• 100% of Nigerian SMEs agree that digital and online payments are vital to growing their business
• Nigerian SMEs rank training and upskilling staff (79%) and digitizing their business (78%) as their top growth priorities
• More than two-thirds of SMEs (69%) are seeking credit to grow their business

Nigeria’s small and medium enterprises are looking ahead with confidence and are aligned on what will get them there.

More than eight out of ten SMEs (81%) feel confident about the next 12 months, and they unanimously agree that digital and online payments are vital in helping grow their businesses. A Mastercard study shows that Nigerian entrepreneurs are channelling that optimism into action, with 68% of SMEs expecting their revenue to grow.

The Mastercard SME Confidence Index is a multi-market study that captures the sentiment, priorities and growth outlook of SMEs across Eastern Europe, the Middle East and Africa.

Digital momentum is already well underway. Mobile payment adoption by SMEs stands at 67%, followed by card at 45% and online payments at 42% respectively, with most businesses (57%) now operating across a combination of physical and online channels.

With cash and bank transfers still widely used, there is a clear runway to bring even more everyday commerce into the digital economy.

“Nigeria is home to one of the most entrepreneurial and fast-moving SME communities anywhere in the world, and the ambition on display in this research is remarkable. When every business surveyed agrees that digital payments matter to their growth, it highlights the opportunity to accelerate SME development through digital innovation. Our focus is to meet that ambition with the right tools, finance and partnerships so these businesses can scale with confidence,” said Gabriel Swanepoel, division president, Africa, Mastercard.

A third of SMEs (34%) sought external funding in the past year, highlighting the importance of accessible financial solutions as businesses pursue their growth ambitions.

“Nigerian businesses have never been short on ambition, and what stands out now is how clearly, they know what they need to grow. They are investing in their people, embracing digital payments and seeking the capital to expand. At Mastercard, we are committed to working with our partners to put accessible, secure financial tools within reach of every entrepreneur, so they can turn that ambition into lasting success,” said Folasade Femi-Lawal, country manager, West Africa, Mastercard.

Confidence built on a strong year

Nigerian SMEs are coming off a year of real progress. More than half of SMEs (56%) reported a revenue increase, supported by improved government support (17%) and better infrastructure (16%).

While financial concerns (62%), access to credit and inflation remain key challenges, these have done little to dampen optimism for SMEs, with 81% confident about the year ahead and 68% projecting further growth.

Investing in people and digital capabilities

Nigerian entrepreneurs are clear about where their next gains will come from. They point to training and upskilling staff for the future (79%), digitizing their business (78%) and accepting digital payments across multiple channels (73%) as the areas with the highest potential for growth.

Alongside this, businesses identify stronger physical and digital security (60%) and access to mentorship and business advisory support (52%) critical enablers of business success, reflecting a holistic view of what it takes to build a resilient enterprise.

A strong appetite for growth capital

The ambition to grow is matched by a clear demand for finance. More than two-thirds of SMEs (69%) are seeking credit to expand their business, and many (63%) currently use personal cards for business spending because they are quick and convenient to access.

This points to a significant opportunity to introduce to these businesses dedicated commercial cards and structured credit that offer the same ease, while unlocking the working capital they need to scale.

Supporting SMEs through partnerships

Mastercard equips Nigerian SMEs and innovators with the comprehensive tools, financial solutions, and security capabilities required to compete in a digital-first economy.

To drive digital inclusion, Mastercard is pioneering low-cost acceptance innovations. Through solutions such as Tap on Phone, QR Pay-by-Link and SME-in-a-Box, micro-merchants can transform everyday smartphones into secure payment terminals, eliminating the need for expensive hardware. For SMEs scaling internationally, Mastercard Move removes the friction from cross-border trade by facilitating near-real-time remittances.

This ecosystem growth is further accelerated by Start Path and Product Express, Mastercard’s dedicated engagement programs that enable local fintechs to rapidly build and launch customized products, including instant virtual cards and open banking capabilities.

As digital transactions increase, Mastercard ensures ecosystem safety through advanced security infrastructure.

The company embeds tokenization into digital payments to protect sensitive data, while the Mastercard Trust Center provides small businesses with free, world-class resources to strengthen their cybersecurity defenses.

