THE IMPLICATION OF ISSUANCE OF DUD-CHEQUES

According to corruption report by Anti corruption Transparency International (TI), and through its 2013 Global Corruption Barometer which surveyed resident in 107 countries, Nigeria was ranked 8^th most corrupt country in the world.

This amongst other previous reports made the Apex bank look into the causes of corruption in the country which issuance of dishonored cheque was said to be one. The CBN disclosed that over 167,507 dud cheques with total value of N166 Billion were processed by deposit money banks between January and December 2012.

What is dud/dishonored cheques?

This is the issuance of cheques against unfunded accounts. It is a cheque in print from promising to pay money, that has no value because the person who has written it does not have enough money in their bank account to pay for it.

Which Law governs issuance of dud cheque?

This is the Dishonored cheque offences decree of 1977, which stipulates the framework for ensuring strict eradication of dishonored cheques in financial system.

The central Bank of Nigeria has opted for the prosecution of offenders under the dishonored cheques popularly known as dud-cheques .

The dishonored Cheques Act of 1977 stipulates a two years jail term for anyone who issued  dud-cheque to a third party, this act has not been effective until lately when the CBN governor in person of Mr Lamido Sanusi made fresh measures to eradicate dishonored cheques from the banking system in Nigeria.

All suspects are henceforth to be handed over to the Economic and Financial Crimes Commission to prosecute offenders.

The CBN cannot do this all alone except through the help of all the 25 banks in Nigeria, they have also been directed to intensify their campaign against the practice by pasting posters in the conspicuous area of the banking hall to educate both the issuer  and victims of dishonored cheques and also to inform the EFCC accordingly when the offense is committed.

It is the duty of the EFCC to take the matter up on behalf of victim and the bank.

As part of the effort to address the issuance of dud-cheques, the CBN has directed all banks to identify customers who have issued dud cheques on three instances with effect from July5, 2013 which will later be forwarded to EFCC.

If you have issued dud-cheques at least three times since July 5, 2013 then don’t sleep with both eyes closed.

Note that the issuer of dud-cheque may bag a 7 years jail term if the bill seeking 7 years jail term sent to the National Assembly is passed.

Thank you

Oyenike Alliyu-Adebiyi Llb(hons)Bl