The Central Bank of Nigeria (CBN) has issued a new directive to banks and financial institutions aimed at improving access to funds for tourists and Nigerians returning from abroad. The move seeks to make using foreign-issued payment cards in Nigeria easier, more reliable, and more secure, strengthening confidence in the country’s payment system.
According to a circular dated December 18, 2025, signed by Rita I. Sike, director of the Financial Policy and Regulation Department, all banks and non-bank acquirers are required to maintain uninterrupted services for foreign card users. This includes smooth withdrawals at ATMs, seamless payments at Point-of-Sale (PoS) terminals, and fully functional virtual payment platforms across Nigeria.
The directive emphasizes balancing convenience with security. Banks are instructed to implement multi-factor authentication for higher-value transactions and enhance fraud-monitoring systems to avoid unnecessary declines. The CBN stressed that legitimate users should not be denied access to their funds due to overly restrictive controls.
CBN also instructed banks to clearly communicate exchange rates and fees before transactions are completed, ensuring transparency. Transactions must follow market-driven rates, and users must explicitly accept charges. Banks and payment service providers are further required to maintain sufficient liquidity to settle transactions promptly in local currency.
The circular also outlines responsibilities for merchants, including verifying suspicious transactions and reporting them to the Nigerian Financial Intelligence Unit. Acquirers must maintain auditable chargeback processes, retain records for at least 12 months, and provide regular training for merchants and agents. The CBN warned that failure to comply could result in sanctions.
source: Business day