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Small and medium enterprises (SMEs) in Nigeria are experiencing accelerated growth through digital payments, innovation, and strategic partnerships, according to the latest Mastercard SME Confidence Index. With 99% of Nigerian SMEs now adopting digital transactions, businesses are leveraging cashless solutions to boost efficiency, enhance customer experience, and strengthen financial resilience.
The Digital Transformation Driving SME Expansion
As Nigeria’s economy undergoes rapid digitalization, SMEs are prioritizing secure and seamless payment solutions to remain competitive. Entrepreneurs highlight key advantages such as simplified transactions, improved supplier relationships, and reduced reliance on cash. Looking ahead, 73% of SMEs plan to expand their digital payment capabilities, while 70% are committed to delivering frictionless, user-friendly payment experiences to enhance customer engagement.
Strategic Priorities: Cybersecurity, Financial Access, and Partnerships
While SMEs anticipate stable or increased revenue, they acknowledge cybersecurity, inflation, and access to financing as critical challenges impacting their growth. Strengthening digital security has become a top priority as businesses increase their dependence on online transactions.
Financing remains a significant concern, with 47% of SMEs seeking funding for expansion and 27% requiring capital for day-to-day operations. To address these challenges, business owners emphasize the role of private sector collaborations, government initiatives, and international partnerships in fostering long-term resilience.
Overcoming Economic Challenges with Resilience
Despite facing high inflation (77%) and rising costs of goods and services (75%), an impressive 78% of SMEs expect to maintain or surpass their 2023 revenue levels. Entrepreneurs cite private sector partnerships (56%), government support (47%), and global collaborations (41%) as key factors driving business sustainability.
Mastercard’s Commitment to Empowering SMEs
Mastercard is actively supporting Nigerian SMEs through cutting-edge technology, financial inclusion programs, and strategic collaborations. In July 2023, the company partnered with Alerzo, a B2B e-commerce platform, to digitize SMEs in the fast-moving consumer goods (FMCG) sector, making digital payments more accessible.
Through its Product Express platform, Mastercard is enabling fintech firms to launch card programs quickly, improving financial accessibility. Additionally, its Start Path program provides fintech startups like Duplo and Mono with operational support, commercial opportunities, and strategic investment.
To further drive digital transformation, Mastercard has introduced Tap on Phone, QR Pay by Link, and Payment Link, expanding financial inclusion across Nigeria. By collaborating with governments, financial institutions, and private sector partners, Mastercard is reinforcing SME resilience, supporting sustainable growth in an evolving business landscape.
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