The Central Bank of Nigeria (CBN) has issued a new directive requiring all banks and financial institutions in Nigeria to ensure the smooth and seamless use of foreign‑issued payment cards across the country. The move is aimed at improving access to funds and enhancing convenience for tourists, business travellers, and Nigerians returning from the diaspora.
Under a circular released by the CBN’s Financial Policy and Regulation Department, financial institutions must configure their systems so that foreign credit and debit cards can be used without interruption at all Automated Teller Machines (ATMs), Point‑of‑Sale (POS) terminals, and online payment platforms nationwide.
The policy comes as part of broader efforts by the apex bank to strengthen Nigeria’s payment infrastructure, boost investor confidence, and support the country’s growing tourism and diaspora remittance sectors. Officials say the directive will reduce transaction failures and eliminate barriers that have previously frustrated users of foreign cards in Nigeria.
To ensure both convenience and security, the CBN has also instructed banks and non‑bank payment providers to implement multi‑factor authentication (MFA) for certain foreign card transactions. This means that transactions above specified thresholds, such as $200 per day, $500 per week, and $1,000 per month (or their naira equivalents) will require additional verification steps, such as one‑time passwords or biometric checks, to reduce fraud risk.
In its directive, the regulator emphasized that all terminals must comply with global card‑association standards and maintain the necessary certifications to process international transactions reliably. Banks are required to maintain high system availability to avoid service disruptions that could impede withdrawals, payments, or transfers by foreign cardholders.
The CBN’s circular also sets out obligations for clear exchange rate disclosure: card users must be informed of applicable rates based on prevailing official market rates before a transaction is completed. Institutions must also ensure they have sufficient naira liquidity to settle foreign card transactions promptly, and merchants must receive settlement in naira.
Officials said the policy will not only benefit visitors but also Nigerians in the diaspora who rely on foreign‑issued cards when travelling home, making it easier to access funds and pay for goods and services without resorting to unofficial channels or third‑party intermediaries.
For MSMEs, particularly retail businesses, hospitality operators, e‑commerce platforms, and tourism service providers, the directive could expand payment options for customers, attract more international and diaspora spenders, and help capture more revenue in local currency. By improving reliability and user experience around foreign card payments, merchants may benefit from increased cross‑border transactions and consumer confidence.
The CBN has warned that it will monitor compliance and take appropriate action against institutions that fail to meet the new standards.
