Nigerian small and medium-sized enterprises (SMEs) remain optimistic about their business prospects over the next year, with a large majority expecting expansion despite persistent concerns around inflation, financing constraints and operating costs. New findings released by Mastercard show that more than eight in ten SMEs anticipate growth within the next 12 months, reflecting continued confidence in Nigeria’s entrepreneurial sector.
The survey also found that a significant number of businesses expect higher revenues in the coming year, even as access to affordable credit and broader economic challenges continue to affect operations. More than half of the businesses surveyed reported improved earnings over the past year, pointing to stronger business activity and gradual improvements in the operating environment.
According to data reviewed by Brandspur Banking News Desk, the study forms part of Mastercard’s SME Confidence Index, which measures business sentiment, priorities and growth expectations across markets in Eastern Europe, the Middle East and Africa.
The report highlights the growing role of digital payments in business development, with respondents overwhelmingly identifying electronic payment solutions as essential to scaling operations. Mobile payment channels emerged as the most widely used option among Nigerian SMEs, while card and online payment platforms also recorded substantial adoption levels.
Mastercard said many businesses are increasingly combining physical operations with digital channels to reach customers, reflecting a broader shift toward technology-driven commerce. The company noted that entrepreneurs are prioritising workforce development, digital transformation and payment innovation as key strategies for future expansion.
Training and upskilling employees ranked among the highest investment priorities for SMEs, alongside efforts to digitise business processes and strengthen payment acceptance capabilities. The findings suggest that Nigerian business owners are focusing on long-term competitiveness by improving skills, efficiency and customer experience.
The study also revealed a strong demand for business financing, with many SMEs seeking credit facilities to fund expansion plans. Despite this need, a considerable share of entrepreneurs continue to rely on personal payment cards for business-related expenses, underscoring ongoing gaps in access to structured financing solutions for small businesses across Nigeria.
