A new report by Mastercard has revealed strong optimism among Nigerian micro, small and medium-sized enterprises (MSMEs), with 81 per cent expressing confidence in their business prospects over the next 12 months despite prevailing economic challenges.

The findings, contained in Mastercard’s 2026 SME Confidence Index, showed that 68 per cent of Nigerian SMEs expect revenue growth within the next year, while all respondents agreed that digital and online payments are critical to their future success.

According to the report, Nigerian businesses are increasingly investing in digital technologies, staff development and access to finance as they seek to expand operations and explore new markets.

Mastercard noted that Nigeria, home to nearly 40 million MSMEs according to the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), remains one of Africa’s most dynamic entrepreneurial markets, with small businesses playing a key role in job creation, innovation and economic development.

The report identified the limited acceptance of digital payments by merchants as one of the biggest barriers to growth, despite rising consumer demand for cashless transactions.

To address the challenge, Mastercard said it had partnered with Wema Bank and UBA to introduce QR-on-Card payment solutions, enabling about 1.8 million Nigerian SMEs and gig workers to receive digital payments without the need for additional payment hardware.

The company also highlighted the high cost of cross-border transactions as a major obstacle to business expansion, noting that Sub-Saharan Africa remains the world’s most expensive region for international money transfers, with average transaction costs of about 8.5 per cent.

It said its Mastercard Move platform, which connects more than 200 countries and territories, is helping businesses conduct faster and more efficient cross-border transactions through partnerships with financial institutions, including Access Bank and Fidelity Bank.

On capacity development, the report found that 79 per cent of Nigerian SMEs consider staff training and upskilling a top priority for growth, prompting Mastercard’s collaboration with the Lagos State Employment Trust Fund to improve financial literacy and digital adoption among micro-businesses.

The survey also showed that access to finance remains a major concern, with 69 per cent of SMEs seeking credit for expansion, while 63 per cent currently rely on personal bank cards to finance business operations.

Mastercard said wider adoption of digital payments would help businesses build transaction histories that could improve their creditworthiness and access to formal financing.

Cybersecurity also emerged as a growing concern, with 60 per cent of respondents identifying stronger physical and digital security as essential for business growth.

Commenting on the findings, Mastercard’s Country Manager for West Africa, Dr. Folasade Femi-Lawal, said Nigerian entrepreneurs have demonstrated their readiness to scale their businesses, stressing that stronger digital infrastructure is needed to support their ambitions.

She said businesses are already investing in technology, workforce development and expansion, adding that collaboration among technology firms, financial institutions and policymakers would be critical to providing affordable payment solutions, secure digital systems and seamless cross-border transactions needed to accelerate SME growth.