SMEs worried about rising cost of doing business in Nigeria – Survey

A recent report by the Mastercard Eastern Europe, Middle East and Africa (EEMEA) SME Confidence Index has indicated that small and medium enterprises (SMEs) in Nigeria are concerned about the rising cost of doing business.

The survey also indicated that from surviving to thriving in the post-COVID world, SMEs in Nigeria are projecting similar or increased revenues in 2023. It also suggested that future growth will be driven by omnichannel payment solutions, access to credit funding and digitizing business.

Ebehijie Momoh, Mastercard’s country manager and area business head for West Africa, stated that the second edition of the survey revealed that while 63 percent of SMEs across Nigeria are confident about business growth, about 97 percent believed that omnichannel payments present the biggest opportunity for businesses.

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He stated that the survey also found that six out of 10 SMEs in Nigeria are optimistic about the future. “78 percent of SMEs project increase or similar revenues in 2023. The survey reveals that 63 percent of micro and small businesses are optimistic about the next 12 months while their medium-sized counterparts run behind at 33 percent”.

According to him, the 2021 inaugural SME Confidence Index delved into the impact of the pandemic on SMEs across sectors, products and services, and how businesses are embracing a digital future.

“As companies recover from the pandemic and return to growth phase, the research shows that 55 percent of SMEs in Nigeria are concerned about rising cost of doing business in 2023 and access to capital funding accounts for 42 percent,” Momoh stated.

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He stated further that the survey highlighted the top three areas of growth opportunities for SMEs in Nigeria, which are access to training and development (95%), digitizing business (93%) and access to better data, analytics and insights (89%).

However, insufficient access to credit and inflation remain key factors affecting business growth in Nigeria. “We are encouraged by the findings of the Mastercard SME Confidence Index, which demonstrates the resilience and optimism of SMEs in Nigeria. It is inspiring to see that 78 percent of SMEs project similar or increased revenues in 2023.

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“At Mastercard, we are committed to supporting small businesses and merchants by leveraging our network, technology, and partnerships. In an evolving commercial landscape with changing spending patterns, we recognize the importance of connections and inclusivity. We will assist businesses in accessing credit and maintaining stable cash flow.

“We will provide them with valuable insights through analysis and digital training. Moreover, we will empower them to embrace digital solutions, enabling fast electronic payments, fostering business growth, and safeguarding against cyber threats,” Momoh stated.

According to him, Mastercard leverages its extensive network, state-of-the-art technology, and global partnerships to help SMEs adapt to changing commercial environments and new spending patterns. He stated that the company works with governments and the private sector to build synergies that advance financial inclusion and motivate consumers and merchants to support small businesses.