AI agents for business finance: what they can and can't do
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The short answer
Under the Nigerian Bankers' Clearing System rules effective 1 September 2018, a cheque or other paper instrument presented for clearing may not exceed ₦10 million in face value, unless the CBN reviews the cap. Larger payments should go by electronic transfer or be split into separate instruments where the bank allows. Paper instruments that clear are deemed paid by 10pm on the next working day.
The ₦10 million cap
Nigeria's clearing house rules limit how large a single paper instrument can be. BusinessDay reported that under the revised Nigerian Bankers' Clearing System (NBCS) rules, which the CBN set to take effect on 1 September 2018, eligible paper-based instruments presented for clearing "shall not exceed N10 million per face value, or as may be reviewed by the CBN". The cap is per instrument, not per day or per customer.
The rule applies to clearing, which is how a cheque drawn on one bank is paid into an account at another. A cheque that goes through the clearing system with a face value above the cap is not eligible. Whether a bank will pay a large cheque drawn on itself over the counter, without clearing, is a matter for that bank's own rules; ask the branch.
Why the cap exists
The CBN has spent more than a decade moving high-value payments from paper to electronic channels, which settle faster and leave a cleaner record. A cap on paper instruments pushes large-value payments to transfers, where the funds move in minutes rather than a day, and the risk of forged or altered cheques falls.
How cheque clearing works now
- Paper instruments deposited with a member bank are deemed paid by 10pm on the next working day (T+1), under the 2018 rules as reported. Exceptions include a return by the paying bank, a special caution, or a request by the paying bank to extend the value date.
- Electronic instruments are presented the same day if the instruction arrives at least two hours before the session closes, unless the service agreement says otherwise.
- Cheques must meet the revised Nigerian Cheque Standard. Nairametrics reported in September 2018 that from 1 August 2020 only cheques conforming to the new standard would be accepted in automated clearing.
For the full clearing process, including returns, see cheque clearing in Nigeria.
Paying more than ₦10 million
| Option | How it works | Points to check |
|---|---|---|
| Electronic transfer from internet or mobile banking | Moves in minutes through the interbank system | Your daily transfer limit; corporate accounts may need a token or second approver |
| Transfer instruction at the branch | The bank sends the transfer on your written instruction | Branch cut-off times; ID and signature verification |
| Several cheques, each within the cap | Each instrument stays at or below ₦10 million | Banks and payees may refuse a split; it can look like avoiding the rule |
| Bank draft or manager's cheque | A bank's own paper instrument | Also a paper instrument for clearing, so the same cap applies as we read the rules |
Daily transfer limits on retail channels are often well below ₦10 million. GTBank's 737 page, for example, sets a daily USSD transfer limit of ₦1,000,000. For a property payment or a business purchase, arrange the limit with your bank in advance, or ask it to send the transfer from the branch.
Worked example
Example only. Ada is buying land for ₦18 million and the seller asks for a cheque. A single ₦18 million cheque would exceed the cap. She can ask her bank to send ₦18 million by transfer on a signed instruction, which also gives the seller cleared funds the same day. If she insists on paper, she would need two instruments of ₦9 million each, which the seller must agree to accept, and each would take until the next working day to clear. Splitting into cheques adds a day and the risk of one being returned; it does not make the payment more secure.
When a large cheque is returned
A cheque can be returned for reasons that have nothing to do with the cap: insufficient funds, a signature that does not match the mandate, an alteration on the face, a stale date, or a stop instruction from the drawer. For high-value cheques, banks often call the drawer to confirm before paying, especially where the amount is unusual for the account. That call is a fraud control, and a cheque can be held while the bank reaches the drawer. If you are expecting a large cheque, ask the drawer to tell their bank it is coming, so confirmation does not delay the payment.
A returned cheque for lack of funds can also have legal consequences for the drawer; see the Dishonoured Cheques Act.
What to check first
- Ask the payee whether they will accept a transfer instead of a cheque.
- Check your daily transfer limit on each channel and ask the bank to raise it or process the payment at the branch.
- For property, get the account name confirmed by the bank before sending; name enquiry shows it on most channels.
- Keep the transfer receipt and the bank's confirmation as proof of payment.
Where Pryme fits
Pryme accounts send by transfer, with the recipient's name shown and the fee on its own line before you approve; see send money. Businesses collecting large payments can use invoicing with transfer-based payment so the funds arrive cleared.
Questions people ask
What is the maximum amount for a cheque in Nigeria?
₦10 million per instrument for cheques presented through clearing, under the NBCS rules effective 1 September 2018, unless the CBN reviews the cap.
Can I issue a cheque above ₦10 million?
A cheque above ₦10 million is not eligible for clearing. Use an electronic transfer for larger amounts; ask your bank about any over-the-counter exceptions.
How long does a cheque take to clear in Nigeria?
Under the 2018 rules, a paper instrument deposited with a bank is deemed paid by 10pm on the next working day, unless it is returned or a special caution applies.
Does the ₦10 million cap apply to bank drafts?
As we read the 2018 rules, the cap applies to eligible paper instruments presented for clearing, which includes drafts. Confirm with your bank.
Sources
- BusinessDay: CBN gives September 1 for revised clearing rule implementation (2018) · accessed Oct 2026
- Nairametrics: CBN revises the Nigerian Cheque Standard (25 Sep 2018) · accessed Oct 2026
- GTBank 737: Features · accessed Oct 2026
- Bills of Exchange Act, Laws of the Federation (PLAC) · 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.