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The short answer
A naira cheque is built for Nigeria's own clearing system, which clears cheques electronically between Nigerian banks; banks abroad that take foreign cheques at all do so by negotiation or collection, and Lloyds, for one, warns it may not accept cheques in every currency. In practice a naira cheque is best paid into a Nigerian account, and the payer should ideally send a transfer instead.
How a Nigerian cheque clears at home
Inside Nigeria, cheques clear electronically: the paying bank receives an image of the cheque rather than the paper. The CBN's 2011 exposure draft guidelines on cheque truncation describe clearing on a T+1 basis, with value on the morning of T+2, between participating Nigerian banks. That system connects Nigerian banks to each other; a bank in London, Houston or Toronto is not part of it. So a naira cheque has no direct route into a foreign account.
How banks abroad handle foreign cheques
A bank outside Nigeria can only deal with a foreign cheque by sending it back to the country it was drawn on. Lloyds Bank's page on receiving money from abroad describes the two methods UK banks use:
- Negotiation
- The bank credits you, usually by the sixth working day after it receives the cheque, converting at its standard rate on the processing day.
- Collection
- The bank sends the cheque to the paying bank, possibly through an agent, and credits you only when it is paid, at the rate on that day. Timing depends on the paying bank and country.
Lloyds says it uses negotiation by default and collection when negotiation is not possible, that it "may not be able to accept cheques in all foreign currencies", and that the value shown when you pay in may change by the time the cheque is processed. Its standard conversion margin for foreign currency received ranges from 3.55% on amounts up to £10,000 to 1.50% at £250,000 and above (as at October 2026).
Why naira cheques are rarely accepted
- A bank abroad needs a correspondent route to present the cheque in Nigeria, and many do not have one for naira.
- A retail bank abroad may not quote a naira rate at all, leaving it nothing to negotiate the cheque at.
- Collection can take weeks, and the fees and agent charges may be large against the cheque's value.
- If the bank negotiates the cheque, it is crediting you before it knows the cheque will be paid, which is a risk many banks decline for lesser-used currencies.
We found no UK, US or Canadian bank page among those we checked that lists naira among the currencies it accepts for cheques. Ask your own bank before posting a cheque abroad, and do not assume a credit on your account is final until the bank confirms the cheque was paid.
A worked example
Example: Emeka in Bristol is given a naira cheque that his bank values at £250 on the day it is processed, and his bank agrees to negotiate it. If the bank applies a 3.55% conversion margin, as Lloyds publishes for amounts up to £10,000, the margin alone costs about £8.88 (3.55% of £250), before any cheque handling or agent fee. If the bank instead sends the cheque for collection, he waits until the Nigerian bank pays, and the pound value is set on that later date. In both cases a naira transfer to an account in his own name would have avoided the margin on a cheque that may still be returned unpaid.
If you have already been given a naira cheque
- Check the date, and ask the paying bank how long it will honour the cheque; we could not find a published CBN rule on cheque validity.
- Pay it into a Nigerian account in your name, if you have one. Some banks accept deposits by a third party on your behalf.
- If you have no account, ask the drawer to cancel the cheque and send a transfer instead.
- Keep a copy of both sides of the cheque until the money has cleared.
A cheque that bounces has legal weight in Nigeria. The Dishonoured Cheques (Offences) Act makes it an offence to obtain credit or property with a cheque that is dishonoured for lack of funds when presented within three months of its date. That protects you as the payee, but enforcing it from abroad is slow; a transfer avoids the problem.
Better ways to be paid from Nigeria
- A naira transfer to your own Nigerian account, which you convert when you choose.
- A transfer to a domiciliary account, where the payer holds foreign currency.
- A licensed money transfer provider for sending abroad.
- For larger sums, see receiving money from Nigeria while living abroad and whether naira can be sent to a foreign account.
Where Pryme fits
A Pryme Personal Account gives you a naira account number in your own name, opened from abroad, so anyone in Nigeria can pay you by transfer instead of cheque. The money stays in naira until you convert it with Swap. See the multicurrency account.
Questions people ask
Can I pay a Nigerian cheque into my UK bank account?
Possibly, but rarely. UK banks handle foreign cheques by negotiation or collection, and Lloyds says it may not accept cheques in all foreign currencies. Ask your bank first.
How long does a foreign cheque take to clear?
Lloyds says negotiation usually credits by the sixth working day; collection depends on the paying bank and country.
What should I do with a naira cheque if I live abroad?
Pay it into a Nigerian account in your name, or ask the payer to cancel it and send a transfer.
Is issuing a bad cheque a crime in Nigeria?
Yes. The Dishonoured Cheques (Offences) Act makes it an offence where the cheque is presented within three months and dishonoured for lack of funds.
Sources
- Lloyds Bank: Receive money from outside the UK or in a foreign currency · accessed Oct 2026
- CBN: Guidelines for Cheque Truncation in Nigeria (exposure draft, Oct 2011) · accessed Oct 2026
- PLAC Laws of Nigeria: Dishonoured Cheques (Offences) Act · 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.