The Central Bank of Nigeria's, CBN, initiative of a cashless economy has been described as capable of ensuring a stable economy stressing that, it will not eliminate cash in circulation or encourage the use of only cards and other instruments.

This was in Ilorin, disclosed by the branch coordinator, Nigeria Inter Bank Settlement Scheme, NIBSS, Owoeye Oluwaseun at a lecture entitled: "Cashless Economy; prospects, Challenges and expectations", which was delivered at the Ilorin Bankers Committee 2011 annual dinner.

According to him, "Cashless economy is only aimed at reducing the amount of physical cash circulating in the economy to encourage more electronic-based transactions. It should be noted that there is no economy in the world that operates with zero cash, rather each strives to rely less on cash. It does not mean you cannot use cash again."

Oluwaseun said that cashless economy would reduce cases of armed robbery and other cash related crimes, adding that it also minimizes associated risk of carrying huge cash for businesses and enhances economic growth for job creation.

He said:  "The policy would reduce revenue leakages thus reducing corruption, electronic notification of all transactions on customer's account would also be made possible."

He therefore called on government, CBN and other relevant stakeholders to encourage traders and retail market operators in the market to embrace the policy and to assure them their money would be safe. In his remarks, Kwara State Governor, Alhaji  Abdulfatah Ahmed, said that the policy has potential to enhance consumer banking and further the development of banking in Nigeria.

Governor Ahmed who was represented by the commissioner for Finance, Ademola Banu, confirmed that his administration recognized private sector as a vital partner in the match towards a greater Kwara state.

He added that the state government would continue to support such policies and other innovations in the private sector which have the potential to benefit the people and businesses at large.

Also speaking at the occasion, the branch controller of CBN in the state, Mr.  Onoriode Olotewo, restated the commitment of CBN towards providing a framework for economic development and achievement of food security in the nation.

He noted that this would be achieved through risk mitigation programmes and schemes, adding that CBN had contributed to the economic development of Kwara state through real sector projects financing.

Olotewo however enjoined banking family to continue to support Governor Ahmed's development programmes, as a good ambassador of the industry, while he commended the support of other external customers such as organized private sector, ministries and agencies in the state.