The Mastercard SME Confidence Index highlights a community of entrepreneurs eager to expand, and Mastercard remains committed to deploying scalable solutions and capability-building initiatives that foster a more inclusive and dynamic digital economy.

The post Mastercard: 81% of Nigerian SMEs Expect Growth in the Year Ahead appeared first on Tech | Business | Economy.

The investment is expected to contribute to job creation and long-term private sector development.

Sri Lanka has faced a period of economic challenges following several years of financial instability which have constrained access to financing for businesses and households.

MSMEs represent a significant share of employment and economic activity, yet many businesses still lack access to affordable long-term financing, particularly outside major urban areas.

“Access to finance is critical for MSMEs to invest, grow and create jobs. At a time when long-term funding remains constrained in Sri Lanka, this investment will help increase funding for smaller businesses while also supporting the transition to more sustainable transport. LB Finance’s focus on MSMEs and extensive presence outside Colombo will help reach businesses that are often overlooked by traditional lenders,” says Björn Areskog, investment director at Swedfund.

Swedfund’s investment will enable LB Finance to expand lending to MSMEs across Sri Lanka, including rural businesses and women-led enterprises.

A portion of the financing is made available to loans for electric and hybrid vehicles used by MSMEs, contributing to reduced emissions and more sustainable transport solutions.

Swedfund will also support LB Finance in strengthening its environmental and social risk management systems and climate related lending practices.

The post Swedfund Invests $15 million to Expand Access to Capital for MSMEs in Sri Lanka appeared first on Tech | Business | Economy.

Yet behind the term sheets and handshakes, a quietly damaging pattern is taking hold. Kenyan entrepreneurs are entering cross-border partnerships without appreciating one uncomfortable reality: a poorly structured deal can transfer effective control of a business long before the founder realises what has happened.

Across the market, SMEs are routinely surrendering equity leverage, intellectual property rights and governance control through shareholder agreements they barely negotiated, and in some cases, barely read.

The problem is rarely the investment itself. It is the legal scaffolding beneath it.

A Cautionary Court Ruling

A recent High Court decision brought this danger into sharp focus. Minority shareholders moved to court alleging oppressive conduct by majority shareholders, including exclusion from governance, insider dealings and breaches of fiduciary duty.

The court found, however, that the shareholders had years earlier signed agreements requiring all disputes to be resolved through international arbitration seated in Mauritius.

In effect, they had unknowingly signed away their preferred route to justice in the moment they were celebrating their deal.

“They had unknowingly signed away their preferred route to justice in the moment they were celebrating their deal.”

That ruling is not an anomaly. It reflects a growing trend in cross-border ventures involving Kenyan founders.

Foreign investors typically arrive with sophisticated legal advisers and transaction teams. Local entrepreneurs, eager for capital and growth, tend to focus on valuation and funding timelines, overlooking governance provisions buried deep within transaction documents.

The court reaffirmed that carefully drafted shareholder agreements can override other governance instruments entirely, channelling disputes into foreign arbitration forums.

The Intellectual Property Blind Spot

The vulnerabilities extend well beyond dispute resolution. Intellectual property protection remains a critical blind spot in Kenyan cross-border transactions, and one of the least appreciated sources of value erosion.

Many founders contribute far more than equity into a partnership. They bring proprietary software, customer networks, operational systems, local market intelligence and brand equity built over years. Where agreements fail to clearly assign and protect ownership of these assets, they can gradually migrate into offshore holding companies or joint venture vehicles controlled elsewhere.

The result is a founder who continues to operate the business while no longer owning its most valuable components.

Governance is Not a Legal Luxury

A separate decision by Justice Wilfrida Okwany similarly underscored the vulnerability of minority shareholders where governance structures are poorly designed.

The court examined how majority-controlled companies can sideline minority investors through exclusion from management, dilution of shareholding and abuse of voting power.

The broader message from the bench is becoming increasingly clear: governance rights are not technical legal formalities. They are commercial survival tools.

Kenyan SMEs and founders must therefore begin treating legal structuring as strategic infrastructure, not an afterthought to be addressed once the money is in the bank.

