Regulatory Framework for Facilitating Contactless Payment
Transactions in Nigeria1
Understanding Contactless Payments
The term "contactless payment" refers to a secure
method for consumers to purchase products or services using a
debit, credit, smartcard, or another payment device utilising radio
frequency identification (RFID) and near-field communication (NFC)
technologies. This payment method works by tapping a payment card
or other device near a point-of-sale terminal equipped with
contactless payment technology. Contactless payment is also
referred to as tap-and-go or tap by some banks and
retailers.2
The Regulatory Framework for Contactless Payments
The Central Bank of Nigeria ("CBN") issued the
Guidelines on Contactless Payments in Nigeria ("CBN
Guidelines" or "the Guidelines")3
pursuant to the provisions of section 2(d) of the Central Bank of
Nigeria Act, 2007 (CBN Act)4 and its power to make
regulations for bank and other financial institutions under
