By Daniel A. Ochonma-

The Central Bank of Nigeria (CBN) has directed all banks and payment acquirers to configure their ATMs, POS terminals, and virtual channels to accept foreign‑issued cards. The policy is designed to improve transaction continuity for international visitors, support tourism, formalise diaspora engagement and remittances, and align Nigeria’s payment ecosystem with global standards. While this represents a significant step toward modernisation and accessibility, it also introduces important security, financial, and operational risks that international travelers and diaspora Nigerians must take into account.

Under the directive, financial institutions must ensure full acceptance of foreign cards across all ATM and POS infrastructure, implement multi‑factor authentication (MFA) for transactions above $200 daily, $500 weekly, and $1,000 monthly, and enforce approved ATM withdrawal limits while maintaining adequate liquidity for settlement. Banks are required to clearly disclose exchange rates and all associated charges, obtain user consent before completing transactions, and settle merchant payments in naira.

The directive further mandates enhanced transaction monitoring, stronger KYC/AML controls for merchants, and proper documentation of all card‑present transactions, including signed receipts and ID verification where necessary. Acquirers must support contactless payments, maintain robust chargeback and dispute‑resolution processes, retain transaction records for at least 12 months, and provide quarterly training to merchants. They must also recalibrate fraud‑monitoring systems to reduce false declines, report suspicious activity to the NFIU, and direct travelers experiencing difficulties to the CBN Consumer Protection Department.

Despite all the policy embedded control mechanism, notable risks remain. Nigeria continues to present a high‑risk environment for card‑present fraud, including ATM skimming, cloning, terminal tampering, compromised POS devices, and social engineering attempts. Foreign cards—often carrying higher FX value—may attract targeted fraud, leading to unauthorized transactions or account disruption. Financial risks also persist due to unfavourable FX rates, Dynamic Currency Conversion (DCC), foreign transaction fees, acquirer charges, and discrepancies between authorization and settlement rates, all of which can significantly increase transaction costs.

Operational challenges add further complexity. Network downtime, ATM cash shortages, POS failures, and delays in MFA delivery—especially for travelers using foreign mobile networks—can disrupt legitimate transactions. Authentication issues may also arise where OTPs fail to deliver, issuing banks block transactions due to geographic risk, or systems between Nigerian acquirers and foreign issuers are not fully aligned. Cash withdrawals can be particularly expensive due to international ATM fees, FX markups, cross‑border authentication charges, and local acquirer fees.

While the CBN encourages financial institutions to refer travelers facing card‑payment difficulties to its Consumer Protection Department, the practical resolution of disputed transactions remains challenging. Issues such as unauthorized POS charges or failed but debited transactions require coordination between the Nigerian merchant or acquiring bank and the traveler’s home‑country card issuer. Because each party operates under different jurisdictions, regulatory frameworks, and dispute‑resolution timelines, the process can become lengthy, fragmented, and complex.

To mitigate these risks, travellers should prioritise secure transaction locations such as bank branches, airports, reputable hotels, and major retail outlets, while avoiding unsupervised terminals. They should decline DCC and always opt to be charged in naira. Using travel‑optimised FinTech cards with low fees, real‑time alerts, and strong fraud protection can reduce exposure, and conducting a small test transaction before larger payments can help clarify costs. Travelers should also notify their issuing bank before departure, use mobile wallets where available, and maintain a backup plan—such as a secondary card, emergency USD/EUR, or a funded Nigerian account. Real‑time monitoring through alerts and freeze/unfreeze controls further enhances security.

For diaspora professionals in financial services, compliance, or risk management, the directive signals a broader push toward interoperability with global card networks and increased regulatory emphasis on transparency and consumer protection. It also highlights the need for heightened fraud‑risk awareness and presents opportunities to strengthen cross‑border payment reliability. While the policy is directionally positive, navigating Nigeria’s evolving payment infrastructure requires informed and cautious engagement.

In conclusion, the CBN’s directive aims to make Nigeria more accessible for foreign cardholders, including Nigerians in the diaspora. However, the realities of the payment environment mean that vigilance, preparation, and informed decision‑making remain essential. By adopting the recommended mitigation measures contained therein which by no means inexhaustible, travelers can transact more safely, efficiently, and cost‑effectively while in the country.

Dan.ochonma@gmail.com