MTN, the largest mobile network operator and the first to launch a 5G network on a commercial scale in Nigeria may have found a way to tackle device affordability in the country where citizens are grappling with an unprecedented surge in the prices of goods.
On Wednesday, the telecom operator announced a partnership with Intelligra, an operator-led device financing solution provider, that enables the telco not only to provide subscribers with access to its network services but also to expand the digital inclusion net in Nigeria. The partnership will work to deliver at least 1000 units of devices on a daily basis.
Although Nigeria leads Africa in the number of internet users, the cost of smartphones in the country is one of the highest. A recent report by Alliance for Affordable Internet noted that it would take the average Nigerian 33 percent of his or her income to buy a smartphone and 12 percent of their income to get a feature phone.
This barrier has led to the growth of Buy-Now-Pay-Later (BNPL) options with experts projecting that this could lead to a 60 percent growth in smartphone penetration. However, MTN and Intelligra’s brand of BNPL is a unique variant.
The partnership with Intelligra means that customers have the opportunity to subscribe to any of the MTN bundle plans for as low as N7,000 and walk away with a smartphone of their choice. The new smartphone owners can spread payments over a period of 6 to 12 months with a deposit of N27,150. The plans are bundled with up to 11GB of data and 250 voice minutes monthly. Subscribers can also redeem a one-time free screen replacement when broken and a one-time free phone replacement when stolen provided the customer has an active and up-to-date subscription.
“The partnership with Intelligra will drive financial inclusion, the digital goals of financing devices, and making them accessible to the average man. It would also grant customers access to the internet, entertainment, and education and allow users to communicate easily,” said Adia Sowho, chief marketing officer, MTN Nigeria.
To ensure the effective delivery and sustainability of the financing scheme, the partners have also enlisted the help of financial institutions such as Stanbic IBTC, VFD Microfinance Bank, Personal Trust Microfinance Bank, Credit Direct, and others. Customers can receive their deliveries from any of the over 70 SLOT outlets across the country and MTN service centres.
Tayo Ogundipe, CEO and founder of Intelligra the partnership will help to find a solution to smartphone penetration for Africans through increased digital and financial inclusion.
Device financing is not a new territory for MTN Nigeria. Adia Sowho says since the company began to embrace the model, it has financed over 20,000 devices. The partnership with Intelligra enables the telco to expand the service to many more Nigerians.
“These collaborations offer MTN users across the country, a unique, convenient, simple, and flexible variant of BNPL with their choice of premium, quality brands including Samsung, Nokia, Tecno, Infinix, and iTel models,” Ogundipe said.
Other added benefits include monthly data allowance and voice call minutes, tenor periods (up to 12 months), increased financed amount (up to N500,000), and device protection against theft and screen damage.
According to Tayo Ogundipe, CEO/Founder, Intelligra Solutions Ltd, “This partnership with MTN, the foremost telecom provider in Africa, and collaborations with financing institutions including StanbicIBTC, VFD Mfb, Personal Trust Mfb, Credit Direct Ltd. and others,
To participate in the offer, interested customers can check their qualification status at participating stores or from the comfort of their homes online through MTN and Intelligra’s websites.
“Other partners will offer these online qualification checks on their websites in the coming days. Once qualified, a customer can subscribe to any of the customised MTN device financing plans and leave the store with a dream phone,” MTN noted in a statement.
