Reactions have continued to pour in following a new directive by the Central Bank of Nigeria ordering banks and non bank financial institutions to reconfigure their payment infrastructure to fully support foreign issued cards across the country.
The directive, issued on December 18, 2025, instructs all deposit money banks and licensed acquirers to upgrade their automated teller machines, point of sale terminals and virtual payment platforms to accept international cards, including Visa, Mastercard and American Express. The move is aimed at improving payment efficiency, strengthening transaction security and making Nigeria more accessible to foreign visitors and diaspora Nigerians.
Under the new policy, the CBN introduced mandatory multi factor authentication for foreign card transactions that exceed specific limits. Transactions above 200 dollars daily, 500 dollars weekly or 1,000 dollars monthly will now require additional security checks such as one time passwords or biometric verification. The apex bank says the measure is designed to reduce fraud and rising chargeback disputes, especially during peak travel and shopping seasons.
The circular, signed by the Director of Financial Policy and Regulation at the CBN, Rita Sike, stressed the need for tighter controls as concerns grow over fraudulent foreign card usage and post transaction disputes. Banks were also instructed to ensure uninterrupted service for foreign cardholders, in line with Nigeria’s broader push to boost tourism, attract foreign capital and improve ease of doing business.
The directive comes against the backdrop of renewed stability in Nigeria’s foreign exchange market. Recent data show daily FX market turnover of about 500 million dollars without direct intervention from the CBN. The country also recorded over 20.98 billion dollars in foreign capital inflows within the first ten months of 2025, a development analysts attribute to ongoing reforms under CBN Governor Olayemi Cardoso.
Industry watchers note that the policy builds on earlier reforms such as the Electronic Foreign Exchange Matching System introduced in October 2024 to improve transparency and efficiency in FX transactions. Legal and financial experts say the new card directive also seeks to address long standing concerns around dollarization and limited access for foreign investors, who often face hurdles when repatriating funds.
Stakeholder reactions have been mixed. Many bankers and economists see the move as timely, particularly during the festive travel season popularly known as Detty December. Some finance professionals argue that seamless foreign card usage could significantly improve the experience of tourists and returning Nigerians, while boosting spending, remittances and investor confidence.
Political commentators and market analysts have linked the policy to broader economic reforms under President Bola Ahmed Tinubu’s administration, praising the return of a willing buyer willing seller FX framework and improved market liquidity. Supporters believe wider acceptance of foreign cards could reduce pressure on the naira and encourage more foreign direct investment.
However, critics have raised questions about the enforceability of the directive. Some financial analysts argue that the CBN cannot impose authentication rules on foreign card issuers, noting that global payment networks like Visa and Mastercard operate their own risk and security frameworks. Others say the real challenge lies in post transaction chargebacks, where foreign users dispute transactions after leaving the country.
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These critics have suggested alternative approaches such as shifting liability to issuing banks for approved transactions, enforcing stricter dispute timelines and working more closely with international payment networks on risk sharing. They warn that excessive authentication requirements could lead to failed transactions and lost sales for merchants, particularly in the retail and hospitality sectors.
Business owners have also expressed cautious optimism. While many welcome easier payment access for foreign customers, others are concerned about the cost of compliance and potential disruptions during high volume periods. Analysts say the success of the policy will depend largely on how smoothly banks implement the changes and how well they coordinate with global payment providers.
On social media, the directive has generated significant attention, with posts on X and Instagram drawing thousands of views. While some users have focused on the technical details, others have linked the policy to Nigeria’s broader economic recovery and improving FX performance. Media coverage has remained largely factual, highlighting the balance the CBN is trying to strike between security and accessibility.
As Nigeria continues to reform its payment and foreign exchange systems, the foreign card directive represents a major test of policy execution. Whether it delivers safer transactions without discouraging legitimate users will become clearer in the coming months. For now, banks, merchants and cardholders are watching closely as implementation begins across the financial system.
