Nigeria’s small and medium enterprises (SMEs) are optimistic about the future. Over eight out of ten SMEs, which is 81%, are confident about the next year. They all agree that digital and online payments are essential for their growth. A study by Mastercard shows that Nigerian entrepreneurs are turning this optimism into action, with 68% of SMEs expecting their revenue to rise.
The Mastercard SME Confidence Index is a study that looks at the feelings, priorities, and growth outlook of SMEs in Eastern Europe, the Middle East, and Africa.
Digital payments are already gaining ground. Adoption of mobile payments by SMEs is at 67%. This is followed by card payments at 45% and online payments at 42%. Most businesses, around 57%, now use a mix of physical and online channels. Cash and bank transfers are still common, showing there is a chance to bring more business into the digital economy.
“Nigeria is home to one of the most entrepreneurial and fast-moving SME communities anywhere in the world, and the ambition on display in this research is remarkable. When every business surveyed agrees that digital payments matter to their growth, it highlights the opportunity to accelerate SME development through digital innovation. Our focus is to meet that ambition with the right tools, finance and partnerships so these businesses can scale with confidence,” said Gabriel Swanepoel, division president, Africa, Mastercard.
About a third of SMEs, which is 34%, sought outside funding in the past year. This shows that easy access to financial solutions is crucial for businesses that want to grow.
“Nigerian businesses have never been short on ambition, and what stands out now is how clearly, they know what they need to grow. They are investing in their people, embracing digital payments and seeking the capital to expand. At Mastercard, we are committed to working with our partners to put accessible, secure financial tools within reach of every entrepreneur, so they can turn that ambition into lasting success,” said Folasade Femi-Lawal, country manager, West Africa, Mastercard.
Confidence Built on Progress
Nigerian SMEs have made real progress in the past year. More than half of SMEs, which is 56%, reported an increase in revenue. This growth is supported by better government support (17%) and improved infrastructure (16%). While financial worries (62%), access to credit, and inflation are still challenges, they have not reduced the optimism among SMEs. Eighty-one percent are confident about the coming year, and 68% expect further growth.
Investing in Skills and Digital Tools
Nigerian entrepreneurs know where their growth will come from. They see training and upskilling staff for the future (79%), digitizing their businesses (78%), and accepting digital payments across several channels (73%) as key areas for growth. Additionally, businesses recognize the need for better physical and digital security (60%) and access to mentorship and business advice (52%) as vital for success. This shows a clear understanding of what it takes to build a strong business.
Strong Demand for Growth Capital
The desire to grow goes hand in hand with the need for finance. More than two-thirds of SMEs, which is 69%, are looking for credit to expand their businesses. Many (63%) use personal cards for business spending because they are quick and easy to access. This points to a big chance to offer these businesses dedicated commercial cards and structured credit that provide the same ease while giving them the working capital they need to grow.
Supporting SMEs Through Partnerships
Mastercard provides Nigerian SMEs and innovators with the tools, financial solutions, and security needed to compete in a digital economy.
To promote digital inclusion, Mastercard is working on low-cost acceptance innovations. Through solutions like Tap on Phone, QR Pay-by-Link, and SME-in-a-Box, micro-merchants can turn everyday smartphones into secure payment terminals without needing expensive hardware. For SMEs that want to grow internationally, Mastercard Move makes cross-border trade smoother by helping with quick remittances.
This growth is also driven by Start Path and Product Express, Mastercard’s programs that help local fintechs quickly create and launch customized products, including instant virtual cards and open banking features.
As digital transactions rise, Mastercard is focused on keeping the ecosystem safe with advanced security measures. The company uses tokenization to protect sensitive information in digital payments. The Mastercard Trust Center provides small businesses with free resources to improve their cybersecurity.
The Mastercard SME Confidence Index shows a group of entrepreneurs ready to grow. Mastercard is dedicated to providing scalable solutions and programs that help build a more inclusive and active digital economy.
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