The high incidence of returned cheques in the Nigerian payments system has become a source of great concern to all stakeholders. The habit of some bank customers issuing cheques with the full knowledge that they do not have sufficient funds in their accounts (i.e. kitting) has become an everyday occurrence.

For example, in March 2004, 545,904 instruments were processed in the Lagos Clearing House. 
Out of this number, about 15,785 or 2.90% were returned unpaid. 75% of such returned cheques were due to insufficient funds in the customers’ account.

To curb this ugly trend, the Sub-Committee has proposed that, aside from the review and full enforcement of the dishonoured Cheques (Offences) Act of 1977, banks should close the accounts of fraudulent cheques offenders, blacklist them, and publish their offences and identities on this website. 

This would act as deterrent to the growing number of cheque offenders in the system, while protecting the banking sector from the activities of these cheque fraudsters. 

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