What Founders Must Scrutinise Before Signing

Before entering any cross-border partnership, founders should give close attention to several provisions that are routinely underweighted: board composition and voting thresholds; dispute resolution clauses and the jurisdiction they designate; intellectual property ownership and assignment provisions; dilution protections and anti-dilution mechanisms; and exit rights, including drag-along and tag-along provisions.

Equally important is understanding which country’s laws govern the transaction. Just because a deal is negotiated and concluded in Nairobi does not mean Kenyan law applies. Many cross-border agreements default to English or Mauritian law, a detail with significant practical consequences when disputes arise.

It is worth noting that robust legal frameworks do not deter investment, they attract it. Sophisticated investors consistently prefer businesses with properly structured governance systems because they reduce uncertainty and the prospect of future conflict.

“Capital may build a business, but control is preserved in the fine print.”

The most dangerous words in business remain: “We’ll sort it out later.” By the time a dispute surfaces, the agreements have already allocated power, rights and remedies,  usually with ruthless precision.

In today’s cross-border economy, the founders who endure will not necessarily be those who secured the largest investment cheques. They will be those who negotiated the strongest protections before putting pen to paper.

*The writer is a partner at G&A Advocates LLP, a firm with two decades of experience advising on infrastructure, capital markets, and regulatory law across East Africa.

The post The Fine Print That is Costing Kenyan SMEs their Businesses appeared first on Tech | Business | Economy.

The visit, spanning Abuja and Kaduna, underscored the breadth and depth of the UK–Nigeria Strategic Partnership and marked a significant step towards both countries’ shared priorities.

 The UK–Nigeria Growth Programme

The centrepiece was the meeting with Mr. Taiwo Oyedele, Nigeria’s Minister of Finance and Coordinating Minister of the Economy.

During their meeting, they discussed the new UK–Nigeria Growth Programme. Over three years, it will accelerate economic transformation, unlock private investment and support Nigeria’s transition from macroeconomic stabilisation to sustained, reform-led growth.

Alongside the Growth Programme, the UK announced deeper collaboration on Nigeria’s digital economy through the SPRIRET initiative, delivered under the UK’s Digital Access Programme. SPRIRET will support digital governance reforms across five Nigerian states, reducing regulatory barriers and enabling greater investment and innovation in broadband, digital services and emerging technology.

Mr. Taiwo Oyedele, the minister of Finance and Coordinating Minister of the Economy, said:

“We continue to value the UK–Nigeria relationship, one of the most important partnerships for both our countries. Today, that relationship extends beyond traditional ties and now focuses on development, growth, and shared prosperity.

“The UK–Nigeria Growth Programme helps bring this partnership to life, supporting capital market development, technology investment, small businesses, and technical assistance. We look forward to seeing how these opportunities deliver lasting benefits and drive progress for both countries.”

Trade and bilateral ministerial meeting

During the visit, Baroness Chapman met with the Minister of Industry, Trade and Investment, Dr Jumoke Oduwole. Discussions covered progress under the Enhanced Trade and Investment Partnership (ETIP), including boosting exports via the Developing Countries Trading Scheme, fintech and capital markets links.

Kaduna: building on two decades of partnership

In Kaduna, Baroness Chapman met with Governor Uba Sani to take stock of over 20 years of UK–Kaduna partnership and explore how cooperation can deepen shared priorities.

She heard from the business community and key institutional investors about their investment aspirations and the role of the UK in supporting investment mobilisation and enabling climate finance.

She met with community animal health workers and livestock breeders to discuss the UK’s support on breeding techniques, animal health and livestock vaccines.

She also visited Unguwan Sanusi Primary Health Care Centre, which serves approximately 20,000 people in Kaduna South, hearing directly from patients and frontline health workers about the impact of UK-supported health programmes.

The post UK Unveils £15 million Growth Programme for Nigeria appeared first on Tech | Business | Economy.

The upper chamber concurred with the House of Representatives on the proposed legislation, which establishes a legal and regulatory framework for debt factoring, a financing mechanism that allows businesses to convert unpaid invoices and credit sales into immediate working capital without resorting to conventional bank loans.

Leading the debate, Senate Leader Opeyemi Bamidele, said the legislation would create an enabling environment for alternative financing and strengthen liquidity for businesses nationwide.

“The Factoring Assignment and Receivable Financing Bill 2026 seeks to create a regulatory framework that would facilitate the development of debt factoring as an alternative means of financing for domestic and international trade in Nigeria and provide an enabling environment for it to thrive,” Bamidele explained.

