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Nigeria, Ghana Smartphone Markets in Good Shape in 2019 as COVID-19 Casts a Dark Shadow

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Nigeria’s smartphone market grew 5.3% quarter on quarter (QoQ) in Q4 2019, according to the latest figures from global technology and consulting services firm International Data Corporation (IDC). This growth comes on the back of a 3.2% QoQ increase in Q3 2019 after the market suffered a slow H1 2019, which translated into a 3.5% year-on-year (YoY) decline for 2019 as a whole. Meanwhile, Ghana saw smartphone shipments increase 6.1% QoQ in Q4 2019 and 9.1% YoY for 2019. Combined, these two countries saw shipments of 12.6 million units in 2019.

The decline in Nigeria in H1 2019 was caused by the closure of airports February, which led to a considerable slowdown in imports. The extended campaigns for the 2020 general elections also impacted the market, while the dollar was also unstable during this same period, which had the effect of reducing smartphone shipments to the country.

Together, Transsion brands (i.e., Tecno, itel, and Infinix) held the biggest market share in 2019 as they launched a number of successful models with big screen sizes and mid-range prices, including the Spark 4, Phantom 8, and Camon 12, among others. In addition, Transsion experienced strong demand for its wide range of models in low price bands ($0<$100).

Huawei had a major comeback to the market, benefiting from an increased marketing budget and the launch of new products in the mid-range price bands. Samsung benefited from its A series models, which had a wide market audience due to the affordability and rich features of these devices.

The Nigerian government raised VAT from 5% to 7.5% effective from February 1st, 2020. This new regulation is likely to lead to an increase in smartphone prices, leading to slower smartphone adoption in the market. With VAT averaging 5% in the markets directly neighboring Nigeria, gray market re-exports of smartphones into the country are likely to increase.

Anticipated Impact of COVID-19 Outbreak

As per the most recent Situation Report (#56) from the World Health Organization, there are now 167,511 confirmed cases of the COVID-19 virus worldwide, with 6,606 deaths. In response to the pandemic, IDC has developed three possible scenarios – Optimistic, Probabilistic, and Pessimistic – and currently believes that the Probabilistic scenario is the most likely to occur, with both supply- and demand-side concerns alleviating by the second half of 2020. Under this Probabilistic scenario for Nigeria and Ghana combined, IDC expects smartphone shipments to decline 15.4% in QoQ in Q1 2020 and 3.9% in Q2 2020.

As most consumer devices in West Africa are imported from China, the disruption to supply chains caused by the COVID-19 outbreak will have a particularly severe impact on this sub-region. Most of the major smartphone brands (i.e., Tecno, Itel, Infinix, Xiaomi, Huawei, Oppo, and Vivo) are of Chinese origin and they control over 85% of the regional market. Other brands such as Nokia and Samsung, with their partial production outside China, cannot fill the gap as they also source parts and components from China.

The impact of the COVID-19 outbreak on Nigeria is double sided. While the supply of smartphones will inevitably be restricted on the Chinese side, Nigeria’s oil revenues are also likely to suffer as China is Nigeria’s the largest customer for crude oil and other raw materials.

“While the spread of COVID-19 presents a significant threat to Nigeria, a country with insufficient health infrastructure, the negative impact on oil revenues poses a larger threat in the short to medium term, and this will negatively impact the country’s fragile economic development and the purchasing power of consumers,” says Dr. Ramazan Yavuz, a senior research manager at IDC.

“While the impact of the spread of the virus is expected to lessen and a return to normalcy is awaited in H2 2020, the volatility and uncertainty in oil markets will continue to take a bigger toll on the Nigerian economy, which will subsequently stifle demand for consumer devices, including smartphones.”

IDC expects that the shortage of smartphone supply will drive an increase in gray market imports from other markets. “If the supply chain is not back to normal and distributors run out of stocks, the average selling prices for smartphones are likely to go up because of the shortage in supply,” says George Mbuthia, a research analyst at IDC. “The increase of VAT to 7.5% in Nigeria will push costs further upwards, slowing smartphone penetration in the short term.”


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Lagos Plastic Ban: MAN Warns of Job Losses, Closure of Businesses

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Manufacturers Association of Nigeria (MAN) has expressed concerns over the impending ban on Single-Use Plastics (SUPs) by the Lagos State Ministry of Environment.

Lagos Plastic Ban:  MAN Warns of Job Losses, Closure of Businesses

It warned that it could lead to job losses and  and lead to economic, operational, and social consequences for manufacturers, traders, recyclers, and end users.

Segun Ajayi-Kadir, director general, MAN, in a statement called on the Lagos State government to reconsider the ban, citing a lack of credible data and stakeholder engagement.

According to Ajayi-Kadir, a recent study revealed that 100% of manufacturers surveyed expressed fears of job losses and workforce restructuring if the ban is implemented.

He said, “A recent MAN-supported study evaluating the possible impacts of the Lagos State SUPs ban revealed significant adverse economic, operational, and social implications across the value chain, from manufacturers to wholesalers, traders, and end users. It has been noted that only poor and developing countries often tilt towards plastic ban as a strategy to combat environmental problems.

“A hundred percent of the manufacturers consulted expressed concern over a ban-induced workforce restructuring. Thus, several jobs will be lost in the industry if this ban were to be implemented.

“It is noteworthy to mention that there is no form of arrangement for social protection for the employees who will lose their livelihoods as a result of this ban.

“Also, there has been no form of social dialogue on the part of the government with these workers or the industry on the potential job losses.”

According to him, findings showed that 89% of operators in the plastic value chain rely on SUPs as their primary source of income with no alternative source of livelihoods, over 75% of end users, including SMEs, depend on plastic packaging with no affordable or practical alternatives, and  93% of dealers, many of whom are women, reported no prior information or social support mechanisms to cushion the impact.

