AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
No Nigerian statute sets a fixed number of months after which a cheque expires. The Bills of Exchange Act requires a cheque to be presented within a reasonable time, and treats a demand instrument as overdue once it has been in circulation unreasonably long; banks apply their own stale-cheque period in practice. For the criminal protection of the Dishonoured Cheques Act, the cheque must be presented within three months of its date.
What the law says
A cheque is defined in section 73 of the Bills of Exchange Act as a bill of exchange drawn on a banker payable on demand. The Act does not give it an expiry date. Instead it uses the idea of a reasonable time:
- Section 74(a)
- If a cheque is not presented within a reasonable time of its issue and the drawer suffers actual damage from the delay, the drawer is discharged to the extent of that damage.
- Section 74(b)
- What is reasonable depends on the nature of the instrument, the usage of trade and of bankers, and the facts of the case.
- Section 36(3)
- A bill payable on demand is overdue when it appears on its face to have been in circulation for an unreasonable length of time. Whether that time is unreasonable is a question of fact.
So the law leaves the cut-off to banking practice and the circumstances. That is why answers online vary, and why you should not rely on a number you have heard.
Stale cheques in practice
Banks refuse to pay cheques they consider stale, meaning too old. The period is set by each bank in its account terms and practice; we did not find a CBN rule that fixes one period for every bank as at October 2026. If you hold an old cheque, ask the drawer's bank or your own bank how old a cheque it will accept, before you deposit it. If the bank returns it as stale, the debt it represented does not disappear. You can ask the drawer for a fresh cheque or a transfer.
The three months that matter for dud cheques
There is one fixed period in Nigerian law that every payee should know. The Dishonoured Cheques (Offences) Act makes it an offence to obtain goods, money or credit with a cheque that is dishonoured for lack of funds when presented for payment not later than three months after the date of the cheque. If you present it later and it bounces, the criminal route under that Act is not available, though you can still sue for the debt. See bounced cheques and the law.
Worked example
Example only. Bayo receives a cheque dated 1 March for ₦450,000 from a customer. He forgets it in a drawer and presents it on 15 June. It is returned for insufficient funds. Because 15 June is more than three months after 1 March, the Dishonoured Cheques Act does not apply. He can still claim ₦450,000 as a debt. Had he presented it by 1 June, both routes would have been open, and he would also have had his money a day after deposit if the account was funded.
Other things that end a cheque's life early
- Countermand: the drawer tells their bank to stop payment. Section 75 of the Act ends the bank's authority to pay. See how to stop a cheque.
- Notice of the drawer's death: under the same section, once the bank has notice of the customer's death, its authority to pay the customer's cheques ends. The payee then claims against the estate.
- Non-standard cheque: since 1 August 2020, only cheques meeting the revised Nigerian Cheque Standard are accepted in automated clearing, according to a 2018 Nairametrics report. An old cheque book may be unusable.
- Amount over ₦10 million: paper instruments above the cap are not eligible for clearing. See the clearing cap.
Why the law leaves it open
The Bills of Exchange Act follows the English Act of 1882 closely, and that model never fixed an expiry period for cheques. The idea is that a drawer should not be left exposed indefinitely, while a payee should not lose money because of an arbitrary deadline. In practice, the reasonable time is short for a cheque, which is meant to be paid on demand, compared with other bills. A court looking at a dispute would consider the usual practice of banks, which is why a bank's own stale-cheque policy carries weight.
For a drawer, the practical point is that an uncashed cheque is still a live instruction until it is stopped, goes stale under the bank's practice, or the account is closed. If you issued a cheque that was lost, stop it rather than waiting for it to expire.
What to check first
- Read the date on the cheque, not the date you got it.
- Present it promptly; within three months of its date if there is any doubt about funds.
- If it is old, ask the bank whether it will be treated as stale before depositing.
- If it is refused, ask the drawer for a transfer or a fresh cheque, in writing.
Where Pryme fits
Transfers do not go stale. A business that would rather not hold paper can collect payment through Pryme's bank-transfer checkout or send invoices that customers pay by transfer.
Questions people ask
How many months is a cheque valid in Nigeria?
The Bills of Exchange Act does not set a number of months. A cheque must be presented within a reasonable time, and banks apply their own stale-cheque period; ask your bank.
Can a bank refuse an old cheque?
Yes. Banks refuse cheques they treat as stale under their terms. The debt behind the cheque still stands, so ask the drawer for a new payment.
What is the three-month rule for cheques in Nigeria?
Under the Dishonoured Cheques (Offences) Act, the offence applies only where a cheque is presented within three months of its date and bounces for lack of funds.
Is a post-dated cheque valid?
A post-dated cheque should not be paid before the date written on it. Its age for presentation is counted from that date.
Sources
- Bills of Exchange Act, Laws of the Federation (PLAC) · accessed Oct 2026
- Dishonoured Cheques (Offences) Act, Laws of the Federation (PLAC) · accessed Oct 2026
- Nairametrics: CBN revises the Nigerian Cheque Standard (25 Sep 2018) · 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.