ProvidusUnity Bank urges SMEs to build system-driven structures
Providus Bank has urged SMEs to build system-driven structures for long-term viability, highlighting the need for corporate governance and financial discip Read More: https://punchng.com/providusunity-bank-urges-smes-to-build-system-driven-structures/
Nigerian bank ProvidusUnity Bank has pledged its support to small and medium-sized enterprises (SMEs) and their role in driving the nation's economic growth. This commitment is demonstrated through a collaboration with BusinessDay Media for the second Go Local Summit, which focuses on the transition from market power to market systems. The event gathered industry leaders and stakeholders to discuss strategies for improving domestic production and fostering sustainable commercial enterprises.
During the summit, ProvidusUnity Bank's Head of Strategy, Ernest Elue, stressed the importance of moving away from owner-dependent business models to system-driven structures for long-term success and scalability. He emphasized the need for financial structures that ensure corporate governance and support revenue growth. Elue also highlighted the mismatch between the available short-term financing and the long-term funding requirements of businesses, which can create liquidity issues.
Elue explained that one of the main challenges in the current financing system is an asset-liability mismatch, where businesses need long-term funding, but the available financing is mainly short-term, causing liquidity pressure. To overcome this, businesses should structure their financing with scalability in mind. He also stressed that strong financial discipline, transparent operations, and reliable financial records are crucial for investment readiness and credit accessibility.
The bank's dedication to supporting SMEs as a key component of its contribution to Nigeria's economic stability was reinforced through its SME Programme, which has supported over 500 small businesses in the past six years. Elue stated that the bank aims to be the leading SME bank in Nigeria by providing access to finance, capacity building, markets, and tailored products and services.
By focusing on these four pillars, ProvidusUnity Bank hopes to foster resilient enterprises and contribute to the nation's macroeconomic stability.
Written by urgent.news from Punch Nigeria's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
