Cashless policy not to eliminate physical cash – CBN

From Olanrewaju Lawal, Ilorin

The Central Bank of Nigeria (CBN) has said that its cash-less policy does not intend to eliminate use of physical cash for payment, but meant to reduce cash transaction.

Speaking at a sensitization exercise on the policy in Ilorin on Tuesday, the Acting Governor of CBN, Dr Sarah Alade, represented by the Principal Manager, Shared Services, Abuja, Mr. Ogunfolami Akinloye, said the policy involves an individual with more than N500,000 to transact business in a day, adding that people in rural areas and other Nigerians with less than N500,000 transaction are not really concerned.

He also said that Kwara state would go cashless from July 1, 2014, just like other remaining 30 states of the federation, adding that six states, including Abuja had commenced the programme since 2012.

The Acting CBN governor, who called for cooperation and support of all Nigerians on the programme, added that the policy would help to reposition the country’s financial system in addressing current challenges faced and transform Nigeria into first world economy.

The CBN boss also said that the sensitization programme became necessary because people needed to know what to do, adding that, “we are also enlarging the financial contact points to include areas such as post offices, motor parks and corner shops.

Also speaking, the Controller CBN, Ilorin, Mr. Monday Olotewo, said his office was more interested as to how the programme itself would be accepted in Kwara state, adding that efforts would be put in place to ensure that everybody knew about the cashless policy.

“Apart from this sensitization programme, there is going to be road show to markets, motor parks and all parts of the state. We want to ensure that everybody in the nooks and crannies of the state gets to know how to make use of this policy, how they can stop carrying cash about.

“You see in places like Kenya, it is established that even cattle sellers can transact business without going to the bank through the phone. What you only need is the account number of the person you want to send money to and before you know it, the transaction is almost completed”, he said.

The CBN executive also said that the benefits of the programme are immense, adding that robbery and cash related crimes, kidnapping, election rigging, revenue leakage, inefficient treasury management and corruption would be reduced, “because you are not carrying cash anywhere”.