The rising cost of living has diminished consumers’ buying power, forcing a growing number of individuals to opt for older second-generation (2G) devices as they are unable to afford modern alternatives.
According to the Nigerian Communications Commission (NCC), 2G continues to be the dominant technology in Nigeria’s mobile market with 60.32 percent of the country’s 220.36 million mobile subscriptions on the 2G network as of August 2023 compared to 58.36 percent in May 2023.
This increase comes as a result of the economic downturn, which has left many individuals and families struggling to afford high-speed internet plans and modern smartphones.
“During times of economic uncertainty, we typically see a shift in consumer behaviour as people look for ways to tighten their budgets,” said Sarah Johnson, a telecommunications industry analyst.
“The shift towards 2G services and devices is a clear example of this trend. Consumers are prioritising basic communication needs over data-hungry applications,” she added.
The NCC data show 28.07 percent of those subscriptions were on 4G; 10.78 percent on 3G, and 0.83 percent on 5G, indicating low smartphone ownership in the country, despite sustained network investments by telecommunication companies (telcos) in the country.
Statista, a market data and research portal, reveals that only about 10 to 20 percent of the Nigerian population own a smartphone.
Alliance for Affordable Internet estimates the number of Nigerians with access to smartphones at 44 percent.
However, MTN disclosed that the number of smartphones on its network increased by 1.8 million in the first half of 2023, bringing its smartphone penetration to 53 percent.
One of the reasons for keeping 2G and 3G alive is the wide coverage it gives the telcos.
Ralph Mupita, president and CEO of MTN Group, in a recent report, said: “Out of its 289 million subscribers as of 2022, 92 percent of its population coverage are still on 2G, 84 percent are on 3G, 79 percent on 4G, and 4 percent on 5G.”
