The Central Bank of Nigeria (CBN) has introduced tougher sanctions on commercial banks and cheque printers, imposing fines of up to N10 million per infraction for the use of unapproved security features on cheques.
The revised penalties, announced in a circular dated February 10, 2026, were signed by the Director of the Banking Services Department, Hamisu Abdullahi.
The move is part of efforts to strengthen the integrity, efficiency and security of Nigeria’s cheque clearing system.
Under the updated sanction framework, banks that engage unaccredited cheque printers or fail to comply with approved cheque standards risk heavy penalties.
Infractions covered under the revised grid include:
- Failure to submit cheque samples for approval
- Non-compliance with mandatory security features
- Engagement of unaccredited cheque printers
- Introduction of unauthorised security features
- Failure to provide adequate notice before operational changes
Banks and accredited cheque printers found guilty of introducing unapproved security features may face fines of up to N10 million per violation, while repeat offenders could be fined as much as N20 million.
Other penalties include suspension of accreditation and withdrawal of non-compliant cheques from circulation.
The apex bank said the review became necessary to reflect “current realities in the banking industry” and to safeguard financial transactions.
“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 sanction grid,” the CBN stated.
The regulator emphasised that strict adherence to the Nigeria Cheque Standards (NCS) and the Nigeria Cheque Printers’ Accreditation Scheme (NICPAS 2.0) is essential to preserving trust in the financial system.
The sanctions build on a 2019 circular that introduced the revised Nigeria Cheque Standards and accreditation requirements for cheque printers as part of efforts to modernise and secure cheque processing in Nigeria.
Deposit Money Banks were directed at the time to implement the revised standards from September 1, 2019, with the updated cheque format becoming fully operational in April 2021.
The policy framework is anchored on provisions of the reviewed NCS and NICPAS documents, as well as Sections 2(d), 33(1)(b), and 47(2) of the CBN Act 2007.
With the updated sanctions now in effect, the CBN is signalling zero tolerance for breaches in cheque printing and processing standards.
The tougher penalty regime is expected to deter non-compliance, protect the clearing system from vulnerabilities, and reinforce confidence in Nigeria’s banking sector.
