A number of tech gadgets dealers in Lagos, Nigeria’s commercial capital, have seen their sales drop over the last six months, blaming high inflation and low purchasing power of Nigerians.
They told BusinessDay that sales have fallen as people now pay more attention to spending on consumables like food and other basic needs than buying new gadgets, even as the prices of smartphones and other gadgets have risen in recent months.
The International Data Corporation said in a recent report that inflationary pressures and global supply shortages were major factors driving the prices of smartphones and other gadgets upwards in Nigeria and other countries.
Michael John, a mobile phone accessories dealer at Ikotun Market, said he had experienced over 30 percent drop in sales over the past six months.
“People are no more open to changing gadgets as before, and this is a result of the surge in the prices of the products and we can’t sell below the prices at which we bought the products. The economy is getting out of hand on a daily basis and I don’t blame customers,” he said.
John said he normally sold at least 50 pieces of gadgets daily in the past but had been unable to sell 30 pieces in recent months.
“I even have roadside sellers that do come to buy from me for resale but I have not been seeing them for a while now; when I met one of them recently, he explained that he didn’t have the capacity to continue the business again because of financial instability,” he said.
Gideon Onu, who sells electronics at Ikeja, said the high cost of imported products and high inflation, were making most electronics unaffordable for many people.
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“My earlier thought was that I lost most of my customers, and this prompted me to start selling below what I should sell. But to my greatest astonishment, I realised they were not buying from other places. They only retreated from buying electronics. In the past, my electronic watches didn’t stay in my outlet for more than five months but I can tell you now that I have not included that while making new purchases over the last seven months. We are now coming out to find our daily bread, not money for investment and savings again,” he said.
According to him, businesses dealing in consumables like foodstuffs and services like transportation are booming as people cannot do without them.
“I have a family of four, and I must confess that I am feeling the impact of this slow business and sales. I used to take everyone out almost every Sunday but now, things have changed. I can’t take my family out. Sales are slow and prices are high,” he added.
Unegbu Stanley, who is into the sale and repairs of laptops, lamented the state of the economy and its impact on his business.
“If the economy continues like this, many businesses may close shop. Nothing is easy here and customers still complain of charges. I use fuel here, I pay for light and I know how much it takes to buy parts for repairs,” he said.
