How to cash a cheque in Nigeria

Posted by Felix Okoli on Tuesday May 27, 2014 at 10:34:42:

Banks in Nigeria issue cheque booklets to their corporate accounts and current account holders. A Cheque can be used as a form of payment order issued on behalf of a beneficiary by the account holder or owner. and it's normally signed. The beneficiary is paid the stipulated amount on the cheque upon its presentation in a bank.

For a cheque to be cashed in a bank the account holder must have enough balance in his bank account, he must enter his information correctly on the cheque especially his signature, as a cheque can be rejected due to wrong signature, the third party must present a valid ID card. With all these in place, let’s move further to explain how you can cash a cheque in Nigeria.

When someone issues a cheque to you, you must go the bank to cash it within the validity period for it not to turn to a stale cheque. Walk into the bank operated by the issuer of the cheque, present the cheque to the cashier. She will ask for a valid ID card as the instruction on most cheques is that the third party should be paid at the presentation of the ID card. The cashier will photocopy your ID card and ask you to write your name and sign twice at the back of the cheque. The account holder’s bank account will be accessed by the cashier to ensure that they correspond with the information on the cheque, secondly to know if he has sufficient balance to make the payment.

The third party is paid the stipulated amount after the confirmation. An account holder can also issue cheques in his name and use it to cash out over the counter.