The Central Bank of Nigeria (CBN) has issued a fresh directive to all banks and non-bank financial institutions, requiring multi-factor authentication (MFA) for foreign-issued card transactions exceeding $200 daily, $500 weekly, or $1,000 monthly or their naira equivalents to bolster security and streamline usage for tourists and returning Nigerians. Contained in a December 18 circular titled "Facilitation of Seamless Use of Foreign Cards," signed by Financial Policy and Regulation Director Rita I. Sike, the guidelines demand uninterrupted local currency withdrawals, payments, and transfers at ATMs, POS terminals, and online platforms across the country. Institutions must configure systems for high availability, comply with global card standards via certified terminals, and settle all merchant payments strictly in naira while maintaining liquidity for prompt obligations.
To curb fraud, banks face mandates for robust monitoring of unusual patterns, enhanced KYC and anti-money laundering for foreign card merchants, signed receipts with ID verification on suspicious deals, and swift reporting to the Nigerian Financial Intelligence Unit. Customers must receive pre-transaction disclosures of exchange rates pegged to official market values and all fees, with contactless options for low-value payments and rapid complaint resolutions to avoid CBN sanctions. This Yuletide-timed push addresses past glitches hobbling diaspora and visitor access, recalibrating fraud systems to minimize false declines while ensuring 24/7 functionality.
The policy underscores CBN's drive for convenience amid Nigeria's cashless evolution, potentially easing forex pressures by routing settlements locally and inviting reports of non-compliance to its Consumer Protection Department. Financial experts view it as a balanced fraud shield without stifling tourism, aligning with President Tinubu's economic reforms. As implementation kicks in, banks scramble to upgrade, promising smoother holiday spending for foreign cardholders in Africa's biggest economy.