Nigeria to boost local smartphones and MiFi devices production with tax holidays

The Federal Government of Nigeria has further intensified efforts to promote domestic production of smartphones and MiFi devices through the consideration of tax holidays and collaboration with investors. 

In a statement released on Saturday and seen by Technext, the Nigerian Communications Commission (NCC) noted that the incentive is targeted at backing domestic manufacturing companies in a move to restructure the African telecommunications landscape. The target devices cover the production of smartphones, tablets, and routing equipment. 

The strategic move follows a recent surge in smartphone adoption and lengthy internet usage among Nigerians. An average subscriber is building a home across social media platforms, especially TikTok, Facebook, X (formerly), WhatsApp and Instagram.

To increase the adoption rate and reduce the retail price through local manufacturing of smartphones, the Chairman of the Commission, Chief Idris Ibikunle Olorunnimbe, noted that the initiative is beyond mere market regulation. He said the goal is to actively co-author an industrial renaissance with willing investors. 

“Regulation and market integrity are what make a market affordable in the first place. They are the precondition for it. 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 as quoted in the statement. 

Latest industry data further proves how smartphones are becoming essential for Nigeria’s digital economy ambition. 

Nigeria added around 904,000 new internet users in April 2026, pushing total internet subscribers to 154.7 million users. In fact, the top story of the month was the massive addition witnessed in broadband internet subscribers, which now has about 120.7 million users. 

While nearly 3 million Nigerians switched to broadband subscriptions during the month, it also pushed broadband penetration up by 1.37 percentage points to 55.67% from 54.30% in March 2026. 

In addition, the NCC’s advanced plan comes after Nigeria experiences an increase in the inflow of phones. During the first quarter of 2026, smartphone shipments increased by 8% year-on-year, showing continued demand among Nigerians despite affordability pressures in the market.

The demand shows that despite macroeconomic issues such as chip shortages, potential hike in prices, and bottlenecks suffered due to the Middle East war, Nigerians continue to prioritise connectivity.

Now, NCC wants to increase the adoption by pushing for Nigerian-made devices. 

Also Read: NCC begins process to provide free internet access to educational platforms.

Local smartphone production: Ease for low-income Nigerians 

Amid the move for operating incentives is the blending of market regulation with consumer affordability. During the first half of 2026, rough calculations indicate that the average cost of entry-level devices generally ranges between ₦100,000 and ₦200,000.

For low-income Nigerians, affording an internet-connected phone within the entry price range can be challenging, considering inflation and the continued fall in consumers’ purchasing power. This further makes affordability a persistent challenge.

However, the NCC noted that the provision of specialised customs protocols and manufacturing tax holidays are strategies aimed at reducing retail device costs. This, in turn, ensures equal access to digital life and drives inclusion. 

Olorurnnimbe mentioned that low-income citizens need not save for months before purchasing an entry-level smartphone. He urged the Nigerian telecoms and device industry to bury the idea that installmental payment is the way to go. 

“That is not how it works anywhere else in the world,” he said. 

The push follows an ongoing move by the NCC to make internet access to educational platforms free for Nigerians, most especially students and youths. Through the zero-rated access, the commission wants to create free access to formal education and digital skills development platforms.

Together with the push for locally made devices, NCC is advocating for smartphones that will feature embedded, un-deletable shortcuts to national education repositories and open-source vocational training portals. 

“Beyond education, these localised hardware products are slated to feature pre-installed links to vital digital government services. Citizens will be able to interact with civic registries, tax platforms, and e-health applications directly through secure, type-approved indigenous tech,” part of the statement reads. 

In all, the ambition is to create equitable access to the internet and continue building a solid foundation that transforms Nigeria’s digital future.