Eighty-one percent of Nigerian small and medium-sized enterprises (SMEs) expect their businesses to grow over the next 12 months despite persistent challenges such as inflation, financial pressures and limited access to credit, according to a new report by Mastercard.
Gatekeepers News reports that in an article published on Thursday, the payments technology company said 68 percent of SMEs also anticipate revenue growth in the coming year, reflecting strong business confidence despite prevailing economic headwinds.
The findings are contained in Mastercard’s SME Confidence Index, a multi-market study that measures the sentiment, priorities and growth outlook of SMEs across Eastern Europe, the Middle East and Africa.
According to the report, more than half of Nigerian SMEs (56 percent) recorded revenue growth over the past year, driven by improved government support and better infrastructure.
“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 remains committed to supporting SMEs with the tools, financing solutions and partnerships required to help them scale their businesses confidently.
The report highlighted the growing importance of digital payments in business expansion, with all respondents agreeing that digital and online payment solutions are critical to growth.
According to Mastercard, mobile payments recorded the highest adoption rate among SMEs at 67 percent, followed by card payments at 45 percent and online payments at 42 percent. It added that 57 percent of businesses now operate through a blend of physical and digital channels.
Commenting on the findings, Folasade Femi-Lawal, Country Manager for West Africa at Mastercard, said Nigerian entrepreneurs remain focused on growth despite economic challenges.
“Nigerian businesses have never been short on ambition, and what stands out now is how clearly they know what they need to grow,” she said.
“They are investing in their people, embracing digital payments and seeking the capital to expand.”
Femi-Lawal added that Mastercard is collaborating with partners to provide entrepreneurs with accessible and secure financial solutions that can help transform growth ambitions into long-term business success.
The report also revealed that Nigerian entrepreneurs are prioritising workforce development, business digitisation and the adoption of digital payment channels as key strategies for expansion.
According to the findings, 79 percent of SMEs identified employee training and upskilling as their top growth priority, while 78 percent pointed to digitising business operations. Another 73 percent said accepting digital payments across multiple channels would help accelerate growth.
Access to finance remains a major concern, however. Mastercard said 69 percent of SMEs are seeking credit to support expansion plans, although only 34 percent secured external funding within the past year.
The company further noted that 63 percent of SMEs currently rely on personal payment cards for business expenses because they are more accessible and convenient, underscoring the need for more structured financing options tailored to small businesses.
