Lagos, Nigeria – The Central Bank of Nigeria says it will fine banks and cheque printers up to N10 million (approximately $6,400) for using unapproved security features. The penalty is part of revised sanctions introduced this week to strengthen the integrity of the country’s cheque clearing system.
Okay News reports that the updated Sanction Grid was announced in a notice signed by Hamisu Abdullahi, Director of the Banking Services Department, dated February 10, 2026. The framework revises the Nigeria Cheque Standards and the Nigeria Cheque Printers’ Accreditation Scheme, both established in 2019 to modernise and secure cheque processing across the country. The Central Bank stated that the review became necessary to reflect current realities in the banking industry and to safeguard financial transactions.
The revised sanction framework covers multiple categories of infractions. Banks and cheque printers that fail to submit cheque samples for approval, introduce unauthorised security features, or improperly engage non-accredited printers will face financial penalties. First-time offenders risk fines of up to N10 million per violation, while repeat offenders may be penalised as much as N20 million (approximately $12,800) . Additional sanctions include suspension of accreditation or outright withdrawal of non-compliant cheques from circulation.
The Central Bank emphasised that strict adherence to established cheque standards is essential for preserving public confidence in the financial system. It warned that failure to provide adequate notice before planned operational changes or service suspensions could also attract penalties, including possible suspension of accreditation. The updated sanctions are intended to serve as a deterrent and ensure full compliance across all deposit money banks and accredited printing firms.
Nigeria’s cheque clearing system processes millions of transactions annually, and security breaches or non-compliant instruments can expose financial institutions and customers to fraud risks. The Central Bank first directed all deposit money banks to implement revised cheque standards from September 1, 2019, mandating that both old and new cheques used during the transition period meet the updated format requirements. The policy framework derives its authority from Sections 2(d), 33(1)(b), and 47(2) of the Central Bank of Nigeria Act 2007.
The revised cheque book standard became fully operational in April 2021. At that time, the Central Bank directed all deposit money banks to educate customers on the new cheque format ahead of full enforcement. The clarification was necessary because some stakeholders had misinterpreted earlier directives. With this latest sanction review, regulators aim to close remaining compliance gaps and further strengthen the integrity of Nigeria’s cheque clearing process.
What happens next will depend on how quickly banks and printers adjust their operations to meet the updated standards. Industry observers expect intensified monitoring by banking supervisors in the coming months. Full enforcement of the new sanction grid takes effect immediately.
 for using unapproved security features. The penalty is part of revised sanctions introduced this week to strengthen the integrity of the country's cheque clearing system.){kind=link}