The Central Bank of Nigeria (CBN) has directed all banks and other financial institutions to ensure the seamless use of foreign-issued payment cards across the country, in a move aimed at improving access to funds and enhancing convenience for tourists and Nigerians returning from the diaspora.
The directive, contained in a circular dated December 18, 2025, ‘Ref: FPR/DIR/PUB/CIR/01/012’, mandates banks and non-bank acquirers to guarantee uninterrupted local currency withdrawals, payments, and transfers for holders of foreign cards nationwide.
According to the CBN, the measure is part of ongoing efforts to improve user experience, strengthen security, and promote confidence in Nigeria’s payment ecosystem.
Under the new guidelines, financial institutions are required to ensure that all Automated Teller Machines (ATMs), Point of Sale (POS), and virtual payment terminals are configured to accept international cards supported by Nigerian acquirers, fully comply with card association standards, and possess the necessary certifications to process transactions seamlessly.
The apex bank also directed institutions to maintain high system availability, implement multi-factor authentication for withdrawals and online transactions exceeding specified thresholds, and comply strictly with approved cash withdrawal limits.
To protect consumers, banks must clearly disclose applicable exchange rates—based on prevailing official market rates—and all associated charges, with transactions completed only after customers explicitly accept the terms. Institutions are also required to maintain adequate liquidity to settle transactions and ensure that merchants receive payments in local currency (naira).
The circular, which was signed by the Director of the Financial Policy and Regulation Department, Dr Rita Sike, stated that in addition, the CBN instructed acquirers to strengthen transaction monitoring systems to detect suspicious usage patterns, reinforce know-your-customer (KYC) and anti-money laundering (AML) controls, and recalibrate fraud-detection systems to minimise false declines on legitimate foreign card transactions.
Merchants are to ensure proper documentation of card-present transactions, including signed receipts and valid identification for suspicious transactions, while all suspicious activities must be reported to the Nigeria Financial Intelligence Unit (NFIU) in line with existing regulations.
The circular further mandates acquirers to establish robust and auditable chargeback management processes, retain transaction records for a minimum of 12 months and provide quarterly training for merchants and agents on dispute resolution and chargeback handling.
Tourists and Nigerian returnees experiencing difficulties with foreign-issued cards have been advised to report complaints to the Director of the Consumer Protection and Financial Inclusion Department of the CBN.