He added that the bill defines the framework governing factoring contracts between sellers and financiers, clearly setting out the rights and obligations of all parties involved.

The proposed legislation’s commercial significance was sharpened by the intervention of Senator Adetokunbo Abiru (Lagos East), Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, who described the legislation as a critical lifeline for small businesses suffocating under liquidity constraints.

Abiru told the chamber that African factoring, driven significantly by the African Export-Import Bank (Afreximbank), had grown into a market exceeding $50 billion, yet Nigeria, Africa’s largest economy, remained a marginal player.

He said,

“The size of that market today is in excess of $50 billion, and Nigeria’s share is under one per cent.”

He noted that Egypt and Morocco had already reaped substantial gains from factoring frameworks similar to what the bill proposes.

“Passing this legislation will support our MSMEs in converting credit sales into cash without resorting to conventional borrowing arrangements,” Abiru added.

In practical terms, the law would allow businesses holding unpaid invoices to sell those receivables to a factoring company in exchange for immediate cash, easing the cash flow pressures that have long stunted growth among small enterprises.

The bill also modernises the legal architecture governing commercial transactions and is expected to enhance Nigeria’s competitiveness in regional and global trade.

Following unanimous support from lawmakers, the bill was subjected to clause-by-clause consideration in the Committee of the Whole before being passed and forwarded for presidential assent.

The post Senate Opens Door to $50bn Funding Market for Nigerian SMEs appeared first on Tech | Business | Economy.

Founders who have been bleeding customers, watching margins shrink, and losing sleep over cash flow, are suddenly breathing easier. Not because they fixed anything, but because they just signed up for an AI tool.

They’ve convinced themselves that this is the turning point. I want to gently, but honestly, tell you: it isn’t.

AI Is a Multiplier, Not a Miracle

Here’s the thing about tools: they amplify what’s already there. A sharp machete clears a path faster. A blunt one just tires your arm out more efficiently.

If your business has a clear value proposition, a product people genuinely want, and a team that understands your customers, AI will make you faster, leaner, and more competitive.

But if your business is built on shaky ground, like wrong pricing or a product no one truly needs, AI will help you do all of that at scale. That’s not a win but a faster road to the same dead end.

The Real Problems AI Cannot Fix

1. A Product the Market Doesn’t Want

In Lagos, a founder I know spent six months building an AI-powered inventory management app for small retailers. Brilliant interface, smart reordering logic, slick automation.

He kept tweaking the AI features while consistently ignoring the feedback he kept getting from traders at Balogun Market: “We don’t trust software with our stock numbers.”

The trust problem was cultural and relational. No algorithm was going to solve that. The app folded. Before you automate anything, ask yourself honestly: Do people actually want what I’m selling? If the answer requires a long explanation, something is wrong.

2. Broken Unit Economics

If you’re selling a product for ₦5,000 and it costs you ₦6,000 to deliver, including your time, logistics, and overhead, you don’t have a business. You have an expensive hobby.

AI can help you reduce some operational costs, yes. But it cannot restructure a pricing model that was wrong from the start. The math has to work without the technology first.

3. A Leaky Customer Funnel

Some businesses are excellent at attracting customers and terrible at keeping them. They spend money on ads, bring people in, and then lose them to poor service, slow responses, or broken promises.

Adding an AI chatbot to a service experience that was already frustrating people is like putting a fresh coat of paint on a cracked wall. It looks better for about a week. Fix the experience first. Then automate it.

What You Should Do Before Reaching for AI

Start by sitting with your numbers; just honest numbers. Where are you actually making money? Where are you losing it? Talk to five customers who stopped buying from you and five who keep coming back. The contrast will tell you more than any dashboard ever will.

Then look at your core operations. Which parts are slow or inconsistent because of how you designed them, not because of a lack of technology? Those are your real problems. Solve them with process and clarity first. When things are working well manually, then you automate.

AI Works When the Foundation Is Solid

The businesses getting the most from AI right now are not the ones that were struggling and needed saving. They are the ones that already had something working and used AI to do more of it, faster.

