How ProvidusUnity Bank Is driving economic growth, one SME at a time

Six years ago, ProvidusUnity Bank launched a capacity-building programme for Small and Medium Enterprises (SMEs) in partnership with the Enterprise Development Centre (EDC) of Pan-Atlantic University. Six cohorts later, the programme has grown beyond Lagos to Abuja and Port Harcourt, with more than 300 SMEs benefiting from the initiative.

What has distinguished the programme is its recognition that access to funding alone is not enough to build sustainable businesses. Many SMEs need something more fundamental such as knowledge, systems and structures to become stronger, more efficient and ultimately more bankable.

The ProvidusUnity Bank SME programme addresses this gap through a hybrid model that runs for more than three months, combining intensive training, mentorship, networking and, ultimately, access to funding.

Its curriculum focuses on some of the areas most critical to building sustainable businesses, including business strategy, operational efficiency, financial record keeping, sustainability, risk management and growth planning.

This focus is particularly relevant in Nigeria, where SMEs represent a significant part of the economy. Data from the Development Bank of Nigeria puts the country’s MSME population at nearly 40 million, contributing 46.32 per cent to GDP and accounting for 87.9 per cent of employment. Yet, access to finance remains a major constraint, with the International Finance Corporation estimating Nigeria’s MSME financing gap at approximately $32.2 billion.

The challenge is not simply a shortage of capital. Many businesses also lack the structures and systems required to attract and effectively manage institutional financing.

For instance, PwC’s survey found that 96.2 per cent of MSMEs were sole proprietorships, a structure that can create challenges around succession, governance, accountability and the separation of personal and business finances. Meanwhile, fewer than five per cent of MSMEs have access to bank credit, highlighting the scale of the financing challenge.

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This is where the ProvidusUnity Bank model becomes particularly relevant. Rather than viewing SME financing in isolation, the programme seeks to address some of the capacity gaps that prevent businesses from becoming investment- and finance-ready.

The programme itself has evolved over the years to respond to the changing needs of participating businesses. The first cohort focused on helping struggling businesses find their footing, pivot and build resilience. The second placed greater emphasis on long-term strategy and profitability, while subsequent cohorts broadened eligibility to accommodate more high-potential businesses.

By the fifth cohort, demand for the programme had grown significantly, prompting its expansion beyond Lagos. The sixth cohort is currently underway across Lagos, Abuja and Port Harcourt.

For beneficiaries, the impact goes beyond the classroom.

Uju Okeke, founder and CEO of Ava Collections and a participant in the third cohort, described the programme as one of the most impactful capacity-building initiatives she has undertaken since starting her business more than a decade ago. According to her, the lessons around building sustainable structures helped her consolidate the gains she had already made and provided a clearer path for future growth.

Olatunji Alaaki, founder and CEO of Jeun, similarly said the programme exposed him to the knowledge required to strengthen corporate governance, structure, marketing and branding, while preparing his business for scale.

For Tunji Onakoya, founder and CEO of AutoClinic NG and a participant in the current cohort, the programme addresses a critical gap in Nigeria’s entrepreneurship ecosystem. “This is something that is needed in the entrepreneurship ecosystem in Nigeria, and someone has to do it. ProvidusUnity Bank is doing it,” he said.

Facilitator Adegboyega Adebajo also believes the programme is changing how participants approach their businesses. He noted that it has helped beneficiaries identify gaps in their businesses, understand the importance of structure and rethink how they approach growth.

“The success they make in the long term will be much more definitive than any competition they can win in the short term,” he said.

For Ernest Elue, Head of Business Development at ProvidusUnity Bank and coordinator of the programme, the objective goes beyond training individual entrepreneurs.

“Our ambition is to build a credible platform that gives SMEs the knowledge, structure and support they need to become stronger and more sustainable businesses,” he said. “When we help entrepreneurs build businesses that can survive, create jobs and scale, we are not only supporting individual businesses; we are contributing to the broader growth of the Nigerian economy.”

That is ultimately the bigger proposition behind the programme. Nigeria does not only need more entrepreneurs; it needs more businesses that can survive, formalise, employ people, access capital and scale.

With millions of MSMEs already carrying a significant share of the country’s economic activity, closing the capacity gap could unlock enormous value. By investing in the capabilities behind the businesses, not just the businesses themselves, ProvidusUnity Bank is positioning its SME programme as a practical contribution to building the stronger enterprises that Nigeria’s next phase of economic growth will require.