The Central Bank of Nigeria (CBN) says banks and cheque printers now risk a fine of N10 million for using unapproved security features.
The apex bank disclosed this as it revised the Sanction Grid of the Nigeria Cheque Standards (NCS) and the Nigeria Cheque Printers’ Accreditation Scheme (NICPAS).
The updated sanctions were announced in a notice signed by Director, Banking Services Department, Hamisu Abdullahi, and dated February 10, 2026.
The move is aimed at enhancing the efficiency, integrity, and security of Nigeria’s banking and cheque clearing system.
What they are saying
In the circular, the apex bank stressed the need for strict adherence to established standards to safeguard financial transactions and strengthen the clearing process.
- “In furtherance of the Bank’s commitment to increase the efficiency and safety of the Nigeria Clearing System, it has become imperative to review the aforementioned Sanction Grid to reflect the current realities in the banking industry,” the CBN stated.
The revised sanction framework covers a broad range of infractions, including:
- Failure to submit cheque samples for approval
- Non-compliance with mandatory security features
- Improper engagement of accredited cheque printers
- Introduction of unauthorized security features
Penalties also range from fines of up to N20 million for a repeat offence to suspension of accreditation or withdrawal of non-compliant cheques from circulation.
A key update in the revised grid is the imposition of sanctions for the use of unapproved security features.
Banks and cheque printers found guilty of this violation may face fines of up to N10 million for each infraction.
Backstory
The latest review builds on a 2019 circular that established the framework for the Nigeria Cheque Standards (NCS) and the Nigeria Cheque Printers’ Accreditation Scheme (NICPAS), as part of efforts to modernise and secure the country’s cheque processing system.
- At the time, the CBN directed all Deposit Money Banks (DMBs) to begin implementing the revised cheque standards from September 1, 2019, to ensure a smooth transition to the updated format.
- The apex bank also required that both old and new cheques used during the transition period comply with the revised standards, reinforcing its commitment to improving the safety and efficiency of the Nigerian Clearing System.
The policy framework is anchored on provisions of the reviewed NCS and NICPAS documents, as well as the powers granted to the CBN under Sections 2(d), 33(1)(b), and 47(2) of the CBN Act 2007.
More insight
In the latest notice, the CBN warned that failure to provide adequate notice before planned operational changes or service suspensions could attract penalties, including possible suspension of accreditation.
The Bank emphasized that the updated sanctions are intended to serve as a deterrent and ensure full compliance with cheque printing and processing standards, thereby preserving confidence in the financial system.
What you should know
The revised cheque book standard became fully operational in April 2021. At the time, the CBN directed all DMBs to educate customers on the new cheque format ahead of full enforcement.
The apex bank noted that the clarification was necessary because some stakeholders had misinterpreted earlier directives.
The revised sanction framework is now expected to reinforce compliance and further strengthen the integrity of Nigeria’s cheque clearing process.
