Nigerian small and medium-sized enterprises (SMEs) are increasingly leveraging digital technologies, workforce development and business expansion strategies to strengthen their growth prospects, according to findings from a recent industry survey.
The survey revealed strong optimism among business owners, with 81 per cent expressing confidence in their outlook for the next year, while 68 per cent anticipate an increase in revenue during the same period.
Speaking on the findings, Folasade Femi-Lawal, Country Manager for West Africa at Mastercard, said local businesses continue to display resilience and a proactive approach to growth despite economic challenges.
She noted that many entrepreneurs are prioritising employee development, embracing digital payment systems and seeking financial resources to scale their operations.
According to her, efforts are ongoing to make secure and accessible financial solutions available to more business owners through strategic partnerships and innovation-driven initiatives.
The report showed unanimous agreement among respondents on the importance of digital and online payments to business success.
Mobile payment solutions emerged as the most widely adopted at 67 per cent, followed by card transactions at 45 per cent and online payments at 42 per cent.
It also found that 57 per cent of SMEs now operate through a combination of physical outlets and digital platforms.
Investment in human capital remains a major priority, with 79 per cent of respondents focusing on staff training and skills development, while 78 per cent are actively pursuing digitisation projects.
Additionally, 73 per cent are expanding digital payment acceptance to enhance operational efficiency and improve customer experience.
Cybersecurity was identified as a growing concern, with 60 per cent of businesses strengthening fraud prevention and digital security measures.
The survey further indicated that 52 per cent of SME owners are seeking mentorship and advisory services to support business growth.
Access to finance remains a key issue, as 69 per cent of respondents are looking for credit facilities to fund expansion plans. Although 34 per cent secured external funding within the last year, many businesses continue to face financing constraints.
The findings showed that 63 per cent of SMEs still depend on personal payment cards for business-related expenses, underscoring persistent gaps in access to formal funding.
Gabriel Swanepoel, Mastercard’s Executive Vice-President for Market Development in Eastern Europe, the Middle East and Africa, described Nigeria’s SME sector as one of the most dynamic and entrepreneurial globally.
He said the widespread adoption of digital payments among businesses presents significant opportunities to accelerate growth and strengthen the sector’s contribution to the economy.
According to the report, 56 per cent of SMEs recorded revenue growth over the past year, aided by improvements in infrastructure and supportive government measures.
Despite these gains, inflationary pressures and broader economic challenges continue to affect business performance.
The survey concluded that expanding financial inclusion and improving access to funding will be critical to sustaining SME growth and unlocking greater economic value from the sector in the years ahead.