The Global System for Mobile Telecommunication Association - GSMA has released vital information concerning the ongoing escalation of smartphone prices in Nigeria as well as other regions within sub-Saharan Africa. The significant revelation from this investigation brings to light the pressing issue of rising smartphone prices faced not only by Nigeria but also other countries in sub-Saharan Africa.

According to their recent research findings, an increase in local taxation plays a pivotal role and accounts for a considerable rise between 10 to 30 percent in the price of smartphones. The report throws light on the fact that these steep taxes have a profound effect on the availability and accessibility of smartphone devices in Africa. The taxation rates heavily affect the retail prices of smartphones, hence their accessibility to the general public.

The GSMA also explains the relative contributions of taxes and duties to a price hike of between 10 and 30 percent, albeit this varies from one African country to another. These tariffs pose a significantly inhibitive factor for many citizens, thereby denying them access to these devices. Apart from this disparity in cost from country to country, the high manufacturing costs, particularly in the 5G and 4G space, create a challenge for local manufacturers in the region to offer cost-effective solutions.

These market obstacles effectively limit the market share and availability of affordable devices. Moreover, owing to the smartphone affordability issue, the report highlights that mobile internet usage has been kept at bay in this region. This drawback has left approximately 60 percent of the African population without mobile internet access, even though network coverage is not a problem.

However, on a positive note, the GSMA report acknowledges the crucial impact of the introduction of devices priced less than $100. Such affordable options, primarily offered by Chinese brands such as Tecno, Itel, and Infinix, have considerably assisted in making smartphones more accessible to a wider population.

Notably, recent information provided by the National Bureau of Statistics in Nigeria indicates a significant surge in the country’s inflation figures, rating at a whopping 27.33 percent, which is the highest recorded in recent years. This escalating inflation rate has been another factor contributing to the upward trend in smartphone prices.