The Central Bank of Nigeria has issued a new 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.

The apex bank said the move is part of broader efforts to improve access to funds, enhance user experience and strengthen confidence in Nigeria’s payment system.

The directive was contained in a circular dated December 18, 2025, and signed by the Director of the Financial Policy and Regulation Department, Rita I. Sike.

In the circular, the CBN 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.

The apex bank explained that the measure was introduced to address persistent complaints relating to declined transactions, unclear pricing, system downtime and other operational bottlenecks that have affected users of foreign cards in Nigeria.

Under the new directive, banks are required to ensure that all Automated Teller Machines, Point-of-Sale terminals and virtual payment platforms are properly configured to accept international cards supported by Nigerian acquirers.

The CBN also mandated financial institutions to fully comply with global card scheme standards and maintain all necessary certifications required for seamless transaction processing.

Banks and payment service providers were further instructed to maintain high system availability in order to minimise service disruptions that often frustrate foreign card users.

To strike a balance between convenience and security, the CBN directed banks to implement multi-factor authentication for withdrawals and online transactions above specified thresholds.

Financial institutions were also instructed to recalibrate their 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.

The circular placed strong emphasis on transparency, requiring banks and payment service providers to clearly communicate applicable exchange rates and charges to customers before completing transactions.

According to the CBN, exchange rates applied to such transactions must be market-driven and based on the prevailing official rate.

The apex bank stated that transactions should only proceed after users have explicitly accepted the stated terms, with evidence of such acceptance properly retained.

Banks were further directed to maintain sufficient liquidity to ensure prompt settlement of transactions and timely payment to merchants in local currency.

Payment service providers were also required to deploy transaction-monitoring systems capable of detecting unusual patterns in foreign card usage.

In addition, the CBN instructed institutions to strengthen know-your-customer and anti-money laundering controls for merchants handling foreign card payments.

Merchants were directed to ensure that receipts for card-present transactions are properly signed and that valid identification documents are requested where transactions appear suspicious.

All suspicious transactions are to be reported to the Nigerian Financial Intelligence Unit in accordance with existing regulations.

The CBN further directed acquirers to implement robust and auditable chargeback management processes.

Acquirers were also instructed to retain transaction records for a minimum period of 12 months.

In addition, banks and payment service providers are to provide quarterly training for merchants and agents on dispute resolution and chargeback handling.

The apex bank warned that consumer complaints arising from foreign card transactions must be resolved within approved timelines, noting that escalations to the CBN could attract sanctions.

Tourists and Nigerians returning from abroad who encounter difficulties using their foreign-issued cards were advised to report such incidents to the Consumer Protection and Financial Inclusion Department of the Central Bank of Nigeria.

The CBN reaffirmed its commitment to consumer protection and to strengthening confidence in Nigeria’s payment infrastructure.