CBN Indefinitely Suspends Clearing of Cheques

By Adedapo Adesanya

The Central Bank of Nigeria (CBN) has suspended the clearing of cheques instruments in the Nigerian clearing system indefinitely due to the COVID-19 outbreak.

This was disclosed by the CBN in a circular signed by the apex bank Director on Banking Services Department, Mr Sam Okojere, on Monday to all Deposit Money Banks (DMBs) and the Nigeria InterBank Settlement System (NIBSS).

However, the CBN clarified that settlement activities for electronic instruments would continue to hold during this period of suspension.

Referenced BKS/DIR/GEN/ClR/O7/002, the nation’s monetary authority said the directive followed the lockdown issued by the President, Mr Muhammadu Buhari, on Sunday in Lagos and Ogun States as well as in the Federal Capital Territory (FCT).

The CBN said the directive will commence on Tuesday, March 31, meaning that no fresh cheque instrument will be allowed to pass through the clearing system effective on Tuesday.

The apex bank said that as a measure to ensure a better clearing and settlement activity, it was necessary to suspend the clearing of cheques instruments.

“Please recall that the first index case of COVlD-19 was recorded in Nigeria on February 27, 2020 and since that date, there has been some level of increase in the number of confirmed cases in the country.

“The President, through a nationwide broadcast yesterday, announced a locked down in Lagos and Ogun States and the Federal Capital Territory for two weeks in the interim, starting from 11:00 pm. of March 30, 2020 as a means of combating the spread of the virus and to ensure the safety of all Nigerians.

“In view of these recent developments and in furtherance to the Bank’s effort to ensure hitch-free clearing and settlement activities, the Central Bank of Nigeria hereby suspend, until further notice, the clearing of cheques instruments in the Nigerian Clearing System starting from March 31, 2020.

“For the avoidance of doubt, no fresh cheque instrument will be allowed to pass through clearing system on March 31, 2020. Only returned cheque would be treated on the said date,” the circular read.