Grace Ashiru
The Central Bank of Nigeria (CBN) has changed the limits on how much you can spend on mobile payments in the country. These changes went into effect on June 27, 2023. These limits, outlined in the CBN’s document titled “Guidelines on Contactless Payments in Nigeria,” say that Nigerian accounts or wallets that use mobile payments will have a limit of N15,000 per transaction and a total daily limit of N50,000.
Under the new regulations, customers can conveniently make contactless payments of up to N15,000 per transaction and up to N50,000 per day without requiring their personal identification number (PIN) or undergoing biometric verification.
Musa Jimoh, the CBN’s Director of the Payment Systems Management Department, signed the circular announcing these guidelines. The CBN developed these guidelines to standardize payment system operations, encourage innovative product adoption, and ensure the financial system’s stability.
Contactless payments, which facilitate transactions without physical contact between the payer and the acquiring device, have been recognized as an innovative payment option suitable for low-value and high-volume transactions.
Various companies and services in Nigeria, including banks, commerce platforms, mobile payment providers, e- contactless payment apps, and transportation services, offer contactless payment options, contributing to the growing adoption of this payment method in the country.
The CBN’s move to limit contactless payments is meant to ensure that people who use these systems use good risk management methods and follow the rules.
It also aims to enhance the security and convenience of contactless payments, which utilize technologies like Near Field Communication (NFC) and Quick Response (QR) codes to enable customers to pay without physical contact with the merchant or payment terminal.
Customers must provide additional verification and authorization for contactless payments exceeding the prescribed limits, such as their PIN or biometric data. The existing Know Your Customer (KYC) requirements and limits on electronic payment channels will continue to apply for such transactions.
In cases where contactless payments exceed the daily cumulative limit of N50,000, customers must use contact-based technology, such as inserting or swiping their cards on the payment terminal.
The CBN says that these new transaction limits align with its mission to promote a safe and efficient payment system in Nigeria while protecting the interests of consumers and industry partners.
