The smartphone market in Nigeria is experiencing a significant downturn, primarily driven by economic challenges such as high inflation, currency instability, and slow GDP growth.
According to a report by techinafrica.com, these factors have drastically reduced the purchasing power of Nigerian consumers, leading to a notable decline in the demand for new smartphones.
As a result, smartphone shipments to Nigeria increased by only 5% in the second quarter of 2024, a stark contrast to the strong double-digit growth observed in previous quarters.
Ifeanyi Akubue, President of the Phone and Allied Product Dealers Association of Nigeria (PAPDAN), statedthat the rising dollar prices have led to higher costs for imported smartphones, further exacerbating the issue.
The economic strain has forced many Nigerians to prioritize essential goods and services over discretionary spending on smartphones.
In response to the challenges, device financing has emerged as a viable solution, allowing consumers to spread the cost of smartphones over time rather than paying the full amount upfront.
The financing model, offered by e-commerce platforms, gadget outlets, and banks, is becoming increasingly popular among Nigerians.
Platforms such as Easybuy, CDCare, Jumia Flex, Slot Nigeria, and M-KOPA are offering flexible payment plans that typically require an initial deposit followed by instalments, making it easier for consumers to afford smartphones.
Despite the overall market slump, Nigeria remains Africa’s largest smartphone market.
However, its growth rate has lagged behind other regions, such as North Africa, where countries like Algeria and Egypt have seen more robust expansion.
