Reported by: Oahimire Omone Precious | Edited by: Oravbiere Osayomore Promise.
More than eight out of ten Nigerian small and medium-sized enterprises are confident about their business prospects over the next 12 months, with 68 per cent expecting revenue growth, according to the latest Mastercard SME Confidence Index. The findings, released on Thursday, paint a picture of remarkable resilience in Africa's largest economy, where entrepreneurs are betting on digital payments, staff training, and business digitisation to drive expansion even as inflation, financing constraints, and a tough macroeconomic environment continue to test their limits.
The Mastercard SME Confidence Index, a multi-market study covering Eastern Europe, the Middle East and Africa, found that 81 per cent of Nigerian SMEs feel confident about the year ahead, while 68 per cent project revenue growth, the global payments technology company said in an article on Thursday. The confidence is grounded in real progress: 56 per cent of SMEs reported revenue growth in the past year, supported by improved government support (17 per cent) and better infrastructure (16 per cent), according to the report.
“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,” said Gabriel Swanepoel, Division President for Africa at Mastercard. “When every business surveyed agrees that digital payments matter to their growth, it highlights the opportunity to accelerate SME development through digital innovation.” Swanepoel said Mastercard is focused on supporting SMEs with the tools, financing and partnerships they need to scale their businesses with confidence.
Digital payments are increasingly central to business growth, with all respondents agreeing that digital and online payments are vital to expanding their operations. Mobile payment adoption among SMEs stands at 67 per cent, followed by card payments at 45 per cent and online payments at 42 per cent. Most businesses, 57 per cent, now operate across a combination of physical and online channels, the report said.
“Nigerian businesses have never been short on ambition, and what stands out now is how clearly they know what they need to grow,” said Folasade Femi-Lawal, Country Manager for West Africa at Mastercard. “They are investing in their people, embracing digital payments and seeking the capital to expand.” Femi-Lawal said Mastercard is working with partners to provide entrepreneurs with accessible and secure financial tools that can help translate their growth ambitions into long-term success.
Nigerian entrepreneurs identified training and upskilling staff (79 per cent), digitising their businesses (78 per cent), and accepting digital payments across multiple channels (73 per cent) as their top growth priorities. Businesses also identified stronger physical and digital security (60 per cent) and access to mentorship and business advisory support (52 per cent) as critical enablers of business success, reflecting a holistic view of what it takes to build a resilient enterprise.
The ambition to grow is matched by a clear demand for finance. More than two-thirds of SMEs (69 per cent) are seeking credit to expand their businesses, and many (63 per cent) currently use personal cards for business spending because they are quick and convenient to access. This points to a significant opportunity to introduce dedicated commercial cards and structured credit that offer the same ease while unlocking the working capital they need to scale, the report noted. A third of SMEs (34 per cent) obtained external funding in the past year, highlighting the importance of accessible financial solutions as businesses pursue their growth ambitions.
Despite the optimism, challenges persist. Financial concerns (62 per cent), access to credit, and inflation remain key challenges for businesses, according to the report. However, these have done little to dampen the confidence of SMEs, with 81 per cent still confident about the year ahead and 68 per cent projecting further growth. The report underscores the resilience of Nigerian entrepreneurs who are navigating a difficult economic environment while doubling down on digital transformation, skills development, and capital investment to secure their place in an increasingly competitive marketplace.
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