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What does it take to manufacture a smartphone?

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BeyondFintech by Rarzack Olaegbe

By RARZACK OLAEGBE

Highprecision manufacturing equipment. Plus.

At a C-suite meeting recently, the executive placed their smartphones on the table. All the smartphones wore global garb. iPhone, Samsung, HTC. You name it. If you had a Made-in-Nigeria smartphone, would you display it? How much would you pay for it?

In the short term

If you need to manufacture a smartphone, you need advanced engineering and design skills. Global supply chain coordination. High‑precision manufacturing equipment. Strict quality control and compliance. Sustainable and ethical sourcing. Where is your seat on this train?

On the one hand

The federal government wants to manufacture smartphones. It would give grants. Tax waivers. And other incentives to Chinese phone makers. And local manufacturers who are willing to establish production plants here. This offer lasts until November 2026. This proposition would likely place Nigeria in the comity of global smartphone giants. If. If the idea comes to fruition.

On the other hand

The government plans to cut Nigeria’s dependence on imported devices. It plans to make smartphones affordable. This is a good move. Smartphones have halved the barriers to digital inclusion in Nigeria. But the high foreign exchange rates have pushed device prices beyond our reach. N250,000 will get you a cheap Android smartphone. Therefore, by encouraging local manufacturers, the government hopes to eliminate production costs tied to foreign exchange. Stabilise retail prices. Create thousands of direct and indirect jobs. Hope.

In the long term

Well, if hope is a smartphone, every Nigerian will own one. The Chairman of the Governing Board of the Nigerian Communications Commission (NCC), Idris Olorunnimbe, at the Digital Africa Summit Roundtable in Shanghai, expressed the hope that a Made-in-Nigeria smartphone could be a reality. He vowed to get presidential backing for this project.

How did we get here? In 2021, we embraced the global system of mobile [GSM] communication. And the telecom revolution started. GSM is 25 years old this month.  It is powering industries. In 2017, we missed another revolution. AfriOne launched locally assembled smartphones from its Lagos factory. It promoted the devices as a step toward growing Nigeria’s electronics manufacturing sector. Where is AfriOne? Where are the devices?

In 2018, Imose Technologies brought affordable smartphones and tablets for the local market. But it depended on imported parts. As such, Imose could not compete with the global brands. Besides, it struggled with inconsistent product quality. Poor after-sales support. Low consumer confidence. Lack of warranty. On this scale, imported brands rank high. A Made-in-Nigeria smartphone will go to other markets. Nigerians in the diaspora. African market. Can we compete with the foreign brands?

It seems we have a different idea. Now, government officials insist the goal is different. The idea, they said, is to build devices that can compete with imported ones on quality while selling at lower prices. They hope that stronger local supply chains will make the sector less vulnerable to exchange-rate volatility. And global supply disruptions. Hope.

They hope local manufacturing would support component suppliers. Logistics providers. Retailers. Repair businesses. If it works, it could help Nigeria to retain more value from one of Africa’s largest smartphone markets. Aside from this, this idea also aligns with the government’s broader industrialisation agenda. Whether Chinese and local manufacturers will take up the offer before the November 2026 date will determine if this latest effort will succeed.

Fun fact

The first smartphone, the IBM Simon, came in 1994 and could send emails, run apps, and even had a touchscreen, decades before modern smartphones became ubiquitous.

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