Ajayi-Kadir emphasised that banning SUPs would not resolve pollution issues but merely substitute one problem for another, especially without scalable alternatives or infrastructure to support the transition.

He urged the government to focus on improving waste management infrastructure and promoting recycling, rather than imposing bans.

 

 


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Court Hands 23 Chinese Nationals 1 Year Jail Term Each for Cyberterrorism, Fraud

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A Federal High Court in Ikeja, Lagos state has sentenced 23 Chinese nationals to one year imprisonment each for their involvement in cyberterrorism and internet fraud.

Court Hands 23 Chinese Nationals 1 Year Jail Term each for Cyberterrorism, Fraud

Economic and Financial Crimes Commission (EFCC) arraigned them before Justices D.E. Osiagor, D.I. Dipeolu, and A.O. Faji on a single count of cyberterrorism and online fraud.

Dele Oyewale,  spokesperson, EFCC,  revealed that the convicted individuals were members of a cyber-fraud syndicate comprising 792 people.

He noted that the culprits were arrested on Thursday, December 19, 2024 in Lagos, during an operation known as ‘Eagle Flush.’

Oyewale stated that the individuals identified as Yu Hui (also known as A. Bin), Huang Jin Hui, Fei Fan, Lu Qiang, Hu Xi Zheng, Sun Zhi Peng, Wu Hao, Cong Bing, and Li Qiang alias Yang Huan Huan, Zheng Wei alias A. Hong, Cheng Jian, Da Tou, A Wen, Zhang Lei, Huang Zhi, Pan Jiong, Chen Wen Yuan, Jia You alias A. You, Wang Zheng Feng alias Feng, Liu San Hua, Liu Beixing, and Wen Zong Xu alias Li Long were all charged on one count of online fraud and cyber-terrorism.

One of the charges brought against Yu Hui (also known as A. Bin) claimed that he, along with others, unlawfully accessed computer systems in Lagos around December 2024 with the intent to destabilize and damage Nigeria’s economy and social structure.

According to the EFCC, this act violated Section 18(1) of the Cybercrimes (Prohibition, Prevention, Etc.) Act, 2015, and is punishable under that law.

Similarly, another charge filed against Jia You, accused him of accessing computer systems with the aim of undermining and harming Nigeria’s economic and social stability.

This action was said to be in breach of both the Cybercrimes Act and the Terrorism (Prevention and Prohibition) Act, 2022.

Initially all the defendants pleaded not guilty to the charges.

However, during the court session, they pleaded  guilty.

The EFCC prosecution team comprising of Nneemeka Omewa, Babatunde Sonoiki, U.S Kyari, and B.M Isah informed the court that the defendants had reached plea bargain agreements.

The defence team confirmed this and requested the court to adopt the terms of the agreements.

Justices Osiagor, Faji, and Dipeolu found each defendant guilty and sentenced them to one year in prison, with the sentence starting from their arrest date on Tuesday, December 10, 2024.

Each convict was also fined N1 million.

Additionally, the judges ordered the Nigerian Immigration Service (NIS) to deport the convicts within seven days of completing their sentences.

All devices recovered during the operation including mobile phones, laptops, and routers were forfeited to the Nigerian government.


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Galaxy Backbone Reaffirms Commitment to Support Security Agencies with Its Vast Digital Infrastructure

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The Board, Management, and Staff of Galaxy Backbone (GBB) express profound sorrow and heartfelt condolences to the governments and people of Benue, Borno, Plateau, Anambra, and other states affected by recent waves of violent attacks and insecurity. We mourn with every family, community, and institution that has suffered the pain of loss, displacement, and trauma.

At Galaxy Backbone (GBB), we firmly believe that security is the bedrock of any thriving society. No nation can make meaningful progress when peace is threatened. These tragic incidents are not just national emergencies, they represent deep personal losses to every Nigerian, and they call for urgent, united, and technology-enabled solutions to support lasting peace.

As a Federal Government organization, entrusted with delivering secure digital infrastructure and smart technology solutions to public institutions across Nigeria, Galaxy Backbone remains resolute in its commitment to supporting state governments and security agencies through cutting-edge digital platforms that enable proactive and intelligent security management.

We also acknowledge and commend the visionary leadership of His Excellency, President Bola Ahmed Tinubu, GCFR, and the concerted efforts of the Federal Government of Nigeria in responding decisively to the security challenges facing parts of the country. The President’s unwavering commitment to peace, safety, and national unity under the Renewed Hope Agenda is evident in the bold steps being taken to restore order and build a more secure Nigeria.

Through our Safe City Security Solutions, GBB offers an integrated suite of smart surveillance systems, real-time data analytics, emergency communication networks, and AI-enabled threat detection tools. These solutions are specifically designed to enhance operational capabilities, strengthen coordination across security agencies, and empower informed decision-making in high-risk environments.

GBB stands ready to partner with both state governments and security agencies that are committed to building safer, smarter, and more resilient communities. We believe that technology must lead the charge in safeguarding lives, and we are proud to serve as a trusted digital ally in Nigeria’s journey toward modern, tech-enabled public safety.

Together, we can bolster early warning systems, expand surveillance coverage, enable faster emergency responses, and ensure that every Nigerian lives in a country where peace and prosperity are not aspirations, but realities.

May the souls of the departed rest in peace. And may strength, healing, and hope return to the hearts and homes of all those affected.

Galaxy Backbone remains aligned with the vision of a secure, digitally connected, and inclusive Nigeria, where every citizen has the freedom to live, work, and dream in peace.


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