From Luxury to Necessity: Nigerians opt for phone swapping instead of buying new ones

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Nigerians are extending the lifespan of their smartphones due to the rising costs fueled by inflation and naira devaluation, a trend observed by both consumers and analysts. The significant currency adjustment in June 2023, which slashed over 70% off the naira’s value by mid-2024, has led to a substantial increase in the price of entry-level smartphones.

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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 said. He added that 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 warned.

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. 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 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.

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 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.”

Nigeria remains the largest phone market in Africa, accounting for 14% of the region’s share, according to Canalys. Transsion Holdings, maker of Tecno, Infinix, and Itel, controls about 45% of the market. Despite the economic challenges, smartphone sales continue, albeit at a slower pace, with many consumers opting for financing options to afford new devices.

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