In the face of economic challenges in Nigeria, the smartphone market in the country is currently experiencing a significant downturn as its shipment plunged in the second quarter of 2024.
According to reports, these challenges 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.
Commenting on this, Ifeanyi Akubue, President of the Phone and Allied Product Dealers Association of Nigeria (PAPDAN), stated that 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.