CBN Lifts Suspension on Cheque Clearing

By Modupe Gbadeyanka

The Central Bank of Nigeria (CBN) has announced lifting the temporary embargo earlier placed on clearing of cheques about a month ago.

The apex bank, after President Muhammadu Buhari closed movements in Abuja, Lagos and Ogun State from March 30, 2020, said it was suspending clearing of cheques in the nation’s banking system.

This move, according to the central bank, was to contain the spread of coronavirus disease in the country after it was speculated that the virus could be transmitted through cash.

This decision of the CBN had put strains in financial transactions in the country, especially for firms operating at the ports, which were exempted from the lockdown.

But in a circular on Monday, the bank said it has lifted the suspension and that holders of cheques were free to approach financial institutions for clearing from Tuesday, April 28, 2020.

“Please refer to our circular dated March 30, 2020, referenced BKS/DIR/GEN/CIR/07/002 on the above subject,” the circular signed by the Director in charge of Banking Services Department of the CBN, Mr Sam Okokere, stated.

Mr Okojere said, “In furtherance to its efforts in the development of a safe and efficient payments system in Nigeria, the bank in collaboration with relevant stakeholders has reviewed the need for cheque clearing to accommodate users of cheque as one of the payment instruments in Nigeria, despite the lockdown of some states and FCT.

“In view of this development, the bank hereby lifts the temporary suspension of cheque clearing in Nigeria.

Consequently, cheque instruments will be allowed to pass through the clearing system, with effect from April 28, 2020.

“Deposit Money Banks are encouraged to advise their customers of this directive.”