Nigerian small and medium-sized businesses are entering the coming year with an optimistic outlook, according to new findings from Mastercard. Business owners are increasingly focused on expansion, supported by growing confidence in digital payment solutions and stronger expectations for revenue growth over the next 12 months.
According to the Mastercard SME Confidence Index, 81% of Nigerian SMEs are optimistic about the year ahead, while 68% anticipate higher revenues. The research, conducted across Eastern Europe, the Middle East and Africa, examines the outlook, priorities and business confidence of SMEs throughout the region.
Digital transformation continues to gain momentum among Nigerian businesses. Mobile payments are now accepted by 67% of SMEs, while 45% accept card payments and 42% offer online payment options. Additionally, 57% operate through both physical locations and online channels. Although cash and bank transfers remain widely used, there is considerable potential to expand digital payment adoption.
“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.
Around one-third (34%) of SMEs sought external financing during the past year, underlining the importance of accessible funding for businesses pursuing expansion.
“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 research also reveals that confidence is backed by solid business performance. More than half (56%) reported increased revenue over the past year, supported by improved government assistance (17%) and stronger infrastructure (16%). While inflation, access to credit and broader financial pressures remain challenges, 81% remain optimistic and 68% expect continued revenue growth.
SMEs also identified future priorities, including employee training (79%), digitising operations (78%) and expanding digital payment acceptance (73%). Better physical and digital security (60%), along with business mentorship and advisory support (52%), were also viewed as important for sustainable growth.
Demand for funding remains high, with 69% seeking business credit to support expansion. Meanwhile, 63% rely on personal payment cards for business expenses because they are convenient, highlighting an opportunity for tailored commercial credit products.
Mastercard continues to support Nigerian SMEs through partnerships, digital payment innovations and financial solutions designed for a digital economy.
Solutions including Tap on Phone, QR Pay-by-Link and SME-in-a-Box enable businesses to accept payments using smartphones without dedicated payment hardware. Mastercard Move also helps simplify cross-border payments by enabling near real-time remittances.
The company also supports fintech innovation through Start Path and Product Express, helping businesses launch products such as virtual cards and open banking solutions.
To strengthen trust in digital commerce, Mastercard incorporates tokenization into payment systems and provides cybersecurity resources 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.
