CBN issues new rules to improve foreign card use in Nigeria

The Central Bank of Nigeria (CBN) has introduced fresh guidelines aimed at making it easier for tourists and Nigerians returning from the diaspora to use foreign-issued payment cards in the country.

In a circular dated December 18, 2025, and signed by Rita I. Sike, Director of the Financial Policy and Regulation Department, the apex bank directed deposit money banks and non-bank acquirers to ensure seamless naira withdrawals, payments, and transfers for users of international cards nationwide.

The CBN said the directive is part of efforts to tackle recurring complaints such as declined transactions, unclear charges, system downtime, and operational challenges that foreign card users often face in Nigeria.

Under the new rules, banks are required to ensure that all ATMs, Point-of-Sale (PoS) terminals, and digital payment platforms are properly configured to accept international cards supported by Nigerian acquirers. Financial institutions must also comply fully with global card scheme standards, maintain required certifications, and ensure high system uptime to reduce service disruptions.

To enhance security without inconveniencing users, the CBN directed banks to apply multi-factor authentication for high-value withdrawals and online transactions, while adjusting fraud-monitoring systems to minimise false declines on legitimate foreign card transactions.

The circular also stresses transparency, mandating banks and payment service providers to clearly disclose applicable exchange rates and charges before transactions are completed. Exchange rates must be market-driven and aligned with the prevailing official rate, while customers must explicitly accept the terms before processing, with records kept as evidence.

In addition, banks are expected to maintain adequate liquidity to settle transactions promptly and ensure merchants receive payments in naira. Payment service providers must strengthen transaction-monitoring systems, as well as know-your-customer and anti-money laundering controls for merchants handling foreign card payments.

Merchants are required to ensure proper documentation for card-present transactions, including signed receipts and valid identification where transactions appear suspicious. Any suspicious activity must be reported to the Nigerian Financial Intelligence Unit in line with existing regulations.

The CBN further instructed acquirers to establish robust and auditable chargeback management processes, retain transaction records for at least 12 months, and conduct quarterly training for merchants and agents on dispute resolution and chargeback handling. Consumer complaints must be resolved within approved timelines, with the bank warning that unresolved cases escalated to the CBN could attract sanctions.

Tourists and returning Nigerians who encounter challenges using foreign-issued cards have been advised to report such issues to the Consumer Protection and Financial Inclusion Department of the CBN, as the apex bank reaffirmed its commitment to safeguarding consumers and boosting confidence in Nigeria’s payment system.