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Revival of Nigeria’s Smartphone Market Amid Currency Stabilization
In the third quarter of 2025, Nigeria experienced a significant resurgence in smartphone shipments, which surged by 29%, fueled largely by a more stable naira exchange rate, according to insights from Omdia, a leading global technology market research firm. This marks the second consecutive quarter of recovery following a 10% growth in Q2 2025-the fastest expansion since early 2024. Factors such as easing inflationary pressures, currency stabilization, and innovative device financing options have collectively helped the Nigerian smartphone sector recover from the challenges faced throughout 2024.
Smartphones: The Primary Digital Access Point in Nigeria
Smartphones continue to serve as the main conduit for internet access in Nigeria, with the country recording approximately 140.36 million mobile internet subscriptions as of September 2025. Despite this impressive figure, nearly 60% of Nigerians remain offline, primarily due to the high cost of smartphones. The GSMA, a global telecom industry association, highlights that affordability remains a critical barrier preventing wider internet adoption across the nation.
Impact of Currency Fluctuations on Device Affordability
The volatility of the naira remains a significant challenge for the smartphone market. Since Nigeria imports nearly all its mobile devices, fluctuations in currency value directly influence retail prices. The Central Bank of Nigeria’s foreign exchange reforms in 2023 triggered a sharp depreciation of the naira, which in turn caused smartphone prices to spike, severely limiting consumer purchasing power. This led to a near stagnation in shipments, with growth slowing to just 1% in Q3 2024, a stark contrast to the 63% increase seen in Q4 2023.
Decline and Recovery in Telephone Imports
Data from TradeMap reveals that Nigeria’s telephone imports dropped from $704.76 million in 2023 to $467.70 million in 2024. However, the relative stabilization of the naira-trading between ₦1,450 and ₦1,500 per US dollar since early 2025-is beginning to positively influence import volumes and pricing. Omdia notes that the market’s 29% growth in Q3 2025 was driven by vendors ramping up imports and introducing refreshed smartphone models priced below $150, which encouraged consumers to upgrade devices in open-market retail channels.
Broader African Smartphone Market Trends
The upward momentum in Nigeria is reflective of a wider continental trend. Africa’s smartphone shipments rose by 24% year-over-year in Q3 2025, reaching 22.8 million units and ending a five-quarter decline. Key markets such as South Africa (31%), Nigeria (29%), Egypt (19%), and Kenya (17%) all posted robust double-digit growth rates.
Growth Across Price Segments
Omdia’s Principal Analyst, Manish Pravinkumar, highlighted a dual surge in smartphone demand across Africa during Q3 2025. Entry-level smartphones priced under $100 saw a 57% increase-the fastest growth in three quarters-while premium devices above $500 grew by 52%. This growth was largely propelled by TRANSSION, a major smartphone manufacturer, which achieved 25% year-on-year growth driven by strong demand in Algeria, Egypt, Morocco, Nigeria, Kenya, and South Africa.
Challenges Ahead for 2026
Despite the positive trends, Pravinkumar forecasts a 6% contraction in Africa’s smartphone market in 2026 due to mounting supply chain pressures. Rising costs of components (Bills of Materials), limited memory chip availability, increased shipping and insurance expenses, and ongoing currency weaknesses are expected to disproportionately impact the low-end 4G smartphone segment, which constitutes the bulk of demand across the continent.
Outlook for Nigeria and Digital Inclusion Efforts
For now, Nigeria and much of Africa appear to be on a recovery path, with hopes that this growth will translate into higher smartphone penetration rates. Policymakers are actively working to introduce affordable smartphones priced between $30 and $40 to the market, aiming to connect the estimated 600 million people across Sub-Saharan Africa who live within reach of 3G or 4G networks but have yet to access the internet. This initiative is critical to bridging the digital divide and fostering greater economic and social inclusion.
