More than eight out of ten Nigerian SMEs are feeling upbeat about the coming year. A new Mastercard study reveals that 81% of small and medium business owners are confident about their prospects over the next 12 months.
The research shows entrepreneurs aren't just hopeful—they're ready to act. About 68% of SMEs expect their revenue to climb higher in the year ahead.
Digital payments have become central to their growth plans. Every business surveyed agreed that online and digital payment methods matter for expanding their operations.
Mobile payments lead the way among Nigerian SMEs. Adoption stands at 67%, with card payments at 45% and online transactions at 42%.
Most firms are already hedging their bets. Some 57% now operate through both physical stores and online channels to reach more customers.
Cash and bank transfers remain common, though. This suggests Nigeria's digital economy still has room to grow significantly.
Gabriel Swanepoel, Africa division president at Mastercard, praised the entrepreneurial energy on display. "Nigeria is home to one of the world's most ambitious and fast-moving SME communities," he told reporters at the findings launch.
According to Swanepoel, the data points to a massive opportunity. "When every business agrees digital payments matter to growth, it highlights how we can accelerate SME development through innovation."
Financial support remains a critical need for expansion. Last year, one-third of SMEs (34%) went looking for external funding to fuel their ambitions.
Folasade Femi-Lawal, Mastercard's West Africa country manager, emphasized the company's commitment. She noted that Nigerian entrepreneurs know exactly what they need to scale up successfully.
"They're investing in staff, embracing digital payments, and seeking capital to grow," Femi-Lawal said. "Our job is to make sure accessible financial tools reach every entrepreneur."
Last year wasn't bad for Nigerian SMEs at all. More than half (56%) reported earning more revenue than the previous year.
Government support helped drive that growth. Some 17% of SMEs cited improved policy backing, while 16% pointed to better infrastructure investments.
Still, challenges persist in the business environment. About 62% worry about finances, and credit access and inflation remain thorny issues.
Yet these headwinds haven't killed the optimistic mood. Most SMEs continue betting on growth ahead.
Training staff ranks highest on the priority list. A striking 79% of entrepreneurs see upskilling workers as their biggest opportunity for gains.
Digitizing operations comes in second at 78%. Three-quarters (73%) also want to accept digital payments through multiple channels.
Business owners see security as equally important. Some 60% identify stronger physical and digital protection as critical, while 52% want mentorship and advisory support.
The appetite for growth capital is unmistakable. Nearly 70% of SMEs are actively seeking credit to expand their operations.
Many rely on personal cards for business spending. This workaround exists largely because accessing formal credit remains difficult for some entrepreneurs.
