The Central Bank of Nigeria has ordered banks and fintechs to ensure seamless use of foreign-issued cards on ATMs, POS and online platforms nationwide, warning of sanctions for non-compliance
CBN Orders Banks to Accept Foreign Cards Nationwide, Warns of Sanctions for Failures
The Central Bank of Nigeria (CBN) has directed banks and other financial institutions to ensure the uninterrupted use of foreign-issued payment cards across ATMs, point-of-sale (POS) terminals and online platforms nationwide.
The directive is contained in a circular issued on Thursday by the CBN’s Financial Policy and Regulation Department, and signed by its Director, Rita Sike. The move is aimed at improving access to funds, transaction security and overall user experience for tourists and Nigerians returning from the diaspora.
“In furtherance of ongoing efforts to facilitate access to funds and convenience, security, and user experience in foreign card usage for diasporans and tourists visiting Nigeria, all banks and non-bank acquirers of value are hereby directed to ensure uninterrupted and efficient local currency withdrawal, payment, and transfer services for users of foreign-issued payment cards nationwide,” the CBN said.
ATMs, POS Must Accept International Cards
Under the circular, banks and fintech firms were instructed to ensure that all ATMs, POS devices and virtual terminals are properly configured to accept international cards, comply with global card-scheme standards, and possess the required certifications.
Financial institutions were also mandated to maintain high system uptime to prevent failed transactions and service disruptions.
Transaction Limits, Security Measures
The apex bank further directed institutions to implement multi-factor authentication for withdrawals and online transactions exceeding:
- $200 per day
- $500 per week
- $1,000 per month (or their naira equivalents)
These measures must be applied in line with approved ATM cash withdrawal limits.
To promote transparency, banks and acquirers were ordered to clearly disclose exchange rates and charges to customers before completing transactions.
“They are expected to clearly communicate the applicable exchange rate, which shall be market-driven and based on the prevailing official rate, as well as other associated charges to users,” the CBN stated, adding that transactions should only proceed after customers have accepted the terms.
Institutions must also ensure adequate liquidity to settle transactions promptly and guarantee that merchants are paid in local currency.
Stronger Anti-Fraud Controls
To curb fraud and abuse, the CBN directed banks and acquirers to strengthen Know-Your-Customer (KYC) and anti-money laundering (AML) controls, monitor unusual transaction patterns, and recalibrate fraud-monitoring systems to reduce false declines on legitimate foreign card transactions.
Card-acceptance devices must support contactless payments for low-value transactions, while banks are required to obtain signed receipts for card-present transactions and request valid identification where transactions appear suspicious.
Suspicious activities must be reported to the Nigerian Financial Intelligence Unit (NFIU) in line with existing regulations.
Compliance, Sanctions and Consumer Protection
For acquirers, the CBN mandated robust chargeback management systems, retention of transaction records for at least 12 months, and quarterly training for merchants and agent networks on dispute resolution.
The regulator warned that unresolved customer complaints escalated to the CBN would attract regulatory sanctions.
“The CBN will monitor compliance with this directive and will impose appropriate sanctions on any institution found in breach, in accordance with extant regulations,” the circular stated.
Tourists and Nigerians returning from the diaspora who encounter difficulties using foreign cards were advised to report such incidents to the CBN’s Consumer Protection and Financial Inclusion Department.
Yuletide Timing
The directive comes amid the yuletide season, a period marked by increased visits from Nigerians in the diaspora and foreign tourists, leading to higher dependence on foreign-issued cards for cash withdrawals and payments.
In previous festive seasons, failed transactions and unclear charges have been a major source of customer complaints, a situation the CBN says it is determined to eliminate. Read More
