CCIBN supports cashless economy, train stakeholders

To support the cashless economy initiative of the Central Bank of Nigeria (CBN), the Committee of Chief Inspectors of Banks in Nigeria (CCIBN), organised a three-day training programme for banks, discount houses, external auditors and law enforcement agencies in Lagos. The training programme which held from November 16 -18, was organised to adequately acquaint participants with the dynamics of the cashless economy initiative, ahead of its commencement in pilot phase in Lagos State by January 2012.  

Abas Alhasssan, 2^nd Vice Chairman, Committee of Chief Inspectors of Banks (CCIBN), said the cashless economy initiative is a grey area in this part of the world. “It is however a welcome development, making it imperative for Chief Inspectors of Banks to  equip themselves, as well as other stakeholders adequately, for the challenges ahead of the pilot scheme in Lagos State. At the end of the three days training, we expect participants to have very good understanding of cashless payments, regulatory perspectives, frauds and internal control requirements, among other issues.”

Speaking on the benefits of the cashless economy initiative, Chidi Umeano, Shared Services Office, Central Bank of Nigeria (CBN)said, it aligns with the Shared Services Programme of the CBN, aimed at achieving 30 percent reduction in the cost being passed by banks to customers. “The cashless economy initiative has tremendous benefits for the people and the economy. It would greatly reduce the cost of cash, with available statistics showing that the Central Bank and the banks would have spent over N200bn on cash management by 2012. This could be ploughed into infrastructure development.”

He added: “It would also mean that majority of Nigerians would stop subsidizing the cash handling cost of heavy cash users. Available statistics show that 10 percent of branch transactions in Nigeria are above N150,000, but they make up about 77 percent of the value of cash transactions in the country’s financial system.

It would be recalled that the Central Bank of Nigeria (CBN) in a circular released early this year to all banks, Cash-in-Transit (CIT) operating firms, payments system service providers, as well as money card acquirers, issuers and processors increased penalties for cash transactions by individual and corporate bank account holders to help reduce the high usage of cash as well as moderate the cost of cash management among operators in the country’s financial system.

Since the release of the circular, the CBN has embarked on public enlightenment through seminars and news media. The three-day training programme by CCIBN was to support of the initiative through capacity building for stakeholders.