The Central Bank of Nigeria (CBN) has imposed a maximum daily transaction limit of N50,000 for contactless payments.
The CBN in a circular released on Tuesday and signed by Musa Jimoh, the director of payments system management department, emphasised the need for verification and authorisation for transactions that surpass the specified limits due to the associated risks of contactless payments.
Jimoh said, “In light of the issuance of guidelines on contactless payments in Nigeria and considering the risks associated with contactless payments, the bank hereby defines transaction limits that require verification and authorisation.”
For contactless payments through accounts and wallets in Nigeria, the transaction limit is set at N15,000, with a daily cumulative limit of N50,000. Transactions exceeding these limits are classified as higher-value contactless payments and require appropriate verification and authorisation.
The CBN emphasised that transactions exceeding the limits would be subject to the existing know-your-customer (KYC) requirements and limitations of electronic payment channels. The apex bank added that transactions surpassing the stipulated daily cumulative limit would need to be conducted using contact-based technology.
Contactless payments offer a secure and convenient method of conducting transactions without the need for physical contact between the payment device and the payment terminal.
This payment method encompasses a range of devices, including prepaid, debit, and credit cards, key fobs, mobile electronic devices, and wearable devices. By utilising near-field communication (NFC) technology, users can simply tap or wave their payment device near the terminal to complete a transaction.