Deposit Money Banks risk a N10m fine and withdrawal of cheques from circulation if they engage unaccredited cheque printers, the Central Bank of Nigeria has said.
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The apex bank disclosed this in a circular dated February 10, 2026, and published on its website on Thursday, titled “Revised Sanctions on Defaulters of the Nigeria Cheque Standard and Nigeria Cheque Printers’ Accreditation Scheme 2.0.”
Addressed to “All Deposit Money Banks, Accredited Cheque Printers/Personalizers,” the circular, signed by the Director, Banking Services Department, Hamisu Abdullahi, said the revised sanctions were part of efforts to strengthen the clearing system.
“Please recall that the Central Bank of Nigeria issued a circular on Sanctions to defaulters of the Nigerian Cheque Standards and Nigeria Cheque Printers Accreditation Scheme in 2019,” the bank stated.
It added, “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 said, “In view of this, the Bank hereby stipulates the attached, as revised sanctions to erring banks and Accredited Cheque Printer / Cheque Personalizers for infringements of NCS/NIPAS 2.0. Please be guided accordingly.”
Under the revised framework, any commercial bank found to have engaged an unaccredited cheque printer or personaliser faces “Withdrawal of cheques from circulation and N10,000,000.00 fine,” while a repeat offence will attract “Withdrawal of cheques from circulation and N20,000,000.00 fine.”
The circular also provides that the introduction of unapproved security features by commercial banks and accredited cheque printers will attract “N10,000,000.00 per security feature,” noting that the “Penalty will be shared equally by Commercial Banks and Accredited Cheque Printers.”
Accredited personalisers that fail or refuse to submit personalised cheque samples for testing and analysis, where applicable, will pay a “N5,000,000.00 fine” based on CBN/MTIC’s audit.
Failure to encode cheques properly or meet mandatory security and quality standards by accredited cheque personalisers will attract a “Minimum of N10,000 per instrument,” while non-validation of orders before commencement of cheque printing jobs by accredited cheque printers will earn a warning and a “Penalty of N1,000,000 in case of a repeat offence.”
Accredited cheque printers that fail to submit cheque samples and quality assurance reports will face a “N5,000,000.00 fine.”
On subcontracting, the apex bank said subcontracting a significant portion of a job, above 50 per cent, to another accredited printer or personaliser other than in BCM/DRP situations will attract a “N20,000,000.00 fine,” and “Withdrawal of accreditation for a repeat offence.”
Subcontracting to a non-accredited printer or personaliser will result in “Suspension of license for a period of 6 months and N10,000,000.00 penalty.”
Failure to produce or personalise cheques in conformity with NCS/NICPAS standards will require reprinting or personalisation at own cost and a “N10,000,000.00 fine,” rising to “N20,000,000.00 fine for a repeat offence.”
The circular further stated that accredited cheque printers and personalisers that fail to set up or execute a BCM/DRP arrangement with another accredited printer or personaliser will be served a warning and given a minimum of three months’ notice to comply, adding that “Failure to execute within the stipulated deadline in (1) above will result in suspension of accreditation.”
Commercial banks and accredited cheque printers or personalisers that fail to request or obtain delivery confirmation of shipped consignments will receive a warning and a “Penalty of N2,000,000.00 in case of a repeat offence.”
Similarly, failure to give the mandatory six months’ notice of planned suspension or cessation of operations to CBN/MTIC will attract a warning and a “Penalty of N2,000,000.00 in case of a repeat offence.”
Failure to give the mandatory four weeks’ notice of changes in current arrangements that may affect accreditation status will also draw a warning and a “Penalty of N2,000,000.00 in case of a repeat offence.”
Accredited cheque printers and personalisers that fail to respond to queries arising from infractions will receive a warning and a “N1,000,000.00 fine per day, if response is not obtained within a 7-day grace period after the initial warning,” while continuous default exceeding 21 days after the initial warning will lead to “Suspension of Accreditation for a minimum period of 3 months.”
Commercial banks that fail to validate MICR data at the point of truncation will face a “Minimum of N10,000.00 per instrument.”
The introduction of unapproved watermarked paper by cheque printers will result in “Withdrawal of cheques from circulation and N20,000,000.00 fine,” and “Withdrawal of Accreditation for a repeat offence.”
The circular stated that the revised sanctions are to be applied based on complaints or CBN/MTIC audits, depending on the nature of the infraction.
Earlier in November 2025, the CBN proposed stricter sanctions for individuals who repeatedly issue dud cheques, including an automatic five-year ban for each repeat offence.
The measure was part of a new exposure draft titled Guidelines on the Treatment of Dud Cheques by Banks and Other Financial Institutions in Nigeria, released for industry feedback.
The document aimed to tighten reporting standards, strengthen financial discipline and restore confidence in the use of cheques, which the CBN said continue to be abused despite long-standing legal restrictions.
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