Smartphones are some of the items that appeal to the young generation more than anything else. Nowadays smartphone makers seem to be releasing new phones so often with the latest iPhone 8, iPhone X and Samsung Galaxy S9 models already available, super-keen smartphone users have a big decision about upgrading. For Chinese phone makers like Tecno, Infinix, Gionee, Itel, etc, their rate of launching new devices are so fast that loyal customers are often left perplex or confused if to buy now or wait for the next release. Now with this high influx of smartphones into the market and the temptation for users to upgrade to a newer version coupled with the high prices of these devices, one would think that service providers like MTN, GLO, Ntel, Airtel etc in collaboration with phone companies will come up with a plan to enable Nigerians buy high end devices and spread the payment over a period of one year like it is done in advanced countries. For example, the new iPhone X 256GB costs $1829, that’s about N700,000 in Nigeria while the 64GB version is about N370,000 on Konga or Jumia. Now that amount will put a big hole in the pocket of the average Nigerian. Companies like Verizon and Vodacom sell this devices at 12-Month plan and earn more money


Selling smartphones on a contract to Nigerians will enable middle class youths afford high end devices without breaking the bank at the same time, the companies will make more money at the end of the plan, Looks like a win-win situation for everyone right ? So why is it no operational in Nigeria ? These are some of the obstacles.



1. No accurate database system:

Despite efforts of FG to collate accurate database of Nigerians through relevant agencies, they have not succeeded in that regard. Who will give out a product on credit to someone he doesn’t have an accurate information about ? Information like criminal records, personal data, average income, etc of every Nigerian including new born babies of every Nigerian must be known for an effective credit system to work.

2. Lack of sincerity and trust:

Sadly this unfortunate reason is real. It is the same reason that has made major shopping sites in the world refuse to sell to Nigeria even though they’re ready to pay cash. Nobody is ever going to do credit transaction in such an atmosphere.

3. A big class divide:

No matter how expensive a smartphone is, there are always Nigerians ready to pay instantly for it without blinking an eye. There’s a big gap between the rich and the middle class and also a big fat gap between the middle class and the poor. Which seller wants to look at a person wanting to buy credit when a big boy is ready to pay cash.

4. Lack of relationship with banks:

Only about 5% of customers actually have good relationship with their banks. All they do is go in, deposit, withdraw and complain to customer service! No relationship whatsoever, no dedicated accounts officer. Building good relationship with a bank will enable the banks to determine the creditworthiness of a person.

5. Nigerian mentality:
Because we are so used to our “cash and carry” mentality, a lot of people will not really welcome the idea of purchasing gadgets on contract. Some may feel the gadgets are substandard or there’s a loophole somehow in the transaction. We’re so used to saving before buying that a new arrangement will seem strange. Those days in the university, our VC came up with a plan to enable students buy new laptops from the school on contract and pay over a period of one year. Only very few students patronized it and the management eventually scrapped the arrangement.

6. Limited to one network:

For those who buy phones on foreign sites. Sometimes, we see phones that are “locked” to a single network like Verizon, T-Mobile AT&T etc. Those are phones bought on contract with the network providers and Nigerians are so used to swapping SIM cards that if a network like GLO comes out with a plan to enable Nigerians buy an iPhone X (locked on GLO network) and pay in 12 Months, most people will run away. Do you know more reasons why buying gadgets on contracts won’t work in Nigeria, tell us in the comment section.

SOURCE: http://techcapon.com/why-nigerians-are-not-allowed-to-buy-smartphones-on-contract/

D Nigerian attitude will always creep in

Would you sell a phone on contract to a fellow Nigerian? No? Why? Well, your answer to "why" is the answer to the question in this topic.

DrMuzungu:
Would you sell a phone on contract to a fellow Nigerian? No? Why? Well, your answer to "why" is the answer to the question in this topic.

funny

The database and to an extent limited network are the key constraints. Another constraint not mentioned is law enforcement. Will a credit defaulter be made to account for his/her deeds upon defaulting? Regarding the customer - bank relationship, I think Fidelity or Sterling bank had/have such a scheme (you are loaned money to purchase a high-end phone).

Nonetheless, good points.

