Erudite economist, Prof. Pat Utomi, has made a strong case for the entrenchment of cashless banking in Nigeria, saying that it has obvious advantages over cash-based transactions.

Delivering the 2012 Advertising Lecture yesterday at Federal Palace Hotel, Victoria Island, Lagos, Utomi (showed in photo) listed three major disadvantages of cash-based transactions, viz:

•High cost of cash management negatively impacts the economy. Even though the Central Bank of Nigeria (CBN) pays for the printing of naira notes, the cost is eventually passed on to the economy.

•Diseases could be contracted through handling cash since each naira note is touched by so many people, some of whom may be suffering from communicable diseases.

•Money laundering is easier through cash as “cashless banking leaves a trail in this digital age.”

Utomi therefore advocated cashless banking since it reduces the cost of cash management, reduces the risk of contracting diseases and helps fight corruption.

News Express reports that under the cashless policy introduced last January by the CBN, Nigerians are discouraged from carrying a lot of cash, thus reducing the cost of currency management and also enhancing security by reducing the chances of one being attacked by robbers while moving cash. The policy rather encourages people to use a variety of non-cash banking options such as ATM, cheques, bank drafts, inter-bank transfers, credit and debit cards, internet and telephone banking.

Presently in Lagos, an individual cannot withdraw more than half a million naira in cash in a day while a corporate entity cannot withdraw more than N3 million in a day. The policy is scheduled to be extended to other parts of the country from next January.

Utomi, who is a Director of Lagos Business School, described people’s reluctance to embrace cashless banking as normal “since man by nature does not easily embrace change.”

This, he said, is where advertisers come in since it is their responsibility to market values. He, therefore, charged advertisers to find ways to convince Nigerians on the benefits of cashless banking.

Utomi, who is also a politician in addition to having a strong media cum advertising background, spoke on “Marketing Communications Challenges of Nigeria’s Cashless Economy” – the theme of this year’s Advertising Day Lecture organised by the Advertising Practitioners Council of Nigeria (APCON).

The well-attended event was graced by several distinguished personalities, among them APCON Chairman Mr. Lolu Akinwunmi and the industry regulator’s Registrar/CEO, Alhaji Garba Bello Kankarofi. The event also featured the induction of new fellows of the advertising profession as well as a night party tagged Night of Fellows.