Running a business in Nigeria isn’t easy. Every week brings a new challenge. Fuel prices change. Electricity disappears. The naira shifts. Costs keep climbing. Yet, Nigerian business owners keep showing up.
That’s one of the biggest findings from the Miva MSME Mid-Year Report 2026. The report looked at how 130 businesses performed during the first half of the year. It measured more than just revenue. It examined productivity, operations, finance, innovation, and the business environment.
The result?
Nigerian MSMEs are still growing. They’re adapting. And they’re finding new ways to compete.
In This Post
Measuring Productivity Beyond Profit
Business success isn’t just about sales.
The Miva MSME Productivity Index (MPI) looks at five areas that influence business performance:
- Business Performance
- Productivity & Operations
- Finance & Investment
- Innovation & Digital Adoption
- Business Environment
Together, these pillars provide a broader picture of how businesses are performing and what factors are helping or slowing their growth.
Nigerian MSMEs Recorded a Strong Productivity Score
The report found an overall Miva MSME Productivity Index score of 74.6, placing participating businesses in the ‘Strong’ productivity category.
The findings suggest that many Nigerian businesses remained productive despite operating in a difficult economic environment.
Customer demand improved, businesses expanded their markets, and many entrepreneurs expressed confidence about future growth. At the same time, profitability continued to face pressure because rising operating costs reduced business margins.
Business Performance Ranked Highest
Among the five pillars, Business Performance recorded the highest score at 78.2.
According to the report, stronger customer demand, market expansion, and positive business confidence contributed to this result.
While businesses reported growth in sales, profitability remained comparatively weaker as inflation and higher production costs continued to affect earnings.
Innovation Continues to Strengthen Businesses
Technology remained one of the biggest strengths for Nigerian MSMEs.
The Innovation & Digital Adoption pillar recorded a score of 77.4, making it the second-highest performing area in the report. Businesses reported that digital technologies improved customer acquisition, marketing effectiveness, and overall competitiveness.
The report also notes that although many businesses are investing in employee training, digital skill shortages remain a challenge, particularly for micro-enterprises.
Finance Remains the Biggest Challenge
While several indicators improved, access to finance remains a major concern.
The Finance & Investment pillar recorded the lowest score at 69.6. Businesses identified high borrowing costs, limited access to affordable credit, and cash-flow constraints as key barriers to expansion.
These challenges continue to limit investment in equipment, business expansion, and employment.
Rising Costs and Electricity Continue to Affect Productivity
Operational productivity remained relatively strong, but businesses continued to face rising input costs and unreliable electricity.
The report identifies electricity supply as one of the most significant external constraints affecting enterprise productivity. Many businesses continue to rely on alternative energy sources, increasing operating costs and reducing profitability.
Inflation, exchange rate uncertainty, and production costs also remained significant concerns throughout the first half of the year.
Productivity Differs Across Sectors
The report also compared productivity across different industries.
The services sector recorded the highest productivity score, driven by stronger digital adoption and lower dependence on physical infrastructure.
Agriculture ranked lowest, with financing challenges, infrastructure gaps, and market access constraints affecting overall performance.
Looking Ahead to H2 2026
Businesses remain cautiously optimistic about the months ahead.
Respondents expect continued growth in customer demand, greater investment in digital technologies, and new market opportunities during the second half of 2026. However, inflation, energy costs, exchange rate volatility, and financing constraints remain key risks that could affect business performance.
To strengthen productivity, the report recommends continued investment in electricity infrastructure, more affordable financing for MSMEs, stronger digital infrastructure, entrepreneurship support programmes, and improved financial literacy. It also encourages businesses to invest in technology, strengthen financial management, diversify revenue streams, and continue building employee capacity.
Final Thoughts
The Miva MSME Mid-Year Report 2026 paints a balanced picture of Nigeria’s business environment.
The data shows that many MSMEs have remained productive by improving business performance, embracing innovation, and adapting their operations. At the same time, structural challenges such as limited access to finance, unreliable electricity, rising production costs, and policy uncertainty continue to affect growth.
With an overall productivity index score of 74.6, the report suggests that Nigerian MSMEs are building resilience even in a difficult operating environment. It also highlights the importance of coordinated support from government, financial institutions, development partners, and entrepreneurs to sustain productivity and unlock future growth.
Download a copy of the Miva MSME Mid-Year Report 2026 to study it in detail or compare it with last year’s mid-year report.