CBN directs Banks to implement multi-factor authentication for foreign card transactions

The Central Bank of Nigeria (CBN) has directed banks and non-bank acquirers to implement multi-factor authentication for foreign card transactions exceeding $200 per day, as part of measures to improve security, access, and user experience for both Nigerians and tourists.

In a circular dated December 18 and signed by Rita Sike, director of the financial policy and regulation department, the CBN instructed banks to apply the same authentication for transactions above $500 per week and $1,000 per month. Banks were also directed to configure ATMs, POS terminals, and virtual payment devices to accept international cards in compliance with card association standards.

The apex bank emphasized that all transactions must be settled in naira, with applicable exchange rates and charges clearly communicated to users. Banks and acquirers are expected to monitor transactions for unusual patterns, strengthen anti-money laundering and know-your-customer (KYC) controls, and maintain robust chargeback and dispute management processes.

The CBN also requires banks to train merchants quarterly on dispute handling and chargebacks, ensure contactless payment capability for low-value transactions, and report suspicious activity to the Nigeria Financial Intelligence Unit (NFIU). Failure to comply with these directives may attract sanctions.

Tourists and Nigerians experiencing issues with foreign-issued cards have been advised to report complaints to the CBN’s consumer protection department via [email protected].