In its six-month result for the period ended June 2024, MTN Nigeria reported that smartphone penetration grew by 55.9 percent, and its 4G network population coverage was up 82 percent. According to GSMA, a global tech body, smartphone penetration in urban Nigeria was 59 percent and 26 percent in rural areas in 2023.
This increase in the number of smartphones is fuelling the consumption of digital services, social media, and streaming content. Also, data consumption through smartphones has ensured that the country stays above the regional average, with about 29 percent of Nigerians (about 58 million) using the internet consistently, according to the GSMA.
GSMA notes that most Nigerians (85 percent) use mobile internet to make or receive video calls, 75 percent to watch free-to-access online videos, and 54 percent to listen to free music online.
The rise in smartphone penetration has been fuelled by entry-level Chinese phones. Arnold Ponela, a senior research analyst at IDC, said, “Nigeria saw robust growth fuelled by the success of Transsion brands and Xiaomi, particularly in the entry-level segment, which significantly boosted shipments.”
According to the International Trade Center (ITC), Nigerians have spent $3.82 billion on telephones, including smartphone imports, since 2019, with $2.83 billion (74.09 percent) coming from China. Manish Pravinkumar, senior consultant for Middle East and Africa (MEA) at Canalys, stated, “Chinese phones stand out in the Nigerian market due to their affordability, features, and targeted marketing strategies.”
The increases in sales of Transsion brands, makers of Tecno and Infinix, in the country and continent at large, have propelled the brand to the number fourth phone vendor in the world, accounting for 15 percent of the global smartphone market.
Despite this growth, Nigeria continues to have a high internet usage gap. In a new report, the GSMA revealed that 120 million Nigerians do not have access to mobile internet, largely because it is not affordable.
This high cost of smartphones has been tied to rising economic hardship in the country. Adeolu Ogunbanjo, president of the National Association of Telecoms Subscribers (NATCOMS), stated, “What is happening now (high cost of things) isn’t peculiar to ICT, but mobile phones are a need.”
Pravinkumar at Canalys noted the rising cost of living, driven by high inflation, has weakened the purchasing power of many Nigerians and increased demand for entry-level smartphones. However, he stated that the Nigerian smartphone market experienced growth in 2024.
Industry experts noted that the country’s young population and growing consumption of digital services would continue to fuel its smartphone penetration growth.
Temitayo Jaiyeola @BusinessDay
