Providus Bank Reaffirms Support for Small and Medium Enterprises

Providus Bank has reiterated its strong commitment to supporting small and medium-sized enterprises (SMEs) across Nigeria, reaffirming that the sector remains central to its business strategy. During its annual SME forum held in Lagos, the bank emphasised its intention to deepen financial and advisory services geared at nurturing MSMEs and facilitating their growth in a challenging economic environment.

The bank’s executive director of business banking, Mrs. Ifeoma Okoro, underscored the vital role SMEs play in national development, citing their contribution to job creation, innovation, and domestic production. “At Providus, we view SMEs as the heartbeat of Nigeria’s economy. Ensuring they have access to flexible financing and business development tools is not merely philanthropic—it is strategic,” she declared.

Providus Bank outlined its expanded offering, which now includes tailored loan products like working capital loans, trade financing, equipment purchase facilities, and invoice discounting solutions. The bank has also extended advisory support covering business structuring, financial record-keeping, cost control, and digital marketing. Clients are encouraged to participate in capacity‑building workshops and mentorship programmes that help them become bankable and marketplace-ready.

Crucially, Providus has partnered with trade and artisan associations in states such as Lagos, Ogun, Kaduna, and Kano. Through these collaborations, the bank aims to target underserved segments, such as women-led enterprises, agri-processing units, fashion microbrands, and tech-enabled startups. Outreach teams visit markets and craft clusters to register and onboard micro-entrepreneurs who typically operate outside formal banking channels.

In line with its inclusive approach, the bank has extended its financial franchise model to boost branchless banking and digital deployments—enabling rural and peri-urban MSMEs to access services via agency points, mobile apps, and USSD platforms. This model allows business owners without traditional bank branches nearby to apply for loans, receive funds, and manage accounts directly through mobile devices or local agents.

Importantly, Providus Bank has reduced loan collateral requirements for qualifying SMEs by allowing movable assets, inventory, and third-party guarantees to serve in place of real estate. This shift aligns with industry-wide calls for credit access reforms that recognise the realities and constraints of micro and small businesses in Nigeria.

Since launching its enhanced SME strategy in early 2024, Providus reports it has disbursed over ₦20 billion to more than 7,500 SMEs—many of which have recorded increased turnover, expanded operations, or made new hires. In some cases, loans have helped clients transition from sole proprietorship to registered limited enterprises, enabling access to formal trade networks and export opportunities.

Feedback from beneficiaries indicates high satisfaction. Business owners cited positive experiences around timely loan disbursement, flexible repayment plans, and responsive customer service. Many praised the digital onboarding process, which cuts the typical bank credit cycle from weeks to just a few days. One Lagos-based female entrepreneur noted that she was able to purchase industrial sewing machines and train apprentices within two weeks of receiving Providus credit.

Despite the success, the bank acknowledges obstacles. High inflation and monetary tightening continue to raise lending costs and affect repayment capacities. Regulatory changes around interest cap repricing and credit bureau reporting have also required Providus to adapt swiftly to maintain compliance. Still, the bank remains confident that demand from underserved business segments will continue to grow, provided credit is accessible and reasonably priced.

To better manage risk, the bank has integrated credit-scoring technology that uses alternative data, such as sales turnover, mobile wallet patterns, and digital transaction histories. This makes it possible to onboard clients without formal financial statements. Early portfolios show low non-performing loan ratios under the SME products, suggesting the approach is scalable and sustainable.

Providus Bank is now preparing to enhance its SME initiative by launching sector-specific value-chain financing programmes tailored to agriculture, creative industries, and logistics. These will involve collaboration with anchor firms and warehouses to enable inventory-backed lending, aggregated market access, and export readiness. The bank is also exploring partnerships with fintech platforms to integrate embedded finance solutions—allowing clients to transact directly via e-commerce or payment apps.

Looking ahead, Providus plans to increase its SME client base to 15,000 by the end of 2026, targeting underserved clusters in cities like Port Harcourt, Ibadan, Benin and emerging trade centres. The bank has committed to regularly organising regional business clinics that blend financial access, advisory, healthcare plans for micropreneurs, and financial literacy initiatives.

Experts and industry watchers have commended Providus Bank’s model as aligned with Nigeria’s broader goal of strengthening MSME finance and reducing informal dependence. They point out that bridging the gap between formal financing and small businesses is critical to unlocking productivity gains, enhancing inclusive growth, and boosting employment. The bank’s approach—which combines product innovation, digital inclusion, and tailored client engagement—is seen as promising for the future of SME banking.

 

In summary, by reaffirming its commitment to SME empowerment, expanding access to flexible credit, and integrating business advisory with digital financial tools, Providus Bank is positioning itself as a leading partner for Nigerian entrepreneurs. Through sustained effort and strategic collaborations, the bank aims not only to serve small businesses but also to help transform them into engines of economic resilience and innovation.