The Central Bank of Nigeria, CBN, has set a daily limit of N50,000 for contactless payments made through bank accounts or digital wallets.
The apex bank also set a limit of N15,000 per transaction for contactless payments.
The CBN announced this in a circular titled “Transaction Limits on Contactless Payments” on Tuesday.
“Following the issuance of the Guidelines on Contactless Payments in Nigeria and in recognition of the risks associated with contactless payments, the Bank hereby defines transaction limits above which verification and authorisation are required,” said Mr. Musa Jimoh, Director, the Payment System Management Department, CBN.
“The following transaction thresholds shall apply to contactless payments made in Nigeria using accounts or wallets: The daily cumulative limit maximum is N50,000, and the transaction limit maximum is N15,000.
“Higher-value contactless payments are transactions that exceed the above-stated limits and shall require appropriate verification and authorisation.
“For these transactions, existing Know Your Customer (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.”
The CBN released “Guidelines for Contactless Payments in Nigeria” on Tuesday, and it states that contactless technology “enables an alternative payment method wherein payment instruments are used without physical contact with devices.” Users have quick, convenient, and effective cashless options thanks to contactless technology.
The statement continued, “Examples of contactless payment instruments include pre-paid, debit, and credit cards, stickers, keychains, tokens, wearable electronics, and mobile electronic devices. To make payments easier, contactless-enabled payment terminals work with contactless payment equipment.