Why CBN is lifting ban on cheque clearing

The Central Bank of Nigeria (CBN) said it has lifted the suspension it placed on the clearing of cheque in the Nigerian Clearing System.

Neusroom reported that the apex bank had, on Tuesday March 31, indefinitely suspended the clearing of cheques instruments in the Nigerian Clearing System.

The directive halted cheque payment during the period of the lockdown imposed on the Federal Capital Territory (FCT), Lagos and Ogun States by President Muhammadu Buhari.

Following the lifting of ban on movements in FCT, Lagos and Ogun from Monday May 4, CBN in a statement by its Director of Banking Services Department, Sam Okojere, said  the temporary suspension of cheque has been lifted with effect from Tuesday April 28.

“The bank in collaboration with relevant stakeolders ad reviewed the need for ceque as one of the payment instruments in Nigeria, despite the lockdown of some states and FCT,” the statement read.
“In view of this development, the Bank hereby lift the temporary suspension of cheque clearing in Nigeria. Cheque instruments will be allowed to pass through the clearing system, with effect from April 28, 2020.”

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A Lagos-based banker, Rasheed Akindiya had told Neusroom that the suspension put on hold all cheque transaction during the period of the lockdown and advised business owners not to accept cheque as means of payment while the suspension was effective.

“As a business person, you should avoid cheques as a means of payment until the lockdown is over and the suspension is lifted,” Akindiya had advised