Mastercard: 81% of Nigerian SMEs forecast business expansion within a year

DESPITE persistent inflationary pressures and limited access to financing, a large majority of Nigerian small and medium-sized enterprises (SMEs) remain confident about their prospects, with 81 percent expecting their businesses to grow over the next 12 months, according to Mastercard.

The payments technology company disclosed on Thursday that 68 percent of SMEs anticipate higher revenues in the coming year. While entrepreneurs continue to grapple with financial constraints, rising costs and restricted credit access, optimism across the sector remains strong.

Mastercard’s latest SME Confidence Index revealed that 56 percent of Nigerian SMEs recorded revenue growth over the past year. The company attributed this performance partly to improvements in government support initiatives and infrastructure development.

The index is a multi-market survey designed to assess business sentiment, growth expectations and priorities among SMEs across Eastern Europe, the Middle East and Africa.

Commenting on the findings, Mastercard’s Division President for Africa, Gabriel Swanepoel, described Nigeria as one of the world’s most dynamic entrepreneurial markets. He said the study underscores the strong ambition among business owners and highlights the growing importance of digital payments in driving expansion.

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According to Swanepoel, Mastercard remains committed to helping SMEs scale by providing access to financing solutions, partnerships and business tools that support sustainable growth.

The report found unanimous agreement among respondents on the importance of digital and online payments to business expansion. Mobile payments emerged as the most widely adopted payment method, used by 67 percent of SMEs, while card payments and online payments recorded adoption rates of 45 percent and 42 percent respectively.

In addition, 57 percent of surveyed businesses operate through a hybrid model that combines physical and online sales channels.

Mastercard’s Country Manager for West Africa, Folasade Femi-Lawal, said Nigerian entrepreneurs have a clear understanding of the resources required to achieve growth. She noted that many businesses are investing in workforce development, embracing digital payment solutions and pursuing additional capital to support expansion plans.

Femi-Lawal added that Mastercard is collaborating with partners to make secure and accessible financial solutions available to entrepreneurs, enabling them to convert growth aspirations into long-term business success.

The survey also highlighted key investment priorities among SMEs. Employee training and upskilling ranked highest, cited by 79 percent of respondents, while 78 percent identified business digitisation as a major focus area. Meanwhile, 73 percent said accepting digital payments through multiple channels would contribute significantly to future growth.

Access to finance remains a major concern, with 69 percent of SMEs seeking credit facilities to expand their operations. Mastercard reported that 34 percent of businesses secured external funding within the last year.

The company further noted that 63 percent of SME owners currently rely on personal payment cards for business expenses because of their ease of access and convenience, underscoring the need for more structured financing options tailored to small businesses.