The Central Bank of Nigeria (CBN) has directed banks and non-bank acquiring institutions to implement multi-factor authentication (MFA) for transactions carried out with foreign-issued cards exceeding $200 per day, as part of measures to strengthen payment security in the country.
The directive was contained in a circular dated December 18 and signed by the Director of the Financial Policy and Regulation Department at the apex bank, Mrs Rita Sike. The circular was addressed to all deposit money banks, payment service banks and non-bank acquirers operating in Nigeria.
According to the new guidelines, MFA will be mandatory for withdrawals and online transactions involving foreign-issued cards that exceed $200 daily, $500 weekly and $1,000 monthly, or their equivalents in other foreign currencies. The CBN explained that the thresholds are intended to reduce fraud risks while ensuring continued access to funds for legitimate cardholders.
In addition to the authentication requirement, the apex bank instructed operators to ensure that point-of-sale (POS) terminals and automated teller machines (ATMs) are properly configured to support transactions conducted with foreign-issued cards. This, the CBN said, is critical to improving the efficiency and reliability of card-based transactions in the country.
The bank noted that the new measures are designed to enhance local currency withdrawals, payments and transfer services for holders of foreign-issued cards in Nigeria. It added that the policy would benefit tourists, business travellers and Nigerians in the diaspora who frequently rely on foreign cards while visiting the country.
According to the CBN, strengthening authentication requirements will help curb unauthorised transactions and reduce exposure to card fraud, which has remained a concern within the financial system. The introduction of MFA is also expected to align Nigeria’s payment ecosystem with global best practices in electronic payment security.
“The directive is aimed at improving access to funds for users of foreign-issued cards, while at the same time enhancing transaction security,” the circular stated.
The apex bank further reminded financial institutions that they must strictly comply with existing cash withdrawal limits for ATM transactions involving foreign-issued cards. It warned that adherence to the new MFA requirements is mandatory and non-negotiable.
Banks and non-bank acquirers were urged to take immediate steps to implement the directive and ensure full compliance within their operations. The CBN stressed that failure to comply could attract regulatory sanctions.
The latest directive forms part of the CBN’s broader efforts to strengthen the safety, efficiency and integrity of Nigeria’s payment system, especially as digital transactions and cross-border card usage continue to increase.
