Nigerian Small Businesses Express Optimism for the Coming Year, with 81% Forecasting a Positive Outlook Amid Rising Expansion Goals

Nigerian SMEs are unanimous in their belief that digital and online payments are crucial for business growth, with 100% of them acknowledging their importance.

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A significant majority of SMEs, 79%, have identified training and upskilling staff as a top priority for growth, closely followed by digitizing their business, at 78%.

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More than two-thirds of SMEs, 69%, are seeking credit to expand their business, highlighting the need for accessible financial solutions to support their growth ambitions.

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Nigerian SMEs are optimistic about the future, with 81% feeling confident about the next 12 months, and 68% expecting their revenue to grow, according to a Mastercard study.

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The Mastercard SME Confidence Index, a multi-market study, captures the sentiment, priorities, and growth outlook of SMEs across Eastern Europe, the Middle East, and Africa, providing valuable insights into the needs of these businesses.

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Digital adoption is already gaining momentum, with 67% of SMEs using mobile payments, 45% using cards, and 42% using online payments, and most businesses, 57%, operating across both physical and online channels.

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There is still a significant opportunity to bring more everyday commerce into the digital economy, as cash and bank transfers remain widely used.

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According to Gabriel Swanepoel, division president, Africa, Mastercard, Nigeria has one of the most entrepreneurial and fast-moving SME communities in the world, with a remarkable ambition for growth, and Mastercard is committed to providing the right tools, finance, and partnerships to support these businesses.

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A third of SMEs, 34%, sought external funding in the past year, highlighting the importance of accessible financial solutions for businesses pursuing their growth ambitions.

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Folasade Femi-Lawal, country manager, West Africa, Mastercard, noted that Nigerian businesses are clear about what they need to grow, and Mastercard is committed to working with its partners to provide accessible, secure financial tools to support their ambitions.

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Nigerian SMEs have made significant progress in the past year, with more than half, 56%, reporting a revenue increase, supported by improved government support, 17%, and better infrastructure, 16%.

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Despite financial concerns, 62%, access to credit, and inflation remaining key challenges, Nigerian SMEs remain optimistic, with 81% confident about the year ahead and 68% projecting further growth.

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Nigerian entrepreneurs believe that investing in people and digital capabilities is crucial for growth, with 79% prioritizing training and upskilling staff, 78% focusing on digitizing their business, and 73% embracing digital payments across multiple channels.

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Businesses also identify stronger physical and digital security, 60%, and access to mentorship and business advisory support, 52%, as critical enablers of business success.

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There is a strong appetite for growth capital, with more than two-thirds of SMEs, 69%, seeking credit to expand their business, and many, 63%, using personal cards for business spending due to their convenience.

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Mastercard is supporting Nigerian SMEs through partnerships, providing comprehensive tools, financial solutions, and security capabilities to compete in a digital-first economy.

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Mastercard is pioneering low-cost acceptance innovations, such as Tap on Phone, QR Pay-by-Link, and SME-in-a-Box, to drive digital inclusion and support micro-merchants.

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The company is also facilitating near-real-time remittances through Mastercard Move, and enabling local fintechs to rapidly build and launch customized products through Start Path and Product Express.

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Mastercard ensures ecosystem safety through advanced security infrastructure, including tokenization and the Mastercard Trust Center, which provides small businesses with free, world-class resources to strengthen their cybersecurity defenses.

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Mastercard powers economies and empowers people in 200+ countries and territories worldwide, building a resilient economy where everyone can prosper, and supporting a wide range of digital payments choices.