By Kingsley Benson
Nigeria’s digital economy is becoming increasingly dependent on the smartphone, with smartphone penetration rising to 75 percent in 2025 from 64 percent in 2023, according to a study by KPMG Nigeria and Orange Group.
The increase represents more than a change in device preference. It points to a wider shift in how Nigerians communicate, access financial services and interact with businesses, as mobile devices become the primary gateway to an expanding digital economy.
The study, which surveyed 13,251 respondents, found that the growing adoption of smartphones has coincided with a decline in the use of feature phones. Their market share fell from 36 percent in 2023 to 28 percent in 2025.
The development places greater importance on how businesses design products and services for mobile users, particularly in a market where affordability continues to influence technology choices.
Android dominates that landscape. According to the report, 88 percent of smartphone users have Android apps, making the operating system the dominant platform for Nigeria’s mobile economy.
The dominance of Android is closely linked to the availability of lower-cost devices from a wide range of manufacturers. While Apple’s iOS maintains a smaller market share, the report noted that iPhones continue to attract consumers seeking premium devices and integrated digital ecosystems.
The difference reflects a broader characteristic of Nigeria’s technology market. Consumers are increasingly connected, but price remains a major determinant of the devices through which they access that connectivity.
That dynamic is reflected in the dominance of Tecno, Infinix and Itel, which account for 25 percent, 24 percent and 10 percent of the device market respectively, according to the report.
The three brands have gained ground by combining relatively affordable pricing with features suited to emerging-market consumers. Their position illustrates how functionality and affordability continue to shape Nigeria’s smartphone market.
“Overall, the smartphone brand landscape in Nigeria reflects a market driven largely by affordability and functionality,” KPMG and Orange Group said.
The implications extend beyond the handset market. The study found that social media and communication applications remain among the most widely used digital services in Nigeria.
WhatsApp, Facebook and Xender recorded adoption levels of 95 percent, 87 percent and 77 percent respectively. Their widespread use reflects the role of smartphones as everyday communication and information-sharing tools.
The report noted that almost every respondent had at least one social media application on their device. This creates an increasingly important channel for businesses seeking to reach consumers, distribute information and provide customer services.
Financial services are another major part of the shift. Banking and fintech applications recorded adoption levels of up to 88 per cent among respondents.
The finding reflects Nigeria’s rapid movement towards digital payments, transfers and mobile financial management. Smartphones are increasingly serving as substitutes for physical banking interactions, particularly where digital platforms can provide faster and more convenient access.
According to the report, mobile banking applications, digital wallets and fintech platforms have also contributed to financial inclusion by providing alternatives to conventional banking infrastructure.
“For financial institutions and technology companies, this trend signals continued opportunities for innovation within Nigeria’s fintech ecosystem,” the report said.
The opportunity, however, comes with a corresponding need for security and reliability. As more financial transactions move to smartphones, users become increasingly dependent on digital platforms for access to their money and financial information.
The expansion of smartphone use also creates opportunities beyond fintech. Businesses in retail, entertainment, logistics, education and professional services can increasingly design customer journeys around mobile platforms rather than treating smartphones as an additional channel.
For developers, the dominance of Android has a similar implication. Products designed for Nigeria’s mass market need to work effectively across a wide range of devices, including lower-cost smartphones with different specifications and network capabilities.
This makes affordability an important consideration not only for device manufacturers but also for companies developing digital services.
Premium brands such as Apple and Samsung retain strong recognition, particularly among consumers seeking advanced cameras, performance and ecosystem integration. However, their comparatively higher prices limit their penetration relative to Android manufacturers.
The market therefore presents a dual opportunity. Premium consumers continue to support higher-end devices, while the much larger mass market is expanding through affordable smartphones.
The more consequential change is that both groups are increasingly operating within the same mobile-first economy.
