A Mastercard study has revealed that Nigeria's small and medium enterprises (SMEs) are highly optimistic about the future. More than eight out of ten SMEs (81%) expressed confidence about the next 12 months, with a unanimous agreement that digital and online payments are crucial for business growth. 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.
Digital Adoption on the Rise
Digital momentum is already well underway among Nigerian SMEs. Mobile payment adoption stands at 67%, followed by card payments at 45% and online payments at 42%. Most businesses (57%) now operate across a combination of physical and online channels. Despite the widespread use of cash and bank transfers, there is a clear opportunity to bring more everyday commerce into the digital economy.
Gabriel Swanepoel, division president for Africa at Mastercard, noted: "Nigeria is home to one of the most entrepreneurial and fast-moving SME communities anywhere in the world. When every business surveyed agrees that digital payments matter to their growth, it highlights the opportunity to accelerate SME development through digital innovation."
Funding and Growth Ambitions
A third of SMEs (34%) sought external funding in the past year, underscoring the need for accessible financial solutions. Folasade Femi-Lawal, country manager for West Africa at Mastercard, stated: "Nigerian businesses have never been short on ambition. They are investing in their people, embracing digital payments, and seeking capital to expand."
Confidence Built on a Strong Year
Nigerian SMEs are coming off a year of real progress. More than half (56%) reported increased revenue, supported by improved government support (17%) and better infrastructure (16%). While financial concerns (62%), access to credit, and inflation remain challenges, they have done little to dampen optimism. 81% of SMEs are confident about the year ahead, and 68% project further growth.
Investing in People and Digital Capabilities
Entrepreneurs are clear about where their next gains will come from. They point to training and upskilling staff (79%), digitizing their business (78%), and accepting digital payments across multiple channels (73%) as areas with the highest growth potential. Additionally, stronger physical and digital security (60%) and access to mentorship and business advisory support (52%) are seen as critical enablers of success.
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, and many (63%) currently use personal cards for business spending due to convenience. This points to a significant opportunity to introduce dedicated commercial cards and structured credit that offer the same ease while unlocking working capital.
Supporting SMEs Through Partnerships
Mastercard equips Nigerian SMEs with tools, financial solutions, and security capabilities to compete in a digital-first economy. To drive digital inclusion, Mastercard is pioneering low-cost acceptance innovations such as Tap on Phone, QR Pay-by-Link, and SME-in-a-Box, which allow micro-merchants to transform smartphones into secure payment terminals. For SMEs scaling internationally, Mastercard Move facilitates near-real-time cross-border remittances. Ecosystem growth is further accelerated by Start Path and Product Express, programs that enable local fintechs to build and launch customized products. As digital transactions increase, Mastercard ensures ecosystem safety through tokenization and the Mastercard Trust Center, which provides free cybersecurity resources.
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 to foster a more inclusive digital economy.
