ProvidusUnity Bank has called for financing structures that align with the long-term growth ambitions of small and medium-sized enterprises (SMEs), warning that the mismatch between businesses’ funding needs and available short-term financing continues to create liquidity pressure.
The bank’s Head of Strategy, Ernest Elue, made the call at the second edition of the Go Local Summit, organised by BusinessDay Media in partnership with ProvidusUnity Bank in Lagos.
The summit, themed “From Market Power to Market Systems,” brought together manufacturers, business leaders, policymakers and other stakeholders to discuss strategies for strengthening local production, improving competitiveness and building sustainable enterprises. It also featured exhibitions of locally manufactured products and discussions on the future of Nigerian businesses.
Speaking during a fireside chat, Elue said businesses needed to move away from founder-dependent operations and build systems capable of supporting sustainable growth and scalability.
“It is important for us as stakeholders to support the ecosystem. A business must move from being person-dependent to system-driven. Do you have systems and structures that speak to viability? It is about building financial structures that ensure corporate governance. That architecture is required to multiply revenue and grow in line with customer demand,” he said.
On business financing, Elue identified asset-liability mismatch as one of the major challenges within the current financing architecture, noting that businesses often require long-term funding while much of the available financing is short-term.
“One of the biggest challenges within the current financing architecture is asset-liability mismatch. Businesses often require long-term funding, while the available financing is largely short-term, creating significant liquidity pressure. Businesses must therefore structure their financing with scalability in mind,” he said.
He also stressed that financing readiness was critical for businesses seeking investment or access to credit, saying financial institutions require clear evidence of cash flow supported by reliable financial records.
He said ProvidusUnity Bank was intentional about deepening its impact within Nigeria’s SME ecosystem as part of its contribution to economic development.
The summit builds on ProvidusUnity Bank’s SME Programme, which the bank said has strengthened the capacity of more than 500 SMEs over the past six years, reinforcing its focus on supporting resilient businesses and Nigeria’s economic growth.