Gerrard59:
The database and to an extent limited network are the key constraints. Another constraint not mentioned is law enforcement. Will a credit defaulter be made to account for his/her deeds upon defaulting? Regarding the customer - bank relationship, I think Fidelity or Sterling bank had/have such a scheme (you are loaned money to purchase a high-end phone).

Nonetheless, good points.

but they couldn't sustain it. The truth is, credit system cannot be sustained in Nigeria.

It would have been a nice idea but too many dishonest people out there.

I wonder too, South Africans buy everything on contract, even include food, cars, etc, u will see 20 years old SA boy riding latest car with just R5,000(almost 160k naira) monthly salary, the company maybe deducting just 2 to 3k out of ur salary for 24 months, servicing included, their govt just make everything easy for them all because they have details of every of their citizens on their data base

dominique:
It would have been a nice idea but too many dishonest people out there.

Doesn't that suggest finding ways of crafting contracts that work in our own clime?

Perhaps direct debits from salary accounts..

It's essentially a loan and loans are currently being successfully executed here in Nigeria, in spite of a few dishonest people...

This is Nigeria... Everybody na criminal

Stop rubbing our problems on our faces
Find a LASTING SOLUTION

all boils down to lack of accurate government data base. even advanced countries deal with all this issues of trust, sincerity, class divide, banks and local mentality. when we fix our biodata systems, all other things including phone contracts will be taken care of. BVN AND NIM CODES are parts of the baby steps needed to get there.

alignacademy:


Doesn't that suggest finding ways of crafting contracts that work in our own clime?

I'm sure the mega phone retailers must have thought of it and weighed the pros and cons. The cons probably outweighs the pros

dominique:


I'm sure the mega phone retailers must have thought of it and weighed the pros and cons. The cons probably outweighs the pros

LOL

My sister...

The whole system is rotten from the core..... Who knows who? who knows where who resides? Who knows ability to trace who? Who knows who's credit rating?

Lol It can work but only to few set of people

We are not used to monthly bills

For a certain someone.

Lordcenturion2:
I wonder too, South Africans buy everything on contract, even include food, cars, etc, u will see 20 years old SA boy riding latest car with just R5,000(almost 160k naira) monthly salary, the company maybe deducting just 2 to 3k out of ur salary for 24 months, servicing included, their govt just make everything easy for them all because they have details or every of their citizens on their data base r

My high school mate living in south africa get things on contract as well. why because he has integrated into the system even though he still uses a nigerian passport. the deduction is done at source from his salary.. he owns two cars and house as i write all gotten via credit sysyem. i think its has to do with data base and proper records or their citizen.

Unemployment is the biggest factor.

I have seen OZB at Wetheral Road Owerri advertising to sell phones on credit before. If you are from Owerri, you might have seen the sign too.

If you an African wishing to study on scholarship, then there is an opportunity available for you now!

Ok

Nigeria is not yet ripe for contracts! Your country is a jungle infested with wild animals!

Hmmm

Contrary to what people say here, this is quite easy. Simply use the customers BVN, set up a standing order to their current bank accounts(must be working& earning enough to be eligible). That money would be deducted first on your pay day .

lofty900:
but they couldn't sustain it. The truth is, credit system cannot be sustained in Nigeria.

Simply because of the inherent dishonesty.of Nigerians as a whole.

I will not give anything on credit to a Nigerian I do not personally know. Never.

Try it and see first. You shop will be empty on the first day and then you'll start chasing debtors.

Online you'll see reactions like is it because of I-phone he's harrasing people like that.

Pls pay and carry if not leave it let it gather dust.

ehispapa:



My high school mate living in south africa get things on contract as well. why because he has integrated into the system even though he still uses a nigerian passport. the deduction is done at source from his salary.. he owns two cars and house as i write all gotten via credit sysyem. i think its has to do with data base and proper records or their citizen.

Can he sell any of the cars when he hasn't fully paid the debt?

alignacademy:


Doesn't that suggest finding ways of crafting contracts that work in our own clime?

Perhaps direct debits from salary accounts..

It's essentially a loan and loans are currently being successfully executed here in Nigeria, in spite of a few dishonest people...

What if you lose your job?

Go take a look at the portfolio at risk PAR of microfinance banks, then u will understand the difficulties involved in doing business on credit with Nigerians.

Nonