LunagisthubCentral Bank of Nigeria Mandates Multi-Factor Authentication for Foreign Card Transactions
The Central Bank of Nigeria (CBN) has directed all banks and financial institutions to implement multi-factor authentication (MFA) for foreign card transactions exceeding $200 daily, $500 weekly, and $1,000 monthly, or their naira equivalents. This directive aims to strengthen transaction security, improve user experience, and enhance convenience for tourists and Nigerians returning from the diaspora .
Banks and non-bank financial institutions are required to:
– Implement MFA for foreign card transactions above the specified thresholds
– Configure ATMs, point-of-sale terminals, and virtual payment platforms to accept international cards
– Maintain high system availability to prevent transaction disruptions
– Provide clear disclosure of exchange rates and associated fees to customers
– Implement robust transaction monitoring systems to detect unusual patterns .
The CBN’s directive is expected to:
– Enhance security and reduce fraud risks
– Improve user experience for tourists and Nigerians returning from the diaspora
– Increase convenience and reliability in foreign card usage across Nigeria
– Promote transparency and accountability in foreign card transactions .
The CBN will closely monitor compliance with the directive and impose sanctions on institutions that fail to adhere to the requirements. Tourists and Nigerians returning from the diaspora who experience difficulties using foreign-issued cards can report incidents to the CBN’s Consumer Protection and Financial Inclusion Department .
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