New transaction restrictions for contactless payments have been released by the Central Bank of Nigeria (CBN), and they will take effect on June 27, 2023.
Contactless payments made through accounts or wallets in Nigeria would have a transaction limit of N15,000 and a daily cumulative maximum of N50,000, according to the CBN’s Guidelines on Contactless Payments in Nigeria.
Customers can now make contactless payments of up to N15,000 per transaction and N50,000 daily without providing a PIN or a biometric authentication method.
Musa Jimoh, the director of the Payment Systems Management Department, signed the document.
The change aims to increase the convenience and security of contactless payments, which allow customers to make purchases without making direct touch with a merchant or a payment terminal by using technologies like Near Field Communication (NFC) and Quick Response (QR) codes.
Customers will need to provide sufficient verification and authorization, such as their PIN or biometric data, for greater-value contactless purchases that exceed these caps.
According to the CBN, the Know Your Customer (KYC) guidelines and restrictions on electronic payment channels will apply to these transactions.
The CBN also said that contact-based technology, such as inserting or swiping the card on the payment terminal, will be required for contactless payments over the prescribed daily cumulative limit of N50,000.
According to the CBN, the new transaction restrictions are in keeping with its responsibility to support a secure and effective payment system in Nigeria and to safeguard the interests of customers and other industry stakeholders.
The CBN also issued extensive guidelines on the operations of contactless payment in Nigeria.
See the link to the guideline attached below.
CBN Contactless Payments Guidelines
Meanwhile, See excerpts of the press release below
“Following the issuance of the Guidelines on Contactless Payments in Nigeria and in cognisance of the risks associated with contactless payments, the Bank hereby defines transaction limits above which verification and authorisation are required. Transaction limits for contactless payments through accounts/wallets in
Nigeria shall be as follows:
Daily Cumulative Limit – N15,000
Maximum Amount – N50,000
Higher-value contactless payments are transactions that exceed the above-stated limits and shall require appropriate verification and authorisation.
For these transactions, existing KYC requirements and limits on the electronic payment channels shall apply. Limits above this stipulated daily cumulative limit shall be conducted using contact-based technology.
Please be guided accordingly.
Musa I. Jimon
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