Small and medium enterprises (SMEs) in Nigeria are increasingly adopting digital payment solutions to enhance efficiency, streamline operations and strengthen financial resilience.
According to the latest Mastercard SME Confidence Index, 99% of SMEs in Nigeria now accept digital payments to deepen growth and adapt to the Nigerian evolving business environment.
Despite ongoing economic challenges, including inflation, rising operational costs and limited financial access, SMEs are leveraging technology and strategic partnerships to sustain growth.
The report highlights inflation as the primary concern for 77% of SMEs while 75% cite rising costs of goods and services as a key pressure point.
However, resilience remains strong, with 78% of SMEs expecting to maintain or increase revenue this year.
President for Eastern Europe, Middle East, and Africa at Mastercard, Dimitrios Dosis, emphasized the critical role SMEs play in economic development, particularly as digital transformation accelerates.
“Small and medium enterprises are the backbone of economies, driving innovation, employment, and resilience. As businesses embrace digital solutions, they are unlocking new opportunities through financial inclusion and cashless transactions,” Dosis stated.
The adoption of digital payments is not only improving customer experience and transaction efficiency but also reducing the reliance on cash, making business operations more secure and seamless. Many SMEs cited ease of payment processing, improved supplier transactions and enhanced record-keeping as key benefits.
Mark Elliott, Division President for Africa at Mastercard, noted that the shift toward digital transactions reflects the ability of Nigerian SMEs to adapt to technological advancements while ensuring sustainability in a competitive landscape.
“Nigerian SMEs are showing exceptional agility by embracing digital payment solutions to drive business transformation. At Mastercard, we are committed to equipping these businesses with innovative tools, fostering strategic collaborations, and supporting their journey toward greater financial inclusion and security,” he said.
Looking ahead, the Mastercard SME Confidence Index revealed that 73% of SMEs plan to expand their digital payment capabilities, while 70% are focused on improving user-friendly payment experiences to maintain a competitive edge.
The report further revealed private-sector partnerships (56%), government-led initiatives (47%) and international collaborations (41%) as critical enablers of SME growth. However, access to credit remains a priority with 47% of SMEs seeking funding to expand operations while 27% require capital to support daily business activities.
