Nigerian Government Offers Incentives to Boost Local Smartphone Manufacturing

The Nigerian government is offering tax waivers and special incentives to phone manufacturers who commit to building production plants in Nigeria by November to improve device affordability.

The Federal Government of Nigeria is courting Chinese and local mobile phone manufacturers with a package of business incentives to encourage the establishment of production facilities within the country. Companies that commit to building manufacturing plants before November are being promised significant benefits, including tax waivers and various operating concessions.

Dr. Idris Olorunnimbe, Chairman of the Nigerian Communications Commission (NCC), presented this proposal during the Digital Africa Summit in Shanghai. He identified the high cost of mobile devices as the primary barrier to digital inclusion in Nigeria, noting that while network coverage is expanding, many citizens remain offline due to the inability to afford smartphones. By shifting production to Nigeria, the government aims to reduce device costs and limit exposure to foreign exchange volatility.

Dr. Olorunnimbe emphasized that the government is not looking for low-quality assembly efforts. The goal is to produce devices that rival imported models in quality while offering competitive pricing. To ensure market integrity, the NCC is also updating its type-approval regulations and implementing a device management system to combat the influx of counterfeit and cloned products.

Industry stakeholders have welcomed the initiative. The Association of Licensed Telecom Operators in Nigeria (ALTON) expressed strong support, noting that the country must transition from a consumer market to a hub for technology manufacturing, research, and design. The National Association of Telecom Subscribers (NATCOMMS) also endorsed the plan, calling it a timely strategy for the nation’s digital growth.

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