Nigeria’s Smartphone Market Rebounds: Financing, Affordable Devices, and a Young Population Drive Recovery

Nigeria’s smartphone market finally caught its breath in Q2 2025, growing 10% after a difficult start to the year, according to fresh data from Canalys. The rebound is the strongest since early 2024 and shows how a mix of easing inflation, a steadier naira, and aggressive financing schemes are reshaping mobile access in Africa’s largest economy.

For millions of Nigerians, smartphones are not a luxury accessory. They are the primary gateway to the internet, banking, jobs, and entertainment. By July 2025, the country counted more than 138 million mobile internet connections, compared to fewer than 320,000 fixed broadband links. With less than one-fifth of households owning a computer, the smartphone isn’t just the first screen. For most people, it’s the only screen.

Why the rebound matters

The last two years have been brutal for phone buyers. The Central Bank’s 2023 reforms triggered a naira crash, driving up the cost of imported devices. Market growth slowed sharply in late 2024, and by Q1 this year, sales had dropped 7% as rising food inflation squeezed household budgets.

The second-quarter rebound signals that conditions are changing. Inflation is easing, the naira is stabilising, and crucially, financing options are expanding. Across Africa, smartphone shipments grew 7% in Q2, but Nigeria outpaced the continent’s average, underlining its role as one of the region’s most resilient markets.

The battle for Nigeria’s next billion users

Nigeria is a young country, with over 60% of its population under 25. That demographic reality means demand for mobile connectivity will not fade anytime soon. Brands know this, and competition has been fierce.

• Transsion (Tecno, Itel, Infinix) still commands 65% of the market, particularly in the sub-$100 segment. Its formula is simple: low-cost devices designed for local needs, wide offline distribution, and a service network that makes after-sales support accessible even outside big cities. For many first-time buyers, Transsion is the entry point into the smartphone world.

• Samsung is fighting back by expanding upcountry retail presence, offering financing plans, and layering in services like Samsung Care+. Its focus on affordable Galaxy devices with features like AI and local-language support is helping it hold ground among aspirational buyers.

• Xiaomi is betting on partnerships, such as its deal with MTN Nigeria to bundle Redmi devices with six months of bonus data. This strategy blends affordability with network loyalty, pushing deeper into rural areas through distributors and micro-retailers.

Financing is rewriting affordability

If there is one factor powering the rebound, it is device financing. Platforms like Easybuy, M-Kopa, Slot Nigeria, Jumia Flex, and even banks such as Access are making smartphones accessible through buy-now-pay-later and pay-as-you-go models. For many Nigerians who cannot afford a ₦150,000 phone upfront, spreading payments over time is the difference between sticking with a feature phone and finally upgrading.

This trend also reshapes digital inclusion. Smartphones open doors to mobile money, e-learning, telemedicine, and more. That makes financing more than just a sales tactic. It is a driver of Nigeria’s digital economy.

The road ahead

Challenges remain. Smartphones are still expensive relative to incomes, and nearly half of Nigeria’s mobile users still rely on feature phones. Urban penetration stood at 59% in 2023, while rural areas lagged far behind at 26%. Closing that gap will determine how quickly Nigeria can unlock the full benefits of a mobile-first economy.

Still, the trajectory is clear. With financing schemes scaling, brands localising their strategies, and a young population hungry for connectivity, Nigeria’s smartphone market looks set to keep rebounding. The second quarter of 2025 may mark the start of a steadier climb, not just a temporary recovery.