Nigerians are holding onto their smartphones longer, as soaring prices driven by inflation and naira devaluation dampen the usual yearly upgrade trend, consumers and analysts have said.
Africa’s most populous nation undertook a major currency devaluation in June 2023, slashing over 70 per cent off the naira’s value by mid-2024, one of the most significant currency adjustments globally in recent years.
The price of entry-level smartphones has nearly doubled over the past year, according to dealers at Lagos’ Computer Village, one of Nigeria’s largest electronics markets. As a result, more consumers are choosing to repair their devices or turn to used phones to manage rising costs.
“People are now economical with their financial capacity. The fact that they are not changing phones shows poor purchasing power,” development economist Iliyas Aliyu told The PUNCH.
He said the trend reflects broader issues of weak consumer spending and declining purchasing power. “If people stop buying smartphones, it will reduce e-commerce transactions, bring down demand, and eventually impact GDP,” Aliyu said.
Nigeria spent $3.82bn on phone imports between 2019 and 2023, with $2.83bn of that from China, according to the International Trade Centre. But retailers say sales have slowed significantly in recent months, as the naira’s devaluation and high inflation raise the cost of imports and reduce disposable income.
Williams Ideh, a dealer in Android devices, said while sales haven’t significantly improved, there has been a surge in consumers moving towards buying used phones.
“What we are seeing now cannot be compared to what we used to have a few years ago, when people could just decide to change or upgrade their phones to the latest model,” Ideh said.
“It’s not like people are not buying new smartphones; they are, but based on stronger needs, not just luxury.”
A phone technician in Lagos, who declined to be named, said more customers now visit to fix screens or replace batteries rather than buy new models.
A bank employee, Blessing Osagie, said she has used her Nokia phone for three years. “It’s not that I can’t afford a new one, but prices are outrageous. My current device still works, so I’ll keep using it,” she said.
Nigeria remains the largest phone market in Africa, accounting for 14 per cent of the region’s share, according to Canalys, one of the leading research firms. Transsion Holdings, maker of Tecno, Infinix, and Itel, controls about 45 per cent of the market.
To cope with reduced purchasing power, many Nigerians are turning to smartphone financing schemes such as Transsion’s Easy Buy, Palmpay, Klump, and others that allow installment payments over months.
These schemes have gained traction as they help spread the high upfront costs, enabling more consumers to afford smartphones despite economic pressures.
“These plans are helping people spread the cost over time,” said Ebere Okoro, a phone dealer in Lagos. “But many still walk away when they hear the price.”
