CBN Issues New Order to Access, Zenith, UBA, Others on Foreign Card Use for Tourists
- The Central Bank of Nigeria (CBN) has issued a new order to banks to enhance the acceptance and reliability of foreign payment cards
- The apex aims to solve the long-standing complaints from tourists and returning Nigerians who struggle with access to funds
- The new order is aimed at resolving frequent issues such as declined transactions, system downtime, among others
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The Central Bank of Nigeria has issued a fresh directive to deposit money banks and payment service providers, including Access Bank, Zenith Bank and United Bank for Africa, to improve the acceptance and reliability of foreign-issued payment cards in the country.
The move targets long-standing complaints by tourists and Nigerians returning from the diaspora who often struggle to access funds using international cards.
Source: Twitter
Addressing persistent transaction failures
The directive, contained in a circular dated December 18, 2025, was signed by Rita I. Sike, director of the Financial Policy and Regulation Department.
It applies to all deposit money banks and non-bank acquirers operating within Nigeria’s payment ecosystem.
According to the apex bank, the new order is aimed at resolving frequent issues such as declined transactions, system downtime, unclear pricing and operational bottlenecks that have undermined confidence in Nigeria’s payment system.
These challenges have been especially frustrating for foreign visitors and returning Nigerians who rely on international cards for everyday spending.
The CBN said improving access to funds and user experience for this group is part of its broader strategy to strengthen confidence in the country’s financial infrastructure and support tourism and cross-border transactions.
Mandatory ATM, PoS and online configuration
Under the 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.
Institutions must also comply fully with global card scheme standards and maintain all required certifications to enable seamless processing of foreign card transactions.
In addition, banks and payment service providers are expected to maintain high system uptime to reduce service disruptions that often lead to failed or delayed transactions.
Balancing security and convenience
While pushing for smoother transactions, the CBN stressed that security controls must not unfairly block legitimate users.
Banks have been directed to implement multi-factor authentication for withdrawals and online transactions above specified thresholds, while recalibrating fraud-monitoring systems to reduce false declines on genuine foreign card usage.
The apex bank warned against overly restrictive controls that deny legitimate customers access to their funds, noting that such practices damage trust in the financial system.
Clear pricing and exchange rate transparency
Transparency forms a major part of the new rules. Banks and payment service providers must clearly disclose applicable exchange rates and charges to customers before completing transactions.
The CBN said exchange rates should be market-driven and aligned with the prevailing official rate.
Transactions are only to proceed after customers explicitly accept the stated terms, with institutions required to retain evidence of such acceptance for audit purposes.
Liquidity, monitoring and merchant obligations
Banks are also required to maintain sufficient liquidity to settle foreign card transactions promptly and ensure merchants are paid in local currency.
Payment service providers must deploy transaction-monitoring systems capable of identifying unusual patterns, while strengthening know-your-customer and anti-money laundering controls for merchants handling foreign card payments.
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Merchants are expected to ensure proper signing of card-present transaction receipts and request valid identification where transactions appear suspicious.
All suspicious activities must be reported to the Nigerian Financial Intelligence Unit in line with existing regulations.
Chargebacks, complaints and sanctions
The circular further mandates acquirers to implement robust and auditable chargeback management processes, retain transaction records for at least 12 months, and provide quarterly training for merchants and agents on dispute resolution.
Consumer complaints arising from foreign card transactions must be resolved within approved timelines.
The CBN warned that unresolved cases escalated to the apex bank could attract sanctions.
Tourists and returning Nigerians experiencing difficulties have been advised to report incidents to the Consumer Protection and Financial Inclusion Department of the CBN, as the regulator reaffirmed its commitment to protecting consumers and improving confidence in Nigeria’s payment system.
CBN Revokes Aso Savings, Union Homes licences
Legit.ng earlier reported that the Nigeria Deposit Insurance Corporation (NDIC) has begun the verification and payment of insured deposits to customers of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc following the revocation of their operating licences by the Central Bank of Nigeria (CBN).
The development marks the formal commencement of the liquidation process for the two mortgage banks and signals the activation of statutory protections for depositors affected by the closures.
The CBN withdrew the licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc on December 15, 2025. Following this decision, the NDIC was appointed as liquidator in line with Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA) 2020.
Source: Legit.ng