A Nairobi-based logistics startup reduced customer complaints by 40% using an AI routing tool. But before the tool, they had already spent a year rewriting their delivery protocols and training their drivers. The AI didn’t create that discipline; it rewarded it.

Fix the Business First

Technology has always been good at one thing: making a working system more efficient. It has never been good at making a broken one suddenly work.

So, before your next AI subscription, ask yourself the harder question: If this tool disappeared tomorrow, would my business still have something worth saving?

If the answer is yes, go ahead and use every tool available to you. If the answer makes you uncomfortable, that discomfort is pointing directly at the real work that needs to be done. Do that work first. The tools will still be there when you’re ready.

*Tony Ajah is a Business Growth Strategist, and the author of BUSINESS SENSE, and ON BECOMING AN ENTREPRENEUR. He maintains a personal blog, where he shares proven business ideas and principles for SMEs.

The post No AI Can Save a Business Built on the Wrong Model appeared first on Tech | Business | Economy.

This was highlighted on Tuesday, during a visit hosted by the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) to the MTN head office by Angola’s INAPEM, the National Institute of Support for Micro, Small and Medium Enterprises.

The delegation was led by its Chairman, Mr. Bráulio Augusto.

The delegation was focused on studying the success of the MTN and SMEDAN mySMEville partnership. The initiative targets four core areas: information, funding, infrastructure, and markets, to support a sector that contributes 48% of Nigeria’s GDP but remains largely underserved.

mySMEville moved quickly from a strategic idea (the MOU was signed in November 2025) to a continental success.

After a pilot in Lagos onboarded 200 businesses in December, the platform rapidly grew to include over 2,600 businesses nationwide by May 2026.

This rapid expansion is essential given that 80% of Nigerian SMEs are currently informal and only 3.9% access formal credit, leaving a staggering $158 billion annual financing gap.

Emphasising the strategic necessity of this collaboration, Lynda Saint-Nwafor, Chief Enterprise Business Officer at MTN Nigeria, stated:

“At MTN Business, our ambition is clear: to serve as the leading technology partner enabling Africa’s enterprises to scale, compete, and create sustainable impact. We are intentionally building platforms that matter, solutions that scale, and ecosystems that accelerate inclusive economic growth across the continent.

“This is why initiatives such as mySMEVille are strategically important to us. SMEs remain the backbone of our economy, driving innovation, creating jobs, and strengthening national competitiveness. Through our partnership with SMEDAN, we are focused on unlocking the full potential of these businesses by providing access to guidance, digital tools, market opportunities, financing ecosystems, and workforce support.”

Supporting this view, Dr Charles Odii, director-general of SMEDAN, said that the initiative represents the future of business on the continent, asserting that “What we are witnessing here is a formidable force for economic progress. Through this deliberate Public-Private Partnership, Nigeria is aligning its public and private sectors to lead the way for Africa.”

Olatunbosun Agosu, Senior Specialist, ICT Segment Management, MTN Business demonstrated with a live demo, how the mySMEville platform, a joint effort by MTN and SMEDAN, is the “one-stop orchestrator” for Nigeria’s 40 million small businesses.

The platform is an intuitive, centralised platform that bridges the $158 billion funding gap and digital divide. By aggregating diverse partners, it gives entrepreneurs direct access to funding, infrastructure (like solar power), e-commerce tools, and essential growth information.

INAPEM’s Chairman, Mr. Bráulio Augusto, confirmed that Angola intends to adapt the framework to its own economic reality.

Reflecting on the visit, the Chairman stated during his remarks, “The key thing I learned here is the strength of the public and private sector partnership. mySMEville clearly shows what’s possible, and we will absolutely use these insights as we adapt this model back home in Angola.”

Looking ahead, the partnership aims to reach a monumental target of 5 million MSMEs through the mySMEville Academy, e-commerce integrations, and national policy advocacy.

As the platform continues to grow into a “one-stop shop” for resources, it’s clear that Africa’s future depends not on luck, but on the smart, collaborative work of partners like MTN and SMEDAN.

The post mySMEville: How MTN and SMEDAN are Closing Nigeria’s $158 Billion Funding Gap for 40 Million MSMBs appeared first on Tech | Business | Economy.

Industry stakeholders say high financing thresholds, currency volatility, fragmented regulations, and inefficient cross-border payment systems continue to constrain the growth of exporters and businesses on the continent.

