The Nigerian smartphone market is experiencing a significant downturn, primarily driven by economic challenges and rising prices.
As inflation soars and disposable income dwindles, many Nigerians are finding it increasingly difficult to afford new smartphones. However, device financing is emerging as a viable option, as a result, amid the current decline in smartphone demand.
According to Canalys, a leading technology market analyst firm, smartphone shipments into Nigeria grew by a mere 5% in the second quarter of 2024. This marked a sharp decline from the robust double-digit growth witnessed in previous quarters.
The persistent economic headwinds-including soaring inflation, currency volatility, and sluggish GDP growth-have significantly eroded the purchasing power of Nigerian consumers, forcing them to prioritise essential goods and services over discretionary purchases like smartphones.
We import our phones, and higher dollar prices mean higher prices, said Ifeanyi Akubue, president of the Phone and Allied Product Dealers Association of Nigeria (PAPDAN).
