LAGOS, Nigeria — Small and Medium-sized Enterprises (SMEs) in Nigeria are increasingly embracing digital technology to expand their businesses, improve customer experience and unlock new growth opportunities, according to Mastercard’s latest SME Confidence Index.
The report, which surveyed businesses across Africa and the wider Europe, Middle East and Africa (EEMEA) region, shows growing optimism among Nigerian entrepreneurs despite ongoing economic challenges.
According to the findings, 81 percent of Nigerian SMEs are confident about their business prospects over the next year, while 68 percent expect their revenues to increase. More notably, every business surveyed agreed that digital and online payment solutions have become essential for long-term success.
Digital Payments Driving Business Expansion
Mastercard said Nigerian SMEs are increasingly investing in digital technologies, workforce development and access to financing as they position themselves for future growth.
However, the company noted that while consumers are increasingly willing to make digital payments, many businesses still lack affordable payment acceptance solutions.
To address this challenge, Mastercard said it is working with financial institutions to provide low-cost payment technologies that eliminate the need for expensive Point-of-Sale (POS) terminals.
One such initiative is its partnership with Wema Bank and UBA, which introduced QR-on-Card payment solutions designed to help about 1.8 million Nigerian SMEs and gig workers receive digital payments using smartphones without purchasing additional hardware.
Improving Cross-Border Payments
Mastercard also highlighted the challenges many Nigerian businesses face when making international payments, particularly within Africa.
According to the World Bank,
