FG Moves to Cut Device Costs, Offers Incentives for Local Assembly Plants

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The Federal Government is seeking to reduce the cost of mobile phones and internet-enabled devices by encouraging global manufacturers to establish assembly plants in Nigeria, in a move aimed at expanding digital access and reducing dependence on imports.
Chairman of the Nigerian Communications Commission (NCC), Chief Idris Ibikunle Olorunnimbe, said the government is prepared to facilitate presidential incentives for manufacturers willing to invest in local production.
Speaking at the Digital Africa Summit Roundtable in Shanghai, China, Olorunnimbe said manufacturers that commit to establishing production facilities and begin construction before November would receive regulatory support.
“If any manufacturer in this room, or any manufacturer listening to these proceedings, will commit to building a factory in Nigeria, and begin construction between now and November, I will take that commitment to the President myself and seek the waivers and the support you need to make it happen,” he said.
The initiative comes as policymakers shift attention from network expansion to device affordability as a major constraint to digital inclusion. While Nigeria has more than 170 million mobile connections and over 150 million mobile internet users, millions remain excluded from the digital economy because they cannot afford smartphones and other internet-enabled devices.
According to Olorunnimbe, local manufacturing would reduce exposure to foreign exchange volatility by increasing the proportion of production costs denominated in naira.
“When a device is built with Nigerian raw materials and Nigerian labour, most of its cost is denominated in naira. It stops rising and falling with every move in the dollar,” he said.
The proposed manufacturing drive complements the NCC’s broader digital inclusion agenda, including efforts to expand access to educational content through zero-rated platforms that allow students to use approved learning websites without data charges.
Industry observers say combining affordable locally produced devices with free access to educational platforms could improve digital literacy while creating demand for domestically assembled smartphones, routers and MiFi devices.
Olorunnimbe said the government would prioritise quality standards to ensure locally assembled devices compete with imported brands.
“The aim is to build phones in Nigeria that match the imported phones in quality and beat them in price. A locally made device that asks Nigerians to settle for less is not worth making,” he said.
The NCC said the initiative would be supported by updated Type Approval Regulations and a planned Device Management System designed to curb counterfeit devices, strengthen consumer confidence and create a more competitive market for locally manufactured products.
The proposal forms part of broader efforts to deepen local value addition, expand digital access and stimulate investment in Nigeria’s technology manufacturing sector.

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