Digital transformation is accelerating among Nigerian small and medium-sized enterprises, with mobile payments now accepted by 67 percent of SMEs, while 45 percent accept card payments and 42 percent offer online payment options. Additionally, 57 percent operate through both physical locations and online channels, according to the latest Mastercard SME Confidence Index.
Although cash and bank transfers remain widely used, the research highlights considerable potential to expand digital payment adoption across the sector.
Remarkable Ambition
“Nigeria is home to one of the most entrepreneurial and fast-moving SME communities anywhere in the world, and the ambition on display in this research is remarkable. When every business surveyed agrees that digital payments matter to their growth, it highlights the opportunity to accelerate SME development through digital innovation. Our focus is to meet that ambition with the right tools, finance, and partnerships so these businesses can scale with confidence,” said Gabriel Swanepoel, Division President, Africa, Mastercard.
Funding and Expansion
Around one-third (34 percent) of SMEs sought external financing during the past year, underlining the importance of accessible funding for businesses pursuing expansion.
“Nigerian businesses have never been short on ambition, and what stands out now is how clearly they know what they need to grow. They are investing in their people, embracing digital payments, and seeking the capital to expand. At Mastercard, we are committed to working with our partners to put accessible, secure financial tools within reach of every entrepreneur, so they can turn that ambition into lasting success,” said Folasade Femi-Lawal, Country Manager, West Africa, Mastercard.
Strong Business Performance and Optimism
The research reveals that confidence is backed by solid business performance. More than half (56 percent) reported increased revenue over the past year, supported by improved government assistance (17 percent) and stronger infrastructure (16 percent). While inflation, access to credit, and broader financial pressures remain challenges, 81 percent remain optimistic, and 68 percent expect continued revenue growth.
Future Priorities
SMEs identified future priorities including:
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Employee training (79 percent)
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Digitising operations (78 percent)
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Expanding digital payment acceptance (73 percent)
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Better physical and digital security (60 percent)
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Business mentorship and advisory support (52 percent)
Funding Demand
Demand for funding remains high, with 69 percent seeking business credit to support expansion. Meanwhile, 63 percent rely on personal payment cards for business expenses because they are convenient—highlighting an opportunity for tailored commercial credit products.
Mastercard Solutions
Mastercard continues to support Nigerian SMEs through partnerships, digital payment innovations, and financial solutions designed for a digital economy. Solutions including:
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Tap on Phone – enabling contactless payments
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QR Pay-by-Link – simplifying payment acceptance
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SME-in-a-Box – an all-in-one digital toolkit
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Mastercard Move – enabling near real-time cross-border remittances
The company also supports fintech innovation through Start Path and Product Express, helping businesses launch products such as virtual cards and open banking solutions.
To strengthen trust in digital commerce, Mastercard incorporates tokenization into payment systems and provides cybersecurity resources through the Mastercard Trust Center.
Commitment to SME Growth
The Mastercard SME Confidence Index highlights a community of entrepreneurs eager to expand, and Mastercard remains committed to deploying scalable solutions and capability-building initiatives that foster a more inclusive and dynamic digital economy.
