The Central Bank of Nigeria (CBN) has rolled out revised sanctions for banks and accredited cheque printers under the Nigeria Cheque Standards (NCS) and the Nigeria Cheque Printers’ Accreditation Scheme (NICPAS), tightening oversight of the country’s clearing system as part of efforts to improve safety and efficiency.
The revised framework was disclosed in a circular dated February 10, 2026 and signed by Hamisu Abdullahi, director of the Banking Services Department, and addressed to all Deposit Money Banks and accredited cheque printers and personalisers.
The apex bank had previously issued a sanctions grid for defaulters in 2019. According to the circular, a review has now become necessary to reflect current realities in the banking industry and to strengthen the integrity of the Nigeria Clearing System. The CBN said the updated sanctions apply to erring banks and accredited cheque printers or personalisers for infractions under NCS/NICPAS 2.0.
Under the revised regime, personalisers that fail or refuse to submit accredited personalised cheque samples for testing and analysis face a N5 million fine following a CBN or MTIC audit. Commercial banks that engage unaccredited cheque printers or personalisers risk withdrawal of such cheques from circulation and a N10 million fine, rising to N20 million and withdrawal for repeat violations.
Read also: Naira gap narrows as BDCs expect dollar sales by banks
Accredited cheque personalisers that fail to properly encode cheques or meet mandatory security and quality standards will be liable to a minimum penalty of N10,000 per instrument, based on complaints or audit findings. Printers that commence cheque printing jobs without proper order validation will receive a warning, with a N1 million penalty for repeat offences.
The CBN also imposed a N10 million penalty per unapproved security feature introduced into cheque production. The fine will be shared equally between commercial banks and accredited cheque printers, with each bearing N5 million where applicable.
Accredited cheque printers that fail to submit cheque samples and quality assurance reports are liable to a N20 million fine. Subcontracting more than 50 percent of a job to another accredited printer or personaliser outside a Business Continuity Management or Disaster Recovery arrangement will attract a N20 million penalty and possible withdrawal of accreditation for repeat breaches.
Failure to produce or personalise cheques in line with NCS/NICPAS standards will require reprinting or personalisation at the offender’s cost in addition to a N10 million fine, escalating to reprint at own cost and N20 million for repeat violations.
Printers and personalisers that fail to set up or execute a Business Continuity Management or Disaster Recovery Plan with another accredited operator will first receive a warning and a minimum of three months’ notice to comply. Failure to meet the deadline will result in suspension of accreditation.
Subcontracting jobs to non-accredited printers or personalisers will attract suspension of accreditation for six months and a N10 million penalty.
Operators that fail to request or obtain delivery confirmation of shipped consignments face a warning and a N2 million fine for repeat offences. Similarly, failure to give the mandatory six months’ notice before planned suspension or cessation of operations, or the required four weeks’ notice of changes that may affect accreditation status, will attract warnings and N2 million penalties for repeat breaches.
Cheque printers and personalisers that fail to respond to CBN or MTIC queries arising from infractions will receive a warning, followed by a N1 million fine per day if no response is received within seven days after the initial warning. Continuous default exceeding 21 days may result in suspension of accreditation for a minimum of three months.
Commercial banks that fail to validate Magnetic Ink Character Recognition data at the point of truncation face a minimum penalty of N10,000 per instrument.
The introduction of unapproved watermarked paper will attract withdrawal of affected cheques from circulation and a N20 million fine, with withdrawal of accreditation for repeat offences.
The CBN directed all stakeholders to be guided accordingly, signalling tougher enforcement of cheque production and clearing standards as part of its broader push to safeguard confidence in Nigeria’s payments and settlement infrastructure.
