Nigeria’s small and medium enterprises (SMEs) are increasingly embracing digital payments and technology-driven business models as they position for growth over the next year, according to a new study by Mastercard.
The report revealed strong optimism among Nigerian entrepreneurs, with 81% expressing confidence about their business outlook over the next 12 months, while 68% expect their revenues to increase during the period.
The findings were contained in the Mastercard SME Confidence Index, a multi-market survey that examines the sentiment, priorities, and growth expectations of SMEs across Eastern Europe, the Middle East, and Africa.
What the report is saying
The study showed unanimous agreement among Nigerian SMEs on the importance of digital and online payments to business growth.
- 100% of surveyed SMEs said digital and online payments are vital to expanding their businesses.
- Mobile payments emerged as the most widely adopted digital payment method, with 67% of SMEs using them.
- Card payments recorded a 45% adoption rate, while 42% of businesses currently accept online payments.
- More than half of Nigerian SMEs (57%) now operate through a combination of physical and online sales channels.
The report also highlighted the growing importance of capacity building and technology adoption among business owners.
- Training and upskilling employees ranked as the top growth priority for 79% of SMEs.
- Digitizing business operations followed closely, with 78% identifying it as a key area of focus.
- Access to finance remains a major concern, with 69% of SMEs actively seeking credit to support expansion plans.
What they are saying
Commenting on the findings, Mastercard’s Division President for Africa, Gabriel Swanepoel, said Nigerian SMEs continue to demonstrate strong entrepreneurial drive and a willingness to adopt digital solutions.
According to him, the fact that every SME surveyed recognizes the importance of digital payments underscores the opportunity to accelerate business growth through technology and innovation.
He noted that Mastercard remains focused on providing the tools, financial solutions, and partnerships needed to help SMEs scale their operations and compete effectively in a rapidly evolving business environment.
Why it matters
The report reinforces the critical role SMEs play in Nigeria’s economy and highlights how digital transformation is becoming central to business growth strategies.
Although cash transactions and bank transfers remain widely used, increasing adoption of mobile, card, and online payment solutions points to a gradual shift toward a more digitized commercial environment.
The findings also suggest that improved access to financing, workforce development, and digital infrastructure will be crucial in helping Nigerian SMEs unlock their growth potential and contribute more significantly to economic development.
