Cheques might feel like a thing of the past, but they are quietly making their way back into Nigeria’s financial ecosystem, with the value of issued cheques hitting a staggering ₦5.15 trillion ($3.55 billion) in Q1 2025. This renewed usage, however, has brought a sharp rise in fraud, forcing the Central Bank of Nigeria (CBN) to introduce a new rule.
The crackdown is severe: if you issue three cheques that bounce due to insufficient funds, you will face a five-year banking ban.
This is more than a slap on the wrist. Under the new rule, customers classified as “serial dud cheque issuers” will face a near-total financial lockout: they will lose access to the clearing system (the mechanism that allows banks to process cheques), denied all forms of bank credit—including loans and mortgages—for at least five years, and barred from opening any new current accounts for the duration of the ban.
Greater scrutiny: The CBN’s move is an attempt to enforce discipline and restore integrity and confidence in the payments system, which directly impacts the digital economy. The five-year ban is routed through the Credit Risk Management System and multiple credit bureaus, effectively blacklisting offenders across the financial sector.
The rules also put banks on the hook: institutions that fail to report dud cheques or enforce the ban risk fines of up to ₦5 million ($3,439.17) per violation, with Executive Compliance Officers and Chief Technology Officers now personally liable for compliance failures. By tightening the screws here, the CBN is reminding everyone how seriously it wants to fight fraud.
