General News
78% of SMEs in Nigeria project Increased Revenue in 2023 – Mastercard SME Confidence Index Report
From surviving to thriving in the post-COVID world, small and medium enterprises (SMEs) in Nigeria are projecting similar or increased revenues in 2023. These are the findings of the second edition of the Mastercard Eastern Europe, Middle East and Africa (EEMEA) SME Confidence Index.
The 2021 inaugural SME Confidence Index delved into the impact of the pandemic on SMEs across sectors, products and services, and how they are embracing a digital future.
As a continuation, the second edition of the survey reveals that while 63% of SMEs across Nigeria are confident about business growth, an overwhelming number of businesses (97%) believe that omnichannel payments present the biggest opportunity for them.
As companies recover from the pandemic and return to growth phase, the research shows that 55% of SMEs in Nigeria are concerned about rising cost of doing business in 2023 and access to capital funding (42%).
Six out of 10 SMEs in Nigeria are optimistic about the future
78% of SMEs project increase or similar revenues in 2023. The survey reveals that 63% of micro and small businesses are optimistic about the next 12 months while their medium-sized counterparts run behind at 33%.
The survey highlights top three areas of growth opportunities for SMEs in Nigeria – access to training and development (95%), digitizing business (93%) and access to better data, analytics and insights (89%).
Insufficient access to credit and inflation remain key factors inflation business growth in Nigeria
SMEs in Nigeria have identified rising cost of goods and services (74%), inflation (67%) and insufficient access to credit (42%) as factors impacting business growth.
Other factors include lingering effects of the pandemic (27%), unemployment (24%), red tape and regulations (15%).
“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% of SMEs project similar or increased revenues in 2023.
“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,” said Ebehijie Momoh, Country Manager & Area Business Head for West Africa at Mastercard.
Mastercard leverages its extensive network, state-of-the-art technology, and global partnerships to help SMEs to adapt to changing commercial environments and new spending patterns. The company works with governments and the private sector to build synergies that advance financial inclusion and motivates consumers and merchants to support small businesses.
Federal government has temporarily suspended the controversial annual dues imposed on public interest enterprises by the Financial Reporting Council (FRC) after fierce opposition from businesses.
Jumoke Oduwole, minister, Industry, Trade, and Investment, announced the decision during a Ministerial Consultative Meeting in Abuja on Wednesday.
The move follows mounting pressure from private sector groups, including the Nigeria Employers’ Consultative Association (NECA) and the Manufacturers Association of Nigeria (MAN), who slammed the Financial Reporting Council (Amendment) Act 2023 for burdening companies with excessive fees.
The Act mandates cumulative annual charges for non-listed entities and imposes a harsh 10% monthly penalty on unpaid dues, compounding until full payment, a provision that sparked widespread backlash.
At the meeting, major industry players like NECA, MAN, the Nigerian Association of Chambers of Commerce (NACCIMA), oil producers, and telecom operators warned that the fees would cripple businesses already struggling in a tough economy.
Oduwole clarified the suspension, stating, “The government has decided to direct the Financial Reporting Council to pause in the implementation of the new annual dues. You know that I am a lawyer, and a suspension request by the organised private sector would be in contravention of legislation duly passed by the National Assembly. A pause is an administrative process simply to review, in line with what we discussed today.”
She assured stakeholders that the halt would last no longer than 60 days, with a technical working group—including FRC officials and private sector representatives—set up to reassess the policy.
“We are a listening administration. The private sector has requested a range from three months to an indefinite suspension. We are not going to do that. So, at the most, 60 days is in my estimate. We are going to set up a technical working group comprised of the FRC and the organised private sector who have formally written in, and this will be reviewed,” Oduwole emphasized.
The Standards Organisation of Nigeria (SON) says it is intensifying efforts to standardise locally manufactured products, including Made-in-Aba brands, in order to enhance both local and international acceptance.
Aharanwa Chuks, Director of Region (South East), SON, communicated this in an interview with the News Agency of Nigeria (NAN) on Wednesday in Abuja.
Chuks said through the Mandatory Conformity Assessment Programme (MANCAP), SON ensured that all Nigerian-made products conformed to the relevant Nigerian Industrial Standards (NIS).
According to him, MANCAP involves direct engagement with manufacturers to certify that their products meet established quality benchmarks.
“This process includes inspecting production facilities, sampling products and testing them against NIS requirements.
“Successful compliance results in the issuance of the MANCAP certification, signifying adherence to quality standards.
“In Aba, SON has been proactive in educating manufacturers about standardization.’’
The director said SON also conducted stakeholder interactions; gathering manufacturers from various sectors to provide guidance on producing goods that met both local and international standards.
“For instance, leather manufacturers in Aba have been sensitized on standardization practices to enhance the global competitiveness of their products.
“Manufacturers are encouraged to collaborate with SON to obtain MANCAP certification, ensuring their products are not only marketable within Nigeria but also competitive internationally.
“This initiative aims to boost consumer confidence and promote the acceptance of Made-in-Aba products globally,” Chuks said.
Operatives of the Economic and Financial Crimes Commission (EFCC), has busted a Ponzi Scheme Academy and arrested 133 suspects in Abuja.
They were arrested at the Compensation Layout in Gwagwalada area of the Federal Capital Territory, FCT, Abuja, following actionable intelligence on the existence of the Academy.
The Academy, named Q University (a.k.a Q-Net) is in the business of recruiting gullible young Nigerians who are trained to recruit more gullible citizens into the scheme with the promise of getting unrealistic profit returns.
The suspects are enrolled into a training codenamed: “Special Training for New Generation Billionaire” and brainwashed to believe that they would graduate into the league of billionaires.
They got into the training by obtaining a form the promoters called “Independent Representative Application Form” with promotional slogans such as: “I’m a Champion” “I’m Unstoppable”, “I’m Infinity”, among others.
The EFCC carried out the operation in collaboration with officers and men of 176 Guards Battalion, Nigerian Army.
Items recovered from the suspects include phones, computers and other electronic gadgets.
They will be charged to court as soon as investigations are concluded.
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