhance the seamless use of foreign-issued cards by tourists and Nigerians returning from the diaspora, while reducing fraud risks. Banks and non-bank acquirers are required to ensure uninterrupted local currency withdrawals, payments, and transfers throughout the country.
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The apex bank also directed that all ATMs, point-of-sale terminals, and online payment platforms be properly configured to accept international cards routed through Nigerian acquirers, in compliance with global card scheme standards.
On pricing, the CBN emphasised transparency, requiring institutions to disclose exchange rates and charges upfront. Exchange rates must be market-driven and based on the prevailing official rate, with transactions completed only after customer consent.
Other measures include strengthened fraud monitoring, enhanced KYC and anti-money laundering controls for merchants, mandatory local currency settlement of transactions, and improved chargeback and dispute resolution processes. The CBN warned that non-compliance would attract sanctions.
