The Central Bank of Nigeria (CBN) has warned deposit money banks against the use of unaccredited cheque printers, stating that offenders will face fines of up to N10 million per infraction, alongside other sanctions, including the withdrawal of affected cheques from circulation.

The apex bank said the directive is part of efforts to strengthen the security and integrity of Nigeria’s cheque clearing system under the Nigeria Cheque Standards (NCS) and the updated Nigeria Cheque Printers’ Accreditation Scheme (NICPAS 2.0).

In a circular dated February 10, signed by Hamisu Abdullahi, Director of the CBN’s Banking Services Department, the regulator noted that the revised sanctions reflect present realities in the banking industry and are aimed at protecting the nation’s payment system from fraud and operational lapses.

According to the CBN, banks that repeatedly violate the directive may face stiffer penalties, while serious breaches could lead to the suspension or withdrawal of accreditation granted to cheque printers and personalisers.

The circular also listed offences that could attract severe sanctions, including the introduction of unapproved security features, failure to submit cheque samples and quality assurance reports for checks, and failure to comply with mandatory production standards.

Other violations include subcontracting more than 50 percent of cheque production to another accredited printer or personaliser outside approved business continuity arrangements, as well as failure to produce or personalise cheques in line with established NCS and NICPAS standards.

The CBN further stressed the importance of proper business continuity measures, warning that failure to set up or execute a Business Continuity Management (BCM) or Operational Recovery Plan (ORP) arrangement with another accredited service provider could also attract penalties.

Although Nigeria continues to experience rapid growth in digital payment adoption, the regulator noted that cheques remain an important financial instrument within the banking system.

The apex bank said enforcement of the new sanctions is aimed at ensuring all cheques in circulation meet strict operational and security standards, reducing the risks of fraud, errors, and processing delays within the cheque clearing framework.

Banks were therefore urged to strengthen internal controls and compliance procedures, as non-compliance could expose them to significant financial and reputational consequences.

Industry observers said the tougher rules are expected to compel banks to review and audit their cheque production processes while tightening oversight of accredited cheque printers and personalisers.

They noted that holding both banks and printers accountable will help strengthen public confidence in Nigeria’s payment infrastructure and support the smooth operation of cheque clearing nationwide.

Under the revised sanction regime, the CBN stated that some offences could attract fines of N10 million per unapproved security feature, with penalties to be shared equally between the commercial bank involved and the accredited cheque printer.

Other breaches could attract fines ranging from N5 million to N20 million, depending on severity and whether the offence is repeated, alongside corrective measures such as mandatory reprinting or personalisation at the offender’s cost.

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