ProvidusUnity Bank has emphasized the need for financing structures that support the long-term growth of small and medium-sized enterprises (SMEs) in Nigeria. The bank's Head of Strategy, Ernest Elue, made this call at the second edition of the Go Local Summit in Lagos, which aimed to discuss strategies for strengthening local production and building sustainable enterprises. The summit brought together manufacturers, business leaders, and policymakers to explore ways to improve competitiveness and promote economic growth.
Elue highlighted the importance of moving away from founder-dependent operations and building systems that support sustainable growth and scalability. He stressed that businesses must transition from being person-dependent to system-driven, with structures that ensure corporate governance and viability. This, he believes, is crucial for businesses to multiply revenue and grow in line with customer demand.
One of the major challenges facing SMEs is the asset-liability mismatch in the current financing architecture. Elue noted that businesses often require long-term funding, while available financing is largely short-term, creating significant liquidity pressure. To overcome this, businesses must structure their financing with scalability in mind, ensuring that they can meet their long-term growth ambitions.
Elue also emphasized the importance of financing readiness for businesses seeking investment or access to credit. He stated that financial institutions require clear evidence of cash flow supported by reliable financial records. This enables them to assess the creditworthiness of businesses and provide financing that aligns with their needs.
ProvidusUnity Bank is committed to deepening its impact within Nigeria's SME ecosystem as part of its contribution to economic development. The bank's SME Programme has strengthened the capacity of over 500 SMEs over the past six years, reinforcing its focus on supporting resilient businesses and Nigeria's economic growth.
The Go Local Summit featured exhibitions of locally manufactured products and discussions on the future of Nigerian businesses. The event provided a platform for stakeholders to share ideas and explore strategies for promoting local production and building sustainable enterprises. By supporting SMEs, ProvidusUnity Bank aims to contribute to Nigeria's economic growth and development.
The bank's call for long-term financing for SMEs is a significant step towards addressing the funding mismatch that many businesses face. By providing financing structures that align with SMEs' long-term growth ambitions, ProvidusUnity Bank aims to support the growth and development of sustainable enterprises in Nigeria.
Key points
- ProvidusUnity Bank urges for financing structures that align with SMEs' long-term growth ambitions.
- The bank's SME Programme has strengthened the capacity of over 500 SMEs over the past six years.
- Asset-liability mismatch is a major challenge facing SMEs in Nigeria, with businesses often requiring long-term funding while available financing is largely short-term.