They made the suggestions in Lagos, recently, during the 6th Africa Finance Festival 2026 gala. Hosted by InstinctWave and CFO Magazine, the event focused on digital finance, trade growth, innovation, and Africa’s economic future.

Held at the LagosOriental Hotel, the evening featured networking sessions, executive engagement, and award presentations recognising individuals and organisations shaping business growth across the continent.

Akin Naphtal, group CEO of InstinctWave, described the festival as a leading platform for finance leadership and economic dialogue in Africa.

“Over the course of the festival, we have had the privilege of hearing from outstanding keynote speakers, panelists, regulators, investors, and finance executives,” he said.

He added,

“Tonight, however, we gather for a different but equally important purpose: to celebrate excellence.”

He noted that the awards were created to honor institutions and professionals driving innovation, discipline, and impact across Africa’s finance sector.

Bernice Awube Armah-Ampofo, director of Finance at the Ghana Export Promotion Authority, highlighted barriers facing exporters and SMEs across Africa.

“Accessing trade finance is cumbersome, and the thresholds are quite high for SMEs,” she remarked, citing high capital costs, currency volatility, fragmented regulations, and weak cross-border payment systems as key challenges.

She urged stakeholders to leverage the fintech ecosystem to close gaps in trade finance and payments through stronger regional collaboration.

The event also reflected the growing role of digital payments in Africa’s financial system. GSMA data shows mobile money transactions reached over $2.3 trillion globally in 2025, with Sub-Saharan Africa accounting for about two-thirds of total value, driven by rapid adoption across markets.

The figures underline how mobile platforms continue to expand access to financial services and support discussions on cross-border trade and financial inclusion raised during the event.

Beyond the formal speeches, the event also created room for business networking and collaboration among attendees.

Guests participated in interactive networking sessions designed to encourage new industry connections before the award presentations later in the evening.

Sponsors including MTN Nigeria, Ghana Export Promotion Authority, and other participating organisations maintained strong visibility throughout the gala.

Closing the event, Naphtal said, “Our vision remains bold, to continue to build the Africa Finance Festival into one of Africa’s most influential platforms for finance leadership, policy dialogue, innovation, and economic transformation.”

The post African SMEs Face High Trade Finance Hurdles, Ghana Official Warns appeared first on Tech | Business | Economy.

With this plugin, businesses in Nigeria can simplify how they invoice and collect payments while offering end-to-end financial management, and improving operational efficiency.

With the Monnify plugin, available in Zoho Marketplace, businesses can generate invoices in Zoho Books and select Monnify as their preferred payment gateway.

Customers are then directed to a secure Monnify checkout page where they can conveniently pay using Nigerian debit or credit cards, bank transfers, or other supported payment channels.

This plugin allows real-time reconciliation of payments within Zoho Books, helping merchants reduce administrative overhead, manual effort involved in recording payments, and gain better visibility into their cash flow.

“We believe that payments should be seamless, efficient, and reliable,” said Ifeanyi Duru, senior vice president of Enterprise Network Sales at Moniepoint Inc. “The Monnify plugin for Zoho Books helps simplify how businesses receive payments while offering customers multiple options to settle invoices. With this, entrepreneurs and SMEs can focus on running their businesses with confidence that their collections and financial records are always in sync.

“At Zoho, our goal is to provide comprehensive, and connected financial ecosystem that reduces operational complexity for growing businesses,” said Prashant Ganti, vice president of Global Product Strategy, Finance and Operations BU, Zoho. “As Nigerian businesses scale, they need their accounting and payment systems to work together seamlessly. With Zoho Books and Monnify, businesses can move from invoicing to collections without the friction, while maintaining accurate financial records with better visibility into their cash flow.”

The post TeamApt Brings Monnify Payment Plugin to Zoho Books Users appeared first on Tech | Business | Economy.

Their role is both significant and indispensable. Yet, despite this considerable contribution, many continue to operate below their full potential, constrained not by ambition or capability, but by structural barriers that limit their ability to scale.

This tension between potential and constraint was at the heart of discussions I participated in last month in London, at the “Leveraging Youth Development, Innovation and Entrepreneurship” event on the sidelines of President Tinubu’s UK–Nigeria State Visit.

