Providing SMEs with digital financial solutions to grow businesses

Micro, Small, and Medium-sized Enterprises (MSMEs) are the lifeblood of the Nigerian economy, significantly contributing to employment, innovation, and economic growth. Over 36.9 million MSMEs exist in Nigeria, accounting for 96.7% of all enterprises.

However, in order for these enterprises to fulfill their full potential and drive the country’s development, they require relevant, affordable, and accessible digital financial solutions. The moment has come for Nigeria to understand these solutions’ revolutionary power and the significant influence they may have on the growth of MSMEs and the wider economy.

The Digital SME: How Are Small and Medium Enterprises in the Middle East and Africa Embracing a Digital Future?’ is a recent Mastercard study. gives useful insights into the growing landscape of MSMEs in the Middle East and Africa (MEA), including Nigeria. One of the study’s most convincing conclusions is that MSMEs are aware of the various benefits of digitalization. Digitalization is a beneficial tool for Nigerian MSMEs since it can improve day-to-day operations, accelerate development, and promote financial inclusion.

To profit from digital financial solutions, MSMEs must have access to them and be able to afford them. Previously, MSMEs had limited access to financial services; however, with the emergence of digital financial solutions, these constraints have been lifted, and even the most remote MSMEs now have access to financial services.

We take great delight in actively supporting programs in Nigeria that promote financial inclusion. We have made digital payments more affordable and accessible for MSMEs, even in distant places, through smart relationships with local banks. Our most recent partnership with First City Monument (FCMB) and Netplus provide a ground-breaking contactless payment system. Merchants may now accept payments using their Android smartphones or tablets, removing the need for additional Point-of-Sale (POS) hardware. This innovation simplifies business transactions, lowers expenses, and empowers Nigerian enterprises. Tap on Phone works by turning on the device’s Near Field Communication (NFC) capabilities, which allow it to communicate with a customer’s contactless payment card. Simply tap the customer’s card on the merchant’s smartphone or tablet, and the payment is handled over the Mastercard network.

Collaboration and innovation are essential to Mastercard’s approach to enabling Nigerian MSMEs. To leverage breakthrough technology and provide cutting-edge digital banking solutions, we have worked with local fintech companies and telecoms. These cooperation have resulted in the creation of novel payment systems and financial management solutions tailored to the demands of Nigerian MSMEs.

We have greatly expanded access to digital financial services by collaborating with carriers. We are pioneering in the fast growing mobile money sector, collaborating with telcos and Mobile Network Operators (MNOs), retailers and e-tailers, and traditional and non-traditional financial institutions to provide financial access to millions of customers and merchants. We have collaborated with Airtel to provide Virtual Card and QR Payment functionality to over 100 million Airtel customers in 14 African and Middle Eastern areas, as well as to onboard over 100k SMEs as QR merchants. We collaborated with MTN, an African mobile network operator, to deliver new digital services to MTN’s platform.

Mastercard is committed to Empowering Every Business Everywhere by utilizing its innovation and solutions beyond payments to assist small and medium-sized businesses in getting paid, raising finance, and becoming digital – safely and securely – wherever they are.

Financial and digital inclusion are vital to the African continent’s socioeconomic prosperity, and we realize that achieving this at the scale Africa requires will not be a solo undertaking. This is why we are collaborating with a number of private enterprises, government institutions, and development agencies to establish stronger payment platforms, increase financial literacy, and empower even the tiniest businesses.

MSMEs in Nigeria provide more than 45% of the country’s GDP and employ more than 80% of the workforce. MSMEs are consequently crucial for economic development, and we must encourage their expansion. We must collaborate to help more MSMEs survive into their fourth year by ensuring they have access to financial and operational demands, have the technology support they require to handle market problems, and make doing business easier for them. If we get that right, I believe Nigeria’s economy can grow at a 7.5% annual rate.