COVID-19: CBN Suspends Check Clearing Amid Lockdown

The Central Bank of Nigeria (CBN) has announced the temporary suspension of cheque clearing and settlement activities in the Nigerian Clearing System effective from March 31.

The apex bank disclosed this in a statement dated Monday, March 30, saying that the move was to ensure a hitch- free settlement activities within the period of the lockdown.

President Muhammadu Buhari had on Sunday in a national broadcast directed a lockdown of Lagos, Abuja and Ogun for two weeks, which was effective March 30, by 11:00 p.m.

According to the CBN, only returned or existing third-party cheques filed before the suspension would be cleared during the suspension period.

Following the directives, third party cheques issued by customers of other Deposit Money Banks (DMB) would not be treated.

Meanwhile, checks issues by the same DMB would be cleared since it does not have to pass through the Nigerian Clearing System, regulated by the Nigeria Inter-Bank Settlement Systems PLC (NIBSS).

The Nigerian Clearing System is a platform that integrates all DMBs and makes it possible for an account holder of a bank to easily clear cheque issued to them by an account holder of a different bank.