Convened in partnership with Nigeria’s Ministry of Youth Development, the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), and the UK Department for Business and Trade, the gathering brought together policymakers, investors, and operators from both countries.

The message was clear: Nigeria’s SMEs and youth-led businesses represent one of the country’s most powerful levers for economic transformation, but unlocking that potential will require more deliberate and coordinated support.

As things stand, SMEs in Nigeria continue to face a set of well-defined and persistent constraints. Access to financing is still uneven, particularly for businesses without the collateral or operating history traditional institutions require.

Market access remains fragmented, making it difficult for many to reach customers beyond their immediate environment.

Infrastructure challenges, from inconsistent power supply to limited logistics networks, continue to drive up the cost of doing business, while uneven access to digital tools leaves many operating without the systems needed to scale effectively.

There is, however, a strong and concentrated effort to address these issues. SMEDAN is increasingly focused on providing practical support, connecting businesses to mentorship, improving access to funding, and working to close some of these structural gaps.

In parallel, the Ministry of Youth Development is investing in long-term capacity building through initiatives like the Nigerian Youth Academy, which has already enrolled over 400,000 young people across digital and physical platforms.

This domestic effort is also being reinforced by growing international engagement, particularly from the United Kingdom.

As a global financial hub, the UK plays a huge role as a supporting partner by bringing depth in capital markets, regulatory clarity, and access to global networks that Nigerian businesses can leverage as they scale.

This corridor has clearly been successful, with London now hosting more Africa-headquartered companies on its Stock Exchange than New York, and UK investors accounting for a significant share of capital inflows into Nigeria, supporting an ecosystem that has produced 75% of Africa’s unicorns.

Importantly, this engagement is evolving beyond capital into more structured forms of collaboration. Initiatives such as the UK–Nigeria Tech Hub continue to build talent and support founders, while digital access programmes are expanding connectivity and enabling participation in the digital economy.

The planned UK-supported startup sandbox in Nigeria is particularly noteworthy, as it reflects a shift toward creating environments where innovation can be tested and scaled within a supportive regulatory framework.

However, while the alignment between local and international governments and their agencies is encouraging and clearly underscores and validates the strength and potential of Nigerian startups, it cannot carry the full weight of what is required.

Government initiatives and international partnerships can lay the groundwork, but sustained growth will depend on how actively the private sector builds on that foundation.

What is needed is a broader, ecosystem-wide commitment by the private sector to build the structures and services that enable growth, particularly for SMEs. Without this, many SMEs will remain constrained, isolated, and unable to compete at scale.

For example, take financial services, particularly cross-border payments, which is an area where progress has been made, but not yet at the pace required. For many SMEs, the ability to move money efficiently across borders remains a significant constraint.

Traditional banking systems are often not designed with smaller businesses in mind, requiring extensive documentation, limiting access to foreign exchange, and introducing delays that can stretch transactions over several days or even weeks.

In response, fintech providers like Verto, are building more tailored alternatives, solutions that remain secure and compliant, while simplifying onboarding for SMEs and enabling access to faster, more cost-effective payment rails.

Reducing this friction is critical, as it allows businesses to operate more efficiently and engage more confidently in international trade.

The same approach needs to be applied more broadly. Access to funding cannot continue to depend on collateral-heavy models that exclude otherwise viable businesses; more practical indicators like cash flow and transaction history need to be taken seriously.

At the same time, technology should work for SMEs, not overwhelm them, tools need to be simple, affordable, and built around how these businesses actually operate day to day.

Market access also has to become more deliberate, with clearer and more reliable routes into supply chains, export markets, and procurement opportunities, rather than leaving businesses to navigate these paths alone.

Alongside this, addressing everyday infrastructure constraints, whether through shared logistics, embedded services, or practical partnerships, can significantly reduce the operational burden that slows growth.

At the end of the day, supporting SMEs is not an act of charity; it is a mutually beneficial business opportunity with wide-reaching economic outcomes.

These businesses are already creating value at scale, driving employment, expanding markets, and building solutions to real challenges. The opportunity now is to ensure the environment around them evolves just as deliberately, to ensure sustained growth and scale.

The post SMEs Drive Nigeria’s Economy, but the Private Sector Must Back Them Properly appeared first on Tech | Business | Economy.