The Central Bank of Nigeria's (CBN) initiative of a cashless economy will minimise associated risk of carrying huge cash for businesses and enhances economic growth for job creation.

The assertion was made by the branch coordinator of the Nigeria Inter Bank Settlement Scheme (NIBSS), Ilorin, Mr. Owoeye Oluwaseun.

Oluwaseun, who stated this in a lecture, titled, 'Cashless Economy; Prospects, Challenges and Expectations', delivered at the Ilorin Bankers Committee 2011 Annual Award, also said that it would not eliminate cash in circulation as believed in certain quarters in the country.

He said that cashless economy only aimed at reducing the amount of physical cash circulating in the economy to encourage more electronic-based transactions.

According to him, "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 and it does not mean you cannot use cash again."

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

Oluwaseun also said that it reduced revenue leakages thus reducing corruption, adding that electronic notification of all transactions on customer's account is made possible.

He called on government, CBN, and other relevant stakeholders to encourage traders and retail market operators in the market to embrace the policy and assure them that their money would be saved.

In his address, Kwara State Governor, Alhaji Abdulfatah Ahmed, who was represented by the state commissioner for Finance, Mr. Ademola Banu, said the policy has the potential to enhance consumer banking and further the development of banking in Nigeria.

The governor, who said his administration recognised private sector as a vital partner in the march towards a greater Kwara state, added that it would continue to support such policies and other innovations in the private sector, which has the potential to benefit the people and businesses at large.

In his speech at the event, the branch controller of the CBN, Mr. Onoriode Olotewo, restated the bank's commitment to provide framework for economic development and achievement of the food security of the FG through risk mitigation programmes and schemes.

He added the bank had contributed to the economic development of Kwara state through real sector projects financing via the CBN products and schemes.

He enjoined the banking family to support Governor Ahmed's development programmes, as a good ambassador of the industry, while he commended the support of other external customers like organised private sector, ministries and agencies in the area.