The smartphone market in Nigeria is facing a significant downturn, driven primarily by economic challenges including high inflation, currency instability, and slow GDP growth.
A report by techinafrica.com reveals that these factors have considerably diminished the purchasing power of Nigerian consumers, resulting in a marked decrease in demand for new smartphones.
Consequently, smartphone shipments to Nigeria saw only a 5% increase in the second quarter of 2024, a sharp contrast to the robust double-digit growth recorded in previous quarters.
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Ifeanyi Akubue, President of the Phone and Allied Product Dealers Association of Nigeria (PAPDAN), remarked that “the rising dollar prices have led to higher costs for imported smartphones,” which has further compounded the issue.
Economic pressures have led many Nigerians to prioritize essential goods and services over discretionary purchases like smartphones.
In response, device financing has emerged as a practical solution, allowing consumers to spread the cost of smartphones over time instead of paying the full amount upfront.
This financing model, available through e-commerce platforms, gadget stores, and banks, is gaining traction among Nigerians.
Platforms such as Easybuy, CDCare, Jumia Flex, Slot Nigeria, and M-KOPA are providing flexible payment options that generally require an initial deposit followed by instalments, making smartphones more accessible to consumers.
Despite the overall market downturn, Nigeria remains Africa’s largest smartphone market.
However, its growth rate has fallen behind other regions, such as North Africa, where countries like Algeria and Egypt have experienced more vigorous expansion.
