Encomium
In a recent interview with Arise TV, Karl Toriola, the CEO of MTN Nigeria, discussed
the company’s efforts to make smartphones more affordable and accessible in
Nigeria. He highlighted the challenges and opportunities in the Nigerian market and
outlined MTN’s strategies to promote digital inclusion.
Toriola acknowledged that device affordability is a significant barrier to digital
inclusion in Nigeria. He noted that while the cost of smartphones has decreased
globally, the upfront cost remains a hurdle for many Nigerians. He also highlighted
the potential of local assembly and financing schemes to further reduce the cost of
smartphones. He explained, "Local assembly does a number of things. First of all, it
can bring down the cost of production, it eliminates custom duties and then you talk
about financing handsets and for that financing ecosystem to work you need to
have aggregate credit scoring history to know who to loan to, recovery capabilities
etcetera etcetera.”
He revealed that MTN is already partnering with several companies in Africa to
develop this financing ecosystem. He believes that this approach, combined with
mobile money and credit scoring, can make smartphones more affordable for
Nigerians.
MTN’s partnership with Intelligra, an open platform for smartphone financing, is a
key part of MTN's strategy to make smartphones more affordable to the average
Nigerian. Intelligra’s expertise in credit access and financing solutions complements
MTN’s telecommunications services, creating a synergy that benefits customers. A
similar partnership also exists with M-Kopa.
Through this partnerships, MTN customers can choose from a variety of smartphone
models and pay for them in installments, making the devices more affordable. This
approach not only enhances digital inclusion by making it easier for customers to
own a smartphone, but also promotes financial inclusion by providing a form of
credit.
MTN’s interest in smartphone financing and digital inclusion, as well as its
partnership Intelligra and M-Kopa, reflects a strategic approach to promoting digital
and financial inclusion in Nigeria. These initiatives are not only expanding access to
smartphones, but also contributing to the broader socioeconomic development of
the country.
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