CBN mandates multi-factor authentication for foreign card transactions above $200
Agency Report
The Central Bank of Nigeria (CBN) has directed all banks and other financial institutions to implement multi-factor authentication (MFA) for foreign-issued card transactions exceeding $200 per day, in a move aimed at strengthening payment security while improving the ease of card usage for tourists and Nigerians returning from the diaspora.
The directive was contained in a circular dated December 18, 2025, issued by the CBN’s Financial Policy and Regulation Department and signed by its Director, Dr. Rita I. Sike.
The circular, addressed to all banks and non-bank financial institutions, is titled “Facilitation of Seamless Use of Foreign Cards.”
According to the apex bank, the MFA requirement applies to all withdrawals and online transactions above $200 daily, $500 weekly and $1,000 monthly, or their naira equivalents.
The CBN said the measure forms part of broader efforts to enhance convenience, security and overall user experience in the use of foreign-issued payment cards across Nigeria.
“The requirement for multi-factor authentication is intended to strengthen transaction security without compromising ease of access for legitimate users,” the CBN stated, adding that institutions must ensure uninterrupted and efficient local currency withdrawals, payments and transfers nationwide for foreign card users.
The CBN also mandated full compliance with global card association standards, including the necessary certifications or recertifications, to support smooth transaction processing.
On pricing, the apex bank stressed transparency, requiring financial institutions to clearly communicate applicable exchange rates to customers before transactions are completed.
Exchange rates for foreign card transactions must be market-driven and aligned with the prevailing official rate, with all associated charges disclosed upfront.
Transactions are to be completed only after users have explicitly accepted the terms, and institutions are required to retain evidence of such acceptance.
In addition, all merchant settlements arising from foreign card transactions must be made strictly in naira, while banks and acquirers are expected to maintain sufficient liquidity to meet settlement obligations promptly.
Suspicious transactions are to be reported promptly to the Nigeria Financial Intelligence Unit (NFIU), in line with existing regulations.
For low-value transactions, the regulator said card acceptance devices must support contactless payment options to enhance speed and convenience.
The circular also introduced stricter obligations for acquirers on dispute resolution and chargeback management.
Acquirers are required to implement robust, auditable chargeback processes in line with card scheme rules and CBN guidelines, covering timely case intake, evidence collation, refunds and post-incident analysis.
