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The short answer
A cheque paid into a Nigerian bank is deemed paid by 10pm on the next working day (T+1) unless it is returned, and paper cheques above ₦10 million face value cannot pass through clearing under the 2018 clearing rules. Do not release goods until the money is actually in your account; for large or one-off sales, a bank transfer is safer and faster.
Cheques are less common than they were, but schools, churches, government contractors and older corporate clients still pay with them. For a small business the question is practical: when is the money really yours, what happens if the cheque bounces, and when should you simply say "please send a transfer instead"? This guide sets out the rules as they stand in October 2026, with sources.
How long a cheque takes to clear
Cheques deposited into your account at a bank other than the drawer's bank go through the Nigerian clearing system. Under the revised Nigeria Bankers' Clearing System rules that took effect on 1 September 2018, a paper instrument is deemed paid by 10pm on the next working day (T+1) unless it has been returned unpaid, has a special caution on it, or the value date has been extended. Electronic instructions sent at least two hours before a session closes can settle the same day.
The CBN's cheque truncation guidelines describe the same rhythm: the cheque is scanned and presented as an image, clears on T+1, and value reaches the customer on the morning of T+2. In practice that means a cheque you pay in on Monday is normally usable on Tuesday night or Wednesday morning, if it is good.
- Day 0 (deposit): your bank stamps and scans the cheque. The amount may show as "uncleared" or not show at all.
- T+1: the paying bank either honours the cheque or returns it. If it is not returned by the deadline it is treated as paid.
- T+2 morning: value is normally available to you.
- Weekends and public holidays do not count as working days, so a Friday deposit moves into the next week.
The ₦10 million cap and other limits
The same 2018 clearing rules set a maximum face value of ₦10 million for paper instruments in clearing, "or as may be reviewed by the CBN". A customer who wants to pay more than that by cheque cannot use the normal clearing route. Ask for an electronic transfer instead.
There is a second limit to keep in mind if you are the one cashing a cheque over the counter. The CBN's cash withdrawal circular effective 1 January 2026 caps third-party cheque encashment over the counter at ₦100,000, and that amount counts toward the weekly cash limit (₦500,000 for individuals, ₦5 million for corporates). Larger cheques should be paid into an account, not cashed.
What happens if the cheque bounces
Under the Dishonoured Cheques (Offences) Act, it is an offence to obtain goods, services or credit with a cheque that is dishonoured for lack of funds, if the cheque was presented within three months of the date on it. The penalty stated in the Act is two years' imprisonment without the option of a fine for an individual, and a fine of not less than ₦5,000 for a company; company officers can also be liable as individuals. Paying by cheque for an enforceable contract counts as obtaining credit. The drawer has a defence if they reasonably believed the cheque would be honoured.
Two points matter for you as the business. First, the three-month window: present the cheque promptly. Second, the criminal route punishes the drawer but does not by itself put money in your account. To recover the debt you still need a demand, a negotiated payment, or a civil claim, such as a small claims action in Lagos for sums up to ₦5 million. Our overview of how to get paid in Nigeria compares the faster options.
Crossings and post-dated cheques
The Bills of Exchange Act lets the drawer or holder cross a cheque so it can only be paid into a bank account (general crossing), or into a named bank (special crossing). Ask customers to cross cheques made out to your business. A post-dated cheque cannot be presented before its date; the cheque truncation guidelines treat stale and post-dated items as a shared liability between banks. No Nigerian statute fixes a "stale" period for cheques in the sources we checked, so ask your bank how old a cheque it will accept.
When to insist on a transfer
A cheque gives the customer time and gives you risk. A transfer settles almost immediately and leaves a clear record. Ask for a transfer when:
- the goods leave your premises the same day, or the service cannot be taken back
- the customer is new, or you only have a phone number for them
- the amount is above ₦10 million (it cannot clear as a paper cheque)
- the cheque is post-dated, has alterations, or the words and figures do not match
- you need the money before a supplier or payroll deadline
Worked example
Example: a school pays a furniture supplier ₦3,500,000 by cheque, deposited on Monday 9 November. If not returned, it is deemed paid by 10pm on Tuesday and value is normally available Wednesday morning. If the supplier delivers on Monday afternoon and the cheque is returned on Tuesday for lack of funds, the supplier is now chasing a debt for furniture already installed. Delivering on Wednesday, after checking the balance, removes that risk at the cost of two days.
What to check first
- Payee name matches your registered business or company name exactly.
- Amount in words and figures agree, and there are no alterations.
- The date is today or earlier, and not so old that your bank will refuse it.
- The cheque is crossed, and you deposit it rather than cash it.
- You wait for cleared value before releasing goods, and keep a copy of the cheque and deposit slip.
Where Pryme fits
A Pryme Business Account gives each customer a way to pay by transfer, including dedicated account numbers and bank-transfer checkout free of charge. Once paid, you can issue a verifiable receipt with VerifyDoc.ai that the payer can check is genuine.
Questions people ask
How many days does it take for a cheque to clear in Nigeria?
Under the 2018 clearing rules a cheque is deemed paid by 10pm on the next working day (T+1) unless returned, and value is normally available on the morning of T+2. Weekends and public holidays are not counted.
What is the maximum amount for a cheque in Nigeria?
The 2018 Nigeria Bankers' Clearing System rules cap paper instruments in clearing at ₦10 million face value, subject to CBN review. Larger payments should be made by electronic transfer.
Is issuing a dud cheque a crime in Nigeria?
Yes. The Dishonoured Cheques (Offences) Act makes it an offence to obtain goods, services or credit with a cheque dishonoured for lack of funds when presented within three months of its date. This is information, not legal advice.
Can I cash a customer's cheque over the counter?
Only up to ₦100,000 for a third-party cheque under the CBN cash withdrawal rules effective 1 January 2026, and it counts toward your weekly cash limit. Pay larger cheques into your account.
Sources
- BusinessDay: CBN gives September 1 date for revised clearing rules (2018) · accessed Oct 2026
- CBN: Guidelines for Cheque Truncation in Nigeria (Oct 2011) · accessed Oct 2026
- Channels TV: CBN revises cash withdrawal rules effective January 2026 (3 Dec 2025) · accessed Oct 2026
- Dishonoured Cheques (Offences) Act, Laws of the Federation (PLAC) · accessed Oct 2026
- Bills of Exchange Act, Laws of the Federation (PLAC) · accessed Oct 2026
- Lagos State Small Claims Court Practice Directions (Lagos MEPB, Dec 2025 file) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.