Nigeria’s small and medium enterprises (SMEs) are looking ahead with confidence and are aligned on what will get them there. More than eight out of ten SMEs (81%) feel confident about the next 12 months, and they unanimously agree that digital and online payments are vital in helping grow their businesses. A Mastercard study shows that Nigerian entrepreneurs are channelling that optimism into action, with 68% of SMEs expecting their revenue to grow.
The Mastercard SME Confidence Index is a multi-market study that captures the sentiment, priorities and growth outlook of SMEs across Eastern Europe, the Middle East and Africa.
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Digital momentum is already well underway. Mobile payment adoption by SMEs stands at 67%, followed by card at 45% and online payments at 42% respectively, with most businesses (57%) now operating across a combination of physical and online channels. With cash and bank transfers still widely used, there is a clear runway to bring even more everyday commerce 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.
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A third of SMEs (34%) sought external funding in the past year, highlighting the importance of accessible financial solutions as businesses pursue their growth ambitions.
“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 a strong year
Nigerian SMEs are coming off a year of real progress. More than half of SMEs (56%) reported a revenue increase, supported by improved government support (17%) and better infrastructure (16%). While financial concerns (62%), access to credit and inflation remain key challenges, these have done little to dampen optimism for SMEs, with 81% confident about the year ahead and 68% projecting further growth.
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Investing in people and digital capabilities
Nigerian entrepreneurs are clear about where their next gains will come from. They point to training and upskilling staff for the future (79%), digitizing their business (78%) and accepting digital payments across multiple channels (73%) as the areas with the highest potential for growth. Alongside this, businesses identify stronger physical and digital security (60%) and access to mentorship and business advisory support (52%) critical enablers of business success, reflecting a holistic view of what it takes to build a resilient enterprise.
A strong appetite for growth capital
The ambition to grow is matched by a clear demand for finance. More than two-thirds of SMEs (69%) are seeking credit to expand their business, and many (63%) currently use personal cards for business spending because they are quick and convenient to access. This points to a significant opportunity to introduce to these businesses dedicated commercial cards and structured credit that offer the same ease, while unlocking the working capital they need to scale.
Supporting SMEs through partnerships
Mastercard equips Nigerian SMEs and innovators with the comprehensive tools, financial solutions, and security capabilities required to compete in a digital-first economy.
To drive digital inclusion, Mastercard is pioneering low-cost acceptance innovations. Through solutions such as Tap on Phone, QR Pay-by-Link and SME-in-a-Box, micro-merchants can transform everyday smartphones into secure payment terminals, eliminating the need for expensive hardware. For SMEs scaling internationally, Mastercard Move removes the friction from cross-border trade by facilitating near-real-time remittances.
This ecosystem growth is further accelerated by Start Path and Product Express, Mastercard’s dedicated engagement programs that enable local fintechs to rapidly build and launch customized products, including instant virtual cards and open banking capabilities.
As digital transactions increase, Mastercard ensures ecosystem safety through advanced security infrastructure. The company embeds tokenization into digital payments to protect sensitive data, while the Mastercard Trust Center provides small businesses with free, world-class resources to strengthen their cybersecurity defenses.
The Mastercard SME Confidence Index highlights a community of entrepreneurs eager to expand, and Mastercard remains committed to deploying scalable solutions and capability-building initiatives that foster a more inclusive and dynamic digital economy.
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