Deposit Money Banks risk fines of up to N10m and the withdrawal of cheques from circulation if they engage unaccredited cheque printers, the Central Bank of Nigeria has warned.
The apex bank disclosed this in a circular dated February 10, 2026, 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, explained that the revised sanctions are part of ongoing 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.
The CBN 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 circular noted, “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,” with the penalty shared equally between banks and 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 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 printing jobs will earn a warning and a “Penalty of N1,000,000 in case of a repeat offence.”
Accredited cheque printers failing to submit cheque samples and quality assurance reports will face a “N5,000,000.00 fine.”
On subcontracting, the apex bank said subcontracting over 50 per cent of a job to another accredited printer or personaliser, outside 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 states that accredited cheque printers and personalisers failing to set up or execute a BCM/DRP arrangement with another accredited printer will be served a warning and given a minimum of three months’ notice to comply. Failure to execute within the deadline will result in suspension of accreditation.
Commercial banks and accredited cheque printers or personalisers failing to request 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 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 four weeks’ notice of changes affecting 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 failing to respond to queries arising from infractions will receive a warning and a “N1,000,000.00 fine per day if no response is obtained within seven days,” while continuous default exceeding 21 days will lead to “Suspension of Accreditation for a minimum period of 3 months.”
Commercial banks failing to validate MICR data at the point of truncation will face a “Minimum of N10,000.00 per instrument,” and the introduction of unapproved watermarked paper by cheque printers will result in “Withdrawal of cheques from circulation and N20,000,000.00 fine,” with “Withdrawal of Accreditation for a repeat offence.”
The CBN stated that revised sanctions will be applied based on complaints or CBN/MTIC audits, depending on the nature of the infraction.
Earlier in November 2025, the CBN had 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 aims 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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