Nigeria’s financial industry regulator, the Central Bank of Nigeria (CBN) has issued a fresh directive to banks and other financial institutions aimed at easing the use of foreign-issued payment cards by tourists and Nigerians returning from the diaspora, as part of broader efforts to improve access to funds, enhance user experience, and strengthen confidence in the country’s payment system.
In a circular signed by the Director, Financial Policy and Regulation Department, Rita Sike, and dated December 18, 2025, the apex bank directed all deposit money banks and non-bank acquirers to ensure uninterrupted and efficient naira withdrawal, payment, and transfer services for users of foreign-issued cards across the country.
Reaffirming its commitment to protecting consumers and improving confidence in Nigeria’s payment infrastructure, the CBN encouraged tourists and Nigerians coming into the country, who experience difficulties using their foreign-issued cards, to report such incidents to the Consumer Protection and Financial Inclusion Department of the Central Bank of Nigeria.
The Apex bank said the move is intended to address persistent complaints around declined transactions, unclear pricing, system downtime, and operational bottlenecks that have affected foreign card users in Nigeria.
With the circular, the CBN also directed that banks to ensure that all Automated Teller Machines (ATMs), Point-of-Sale (PoS) terminals, and virtual payment platforms are properly configured to accept international cards supported by Nigerian acquirers, fully comply with global card scheme standards, and maintain the necessary certifications to process transactions seamlessly. Institutions are also mandated to maintain high system availability to prevent service disruptions that often frustrate foreign card users.
While placing emphasis on transparency, requiring payment service providers to clearly communicate applicable exchange rates and charges to customers before completing transactions, the CBN said exchange rates must be market-driven and based on the prevailing official rate, and transactions should only proceed after users have explicitly accepted the stated terms, with evidence retained.
In a bid to further ensure security of transactions the CBN directed banks to implement multi-factor authentication for withdrawals and online transactions above specified thresholds, while also recalibrating fraud-monitoring systems to reduce false declines on legitimate foreign card transactions. The apex bank emphasised that genuine users should not be unfairly denied access to their funds due to overly restrictive controls.
In addition, banks are required to maintain sufficient liquidity to settle transactions promptly and ensure that merchants are paid in local currency. Payment service providers are also expected to deploy transaction-monitoring systems capable of detecting unusual patterns in foreign card usage, while strengthening know-your-customer and anti-money laundering controls for merchants handling such payments.
Merchants, on their part, are to ensure that card-present transaction receipts are properly signed and that valid identification documents are requested where transactions appear suspicious. All suspicious transactions must be reported to the Nigerian Financial Intelligence Unit in line with existing regulations.
The CBN further directed acquirers to implement 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. Consumer complaints arising from foreign card transactions must also be resolved within approved timelines, with the apex bank warning that escalations to the CBN could attract sanctions.
