The Central Bank of Nigeria (CBN) recently urged all microfinance institutions in the country to imbibe commercial banking.

Deputy Governor (Operations) of the CBN, Mr. Tunde Lemo, made the call at a workshop on Microfinance, Small and Medium Enterprises (MSME) Nigeria Project held  recently in Lagos.

"The Microfinance Institutions, Small and Medium Enterprises Nigeria Project has set new ways to improve the microfinance sector in Nigeria through the adoption of commercial microfinance," he said.

Lemo, who was represented by Mr. Joe Alegieuno, therefore, charged all enterprises in the microfinance sector to embrace commercial banking.

He said that the immediate acceptance of commercial microfinance would expand outreaches for the banks to accumulate capital beyond their current levels.

"Commercial microfinance will also help to combat future challenges that may impose threats to the microfinance institutions," he added.

He also said that commercial microfinance would also provide a means of sourcing funds through aggressive deposit techniques that would absorb shocks that might emerge from any huge demand for microfinance services.

"The recent crisis in the financial sector has placed a demand on the microfinance sector to increase profit-making and profit plough back.

"Evidence suggests that all over the world, the ease, appropriateness and timeliness will enable commercial microfinance to record aggressive deposit mobilisation," Lemo said.

According to him, microfinance institutions must, therefore, restore a high level of confidence in the economy through transparency and the use of other strategies to win customers.

"Confidentiality, security, convenience, liquidity, appropriateness of services and friendliness in the microfinance institutions, returns and appropriate access to loans are essential for the success of commercial micro-financing.

"Microfinance institutions must, therefore, continue to strive to move to the next level through capacity building and collaboration with relevant stakeholders," Lemo added.

The MSME project leader, Mr. Emeka Ille, said that commercial microfinancing could develop the Nigerian economy through the mobilisation of savings, which could be ploughed into other sectors.

"This initiative is coming at a time that it could make a positive impact on the national economy.

"In order to meet the goals of Vision 20: 2020, there should be diversification from oil and agriculture, to the small-scale industries that are coming up," he said.