The prices of gadgets have begun to fall on the back of the naira’s recent gains against the dollar and other major currencies, according to a market survey by BusinessDay.
Nigeria’s currency has rallied in recent weeks after falling to record lows in January and February. It closed at N1,255.07/$ on Thursday at the Nigerian Autonomous Foreign Exchange Market, according to the FMDQ Securities Exchange.
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The naira appreciation has started reflecting in the prices of gadgets, which became more expensive when the naira’s fall peaked at over 1,800/$. According to several vendors at Computer Village in Ikeja, Lagos, the prices of devices and gadgets have slowly begun to fall in the past one to two weeks.
“An Acer laptop that was N450,000 in January now costs N325,000,” Precious Osy-Ijomah, a vendor at Computer Village, said.
Another vendor who requested anonymity said that a Zealot speaker that was N80,000 in January now costs N55,000.
“We used to sell a tablet for about N118,000. It costs N95,000 now. In January, prices were so unstable that the price we sold gadgets in the morning would be different from the price we would sell that same gadget in the afternoon just because the dollar rate had risen,” said another vendor who identified herself only as Somto.
When asked how he knew when to change the prices, he said their wholesalers always informed them of new prices on the spot.
However, some other vendors said that although the naira has gained in recent weeks, there will be no major price reduction until the current inventories have been sold.
“There will not be any drastic reduction in prices till September because we need to sell off the stock we bought at the high rate,” a vendor said, adding that other factors may keep prices up.
“Other factors like import duty and electricity fees will also impact prices. Electricity for N1,000, which used to be 11 units, is now four units for the same price,” he said.
Confidence Sorochi, another vendor, lamented that sales have been poor for her in recent times.
“I usually sold five to six laptops a day, but now I struggle to sell one. Although the dollar rate is reducing, marketers need to be told to reduce their prices. No matter the dollar rate, they fix the prices,” she said.
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She added that many of the gadgets that will flood the market soon were bought at high naira rates, and this would limit the decline in prices.
“Product prices in January affected our ability to purchase, which in turn affected sales for us. We have had to pump in more capital, which has reduced our stock. Instead of 10, we now buy 5. However, when the dollar started coming down, prices didn’t rise anymore. Now, we can predict what we will meet at the market,” another vendor said.
According to the Nigerian Communications Commission, about 63 million gadgets are sold annually in Nigeria. Over 132 million unique devices were on the country’s telecommunication network in 2020, underscoring its vast digital needs.
The growth in the demand for gadgets has been attributed to the increase in the number of telecom subscribers in the country. As of January 2024, 218.11 million mobile subscriptions were on the country’s network.
