The apex bank also announced a one-time amount of ₦15,000 limit per transaction for contactless payments.
The new transaction limit which will be effective from June 27, 2023, was announced via a circular signed by the Director of the Payment System Management Department, Mr. Musa Jimoh.
Part of the circular read: “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: Transaction limit maximum amount is ₦15,000 and daily cumulative limit maximum amount is ₦50,000.
“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 identified contactless transactions as payments which involve the execution of financial transactions without actual contact between the payer/account owner and the acquiring devices. This means the user does not need to enter their PIN or biometric verification while conducting such transactions.
Customers who wish to conduct transactions above the stipulated limits have been advised to follow through by presenting the appropriate verification and authorization while transactions above the stated limits will be conducted using a contact-based payment option.
All payment service providers, banks and other financial institutions have been advised to comply strictly with the guidelines issued by the apex bank.