The Central Bank of Nigeria (CBN) has implemented a daily limit of N50,000 for contactless payments made through bank accounts or digital wallets.

In addition, the central bank has imposed a maximum transaction amount of N15,000 for contactless payments.

Yesterday, the CBN made this information known through a circular titled "Transaction Limits on Contactless Payments." The circular, signed by Mr. Musa Jimoh, the Director of the Payment System Management Department at CBN, stated that in line with the Guidelines on Contactless Payments in Nigeria and considering the potential risks associated with such payments, the bank has established transaction limits that necessitate verification and authorization.

In Nigeria, the transaction limits for contactless payments made through accounts or wallets are as follows: The maximum amount per transaction is N15,000, and the maximum cumulative amount per day is N50,000.

Transactions that surpass these specified limits and involve higher values will necessitate proper verification and authorization.

For such transactions, the existing Know Your Customer (KYC) requirements and limits on electronic payment channels will be applicable.

Transactions exceeding the specified daily cumulative limit should be conducted using contact-based technology. Please adhere to this guideline.

As per the recently issued 'Guidelines for Contactless Payments in Nigeria' by the CBN, contactless technology refers to a payment method that allows the use of payment instruments without the need for physical contact with devices. Contactless technology in payments offers users a convenient, efficient, and cashless alternative.

Furthermore, the guidelines state, "Contactless payment instruments encompass various forms such as prepaid, debit, and credit cards, stickers, fobs, wearable devices, tokens, and mobile electronic devices. Contactless-enabled payment terminals effectively interact with these contactless payment devices to facilitate seamless payments."