The Central Bank of Nigeria (CBN) has implemented a daily limit of N50,000 for contactless payments. Contactless payments refer to transactions made without physical contact using various payment devices such as prepaid, debit, and credit cards, key fobs, mobile electronic devices, and wearable devices.
Musa Jimoh, the Director of Payments System Management Department at CBN, explained that this decision was made to address the risks associated with contactless payments. Transactions exceeding the set limit will require verification and authorization.
For transactions surpassing the prescribed limit, the existing know-your-customer (KYC) requirements and limits on electronic payment channels will apply.
The official statement stated:
“In line with the guidelines issued regarding contactless payments in Nigeria and considering the associated risks, the bank hereby defines transaction limits that necessitate verification and authorization.
“The transaction limits for contactless payments through accounts/wallets in Nigeria are as follows: a transaction limit of 15,000 and a daily cumulative limit of N50,000.
“Contactless payments exceeding these limits will require appropriate verification and authorization.
“Transactions exceeding the specified daily cumulative limit will be conducted using contact-based technology.”