Over the medium to long term, financial analysts predict that the Central Bank of Nigeria’s (CBN) move to increase and secure foreign card transactions will be crucial for strengthening the naira, deepening FX market liquidity, and increasing foreign exchange reserve accretion. They contend that the action represents a gradual return to normalcy following years of foreign exchange scarcity and transaction limitations, as well as increased trust in Nigeria’s external industry.that banks and non-bank acquirers were recently instructed by the CBN to use multi-factor verification for transactions involving foreign cards. The action is intended to bolster security and enhance the country’s user experience for foreign cards. For users of foreign-issued payment cards throughout Nigeria, especially tourists and Nigerians living abroad, the measures are also intended to guarantee uninterrupted and effective local currency withdrawals, payments, and transfer services.The policy, according to analysts, speaks directly to Nigeria’s larger macroeconomic strategy, which is centered on luring foreign capital, promoting inflows through official channels, and boosting trust in the nation’s financial system. In the first ten months of 2025, foreign capital inflows were US$20.98 billion, a 70% increase over the overall inflows for 2024 and a 428% rise over the US$3.9 billion reported in 2023, indicating a considerable improvement in investor confidence.It all began when local banks resumed using domestic cards overseas, so easing limits on card transactions. For example, United Bank for Africa (UBA) Plc, FirstBank, GTBank, and Wema Bank Plc, three Tier-1 banks and a mid-tier bank, stated that their naira debit cards will once again be used for foreign transactions. The resumption is consistent with the institutions’ ongoing dedication to provide customers smooth and improved banking experiences.Customers are commemorating this achievement, but the CBN has also instructed banks and non-bank acquirers to utilize multi-factor authentication so that foreign cards can be used at home. According to the regulator, the new framework is intended to improve international cardholders’ overall user experience, increase transaction security, and facilitate better access to cash. Rita Sike, Director of Financial Policy and Regulation at CBN, further directed financial institutions to make sure that point-of-sale (POS) terminals are set up correctly for the use of foreign-issued cards and to apply the same authentication requirements for $200 transactions to transactions exceeding $500 per week and $1,000 per month.In order to facilitate smooth transaction processing, banks and non-bank acquirers were also instructed to set up all automated teller machines (ATMs), point-of-sale (POS), and virtual terminals to accept foreign cards through Nigerian acquirers, fully adhere to card association standards, and acquire the required certifications. In order to ensure continuous transaction processing, institutions were also told to maintain high system availability. “In this regard, banks and non-bank acquirers shall: implement multi-factor authentication for all withdrawals and online transactions exceeding $200 per day, $500 per week, and $1,000 per month (or its equivalent),” the circular states. Make sure that the authorized cash withdrawal limitations are followed while making cash withdrawals from ATMs.Users should be made fully aware of the applicable exchange rate, which will be determined by the current official rate and driven by the market, along with any additional fees. Only after the user has accepted the terms (with proof acquired) should transactions be finished. Keep enough cash on hand to complete deals. Complete transactions for the retailer using naira, the local currency. Use transaction monitoring to find odd trends in foreign card usage at all terminals. Boost anti-money laundering and know-your-customer policies for businesses that accept international card payments.mandate that their retailers make sure all of their copies of card-present transaction receipts are correctly signed and ask for legitimate identification documents in cases when a transaction seems suspect.
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