Small and medium-sized enterprises across Nigeria are preparing for a positive year ahead, driven by confidence in their growth prospects and an increasing reliance on digital tools. New research from Mastercard shows that entrepreneurs are optimistic about expanding their businesses, with digital payments emerging as a key factor supporting that ambition.
The latest Mastercard SME Confidence Index found that 81% of Nigerian SMEs are confident about the next 12 months, while 68% expect their revenues to increase. The study measures business sentiment, priorities and growth expectations among SMEs across Eastern Europe, the Middle East and Africa.
The shift towards digital commerce continues to gather pace. Mobile payments are the most widely adopted payment method among Nigerian SMEs at 67%, followed by card payments at 45% and online payments at 42%. More than half of businesses (57%) now combine physical stores with online sales channels. Although cash and bank transfers remain common, the findings indicate significant opportunities to expand digital payment acceptance.
“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.
Access to finance remains an important priority, with 34% of SMEs reporting that they sought external funding over the past year to support their business goals.
“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.
The report suggests that this confidence is rooted in recent business success. More than half of SMEs (56%) recorded revenue growth over the past year, with improved government support (17%) and stronger infrastructure (16%) contributing to their performance. Even as inflation, financing challenges and broader financial pressures persist, optimism remains high, with four in five businesses confident about the future.
Business owners are also investing in areas they believe will strengthen long-term performance. Training employees (79%), digitising business operations (78%) and offering digital payment options across multiple channels (73%) rank among the top priorities. Enhanced physical and cyber security (60%), together with access to mentoring and business advisory services (52%), are also seen as essential to building resilient businesses.
Funding demand continues to rise, with 69% of SMEs looking for credit to expand. Additionally, 63% currently use personal cards for business spending because they offer quick and convenient access, highlighting the opportunity for commercial payment and lending solutions designed specifically for SMEs.
Mastercard continues to strengthen Nigeria’s SME ecosystem through financial technology, strategic partnerships and digital payment innovations.
Solutions such as Tap on Phone, QR Pay-by-Link and SME-in-a-Box allow merchants to accept secure digital payments using smartphones, removing the need for dedicated payment terminals. Mastercard Move also supports businesses engaged in international trade by enabling near real-time cross-border remittances.
The company further supports innovation through Start Path and Product Express, programmes that help fintech companies rapidly develop and introduce products including virtual cards and open banking capabilities.
As digital commerce expands, Mastercard continues to prioritise security through technologies such as tokenization and by providing free cybersecurity resources for SMEs through the Mastercard Trust Center.
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.
