Small and medium-sized enterprises (SMEs) in Nigeria are gearing up for a promising conclusion to 2023, with a significant 78% of them forecasting either steady or increased revenues in the remaining months of the year.
These encouraging insights are part of the second edition of the Mastercard SME Confidence Index, focusing on the Eastern Europe, Middle East, and Africa (EEMEA) region.
The study, which assessed the pandemic's impact on SMEs and their digitalisation efforts, now reveals that 63% of Nigerian SMEs feel confident about their growth prospects.
However, as SMEs chart their course towards recovery in the remaining months of 2023, the rising cost of doing business (55%) and concerns about securing capital funding (42%) have emerged as key challenges.
The level of optimism varies among micro and small businesses (63%) and their medium-sized counterparts (33%), but overall, six out of ten Nigerian SMEs are looking forward to a brighter future in the remaining months of the year.
Ebehijie Momoh, Country Manager & Area Business Head for West Africa at Mastercard, expressed optimism about the SMEs' resilience and said, "At Mastercard, we are committed to supporting small businesses and merchants, helping them access credit, providing insights, and enabling digital solutions."
He added that Mastercard, leveraging its network and technology, aims to facilitate fast electronic payments, drive business growth, and enhance cybersecurity in the remaining months of 2023.
Nigerian SMEs are increasingly recognising the importance of omnichannel payment solutions in meeting the needs of their customers. The Mastercard SME Confidence Index found that 97% of Nigerian SMEs see omnichannel payment solutions as their most significant opportunity.
Omnichannel payment solutions allow businesses to accept payments from customers through various channels, including online, in-store, and mobile. This flexibility is essential for businesses that want to reach a wider customer base and provide a seamless shopping experience.
Despite their optimism for the future, Nigerian SMEs are facing some key challenges, such as the rising cost of doing business and access to capital funding.
The Mastercard SME Confidence Index found that 55% of Nigerian SMEs are concerned about the rising cost of doing business. This is a significant challenge, as businesses are already struggling to operate profitably in the current economic environment.
In addition, 42% of Nigerian SMEs are concerned about securing capital funding. This can make it difficult for businesses to invest in growth and expansion.
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