Federal Government Pushes for Local Smartphone Production With Tax Waivers

The Federal Government has promised attractive incentives, including tax waivers, to smartphone manufacturers willing to establish production plants in Nigeria as part of efforts to reduce device costs and expand digital access.

Dr. Idris Olorunnimbe, Chairman of the Board of Commissioners of the Nigerian Communications Commission (NCC), made the call during the Digital Africa Summit Roundtable held in Shanghai, China.

Addressing participants on smartphone affordability, Olorunnimbe said the major challenge facing millions of Nigerians is the high cost of mobile devices rather than network availability or data pricing.

“Nigeria is the largest mobile market on the continent,” he said, noting that the country has more than 170 million mobile connections and over 150 million mobile internet users.

“The networks are there. The coverage is there and we are increasing coverage daily. And yet… the single biggest barrier keeping Nigerians offline is not coverage, and it is not the price of data. It is the price of the device in their hands.”

He linked the government’s digital strategy to President Bola Tinubu’s Renewed Hope agenda, which prioritises connectivity and digital infrastructure as tools for economic growth.

Olorunnimbe highlighted several initiatives already underway, including Project BRIDGE, digital skills programmes for young Nigerians, an artificial intelligence strategy and reforms to the country’s telecommunications policy.

According to him, strong regulation is necessary to ensure consumers have access to safe and reliable devices.

“A phone is only truly cheap if it is real, if it is safe, if it connects properly, and if it carries a warranty the buyer can rely on,” he said.

He noted that the widespread availability of cloned and counterfeit devices has weakened consumer confidence and increased long-term costs for users.

To tackle the problem, the NCC has updated its Type Approval Regulations and is introducing a Device Management System aimed at identifying stolen, cloned and substandard phones.

The NCC chairman argued that producing devices locally would reduce dependence on foreign exchange and help stabilise prices.

“We will not solve affordability at scale by importing our way out of it. We have to make more of the phones here, at home,” he said.

“The aim is to build phones in Nigeria that match the imported phones on quality and beat them on price.”

He admitted that earlier attempts at local manufacturing faced setbacks because many devices could not compete with imported brands in quality and durability.

Still, he assured investors that the government is ready to provide support for companies willing to establish manufacturing plants in Nigeria before November.

“Whatever it takes to get the plant standing, we will pursue it together, because every factory that rises in Nigeria grows our economy, employs our young people, and brings the price of a phone closer to what an ordinary Nigerian can pay,” he stated.

The proposal has received support from industry players. Chairman of the Association of Licensed Telecom Operators in Nigeria (ALTON), Engr. Gbenga Adebayo, said telecom operators fully support the initiative.

“We strongly support the vision articulated by the Chairman of the Board of Commissioners of the Nigerian Communications Commission,” Adebayo said.

He stressed that Nigeria should move beyond simply consuming technology and focus on becoming a centre for innovation, manufacturing, research and software development for the African market.

The National Association of Telecom Subscribers (NATCOMMS) also backed the move, describing it as a timely initiative for Nigeria’s digital future.

Africans Angle News