Nigeria’s smartphone market contracts amid economic pressures

Nigeria’s smartphone market contracts amid economic pressures

The wider African smartphone market shipped 19.4 million units in Q1 2025, marking a 6% year-on-year increase. Despite Nigeria’s decline, the continent remains on a growth path, driven by consumer demand for affordable, feature-rich smartphones and continued digital adoption across major markets.

Manish Pravinkumar, Principal Analyst at Canalys, highlights that mid-tier smartphones — priced between $100 and $199 — dominate the landscape, accounting for 42% of total shipments in the quarter.

“Consumers remain under pressure from rising living costs and bureaucratic inefficiencies in several African economies, which will dampen or delay critical investment plans,” Pravinkumar says.

Smartphones: 4G dominates, 5G adoption remains slow

4G smartphones represent 85% of total shipments across the continent in Q1 2025, according to the report. In Nigeria, where 5G spectrum licences were issued by the Nigerian Communications Commission (NCC) in 2021, adoption remains low. Infrastructure limitations and high device costs mean 5G services by MTN and Airtel are mostly restricted to select urban centres.

“The market shows signs of resilience, with 4G devices accounting for 85% of shipments and the mid-tier segment (US$100 to US$199) commanding a 42% share,” Canalys notes.

Smartphone financing and market access

Access to devices continues to be supported by smartphone financing partnerships. In Nigeria, EasyBuy enables consumers to purchase devices on credit. However, Canalys flags the growing reliance on financing as a potential risk for consumer debt sustainability.

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Nigeria’s smartphone market recorded a 7% contraction in the first quarter of 2025, even as Africa posts its eighth consecutive quarter of growth, according to new findings by technology market analyst firm, Canalys. Image credit: Image FX.

Xiaomi records a 32% year-on-year increase, buoyed by strong performance in Nigeria and Egypt, driven by its Redmi 14C and A-series models. Honor records the highest growth in the quarter, with a 283% year-on-year surge, leveraging its premium Magic lineup and bundled 5G offers with MTN and Vodacom.

Transsion leads despite dip; Xiaomi and Honor surge

Transsion Holdings, parent of Tecno, itel, and Infinix, retains its lead in Africa with a 47% market share, despite a 5% year-on-year dip in shipments to 9 million units in Q1. Its three-tier distribution model — national distributors, regional wholesalers, and credit-enabled micro-retailers — remains dominant, though competitors are replicating the strategy.

Samsung holds 21% market share and sees gains, particularly in Egypt and South Africa. While pushing high-end models, its Galaxy A06 and A16 budget offerings account for 60% of total shipments.

Xiaomi records a 32% year-on-year increase, buoyed by strong performance in Nigeria and Egypt, driven by its Redmi 14C and A-series models. Honor records the highest growth in the quarter, with a 283% year-on-year surge, leveraging its premium Magic lineup and bundled 5G offers with MTN and Vodacom.

OPPO sees a 17% rise, powered by local assembly efforts and its omnichannel push through A-series and Reno models.

Outlook: Modest growth forecast amid economic headwinds

Despite macroeconomic instability, including poor infrastructure, rising debt, and global trade tensions, Canalys projects that Africa’s smartphone market will grow 3% overall in 2025.

“While 4G and early-stage 5G deployments offer promise, they require high capital commitments,” Pravinkumar says. “Urban youth, driven by digital aspirations, represent a strong demand base. Yet, limited disposable income and growing reliance on financing continue to constrain broader market stability.”

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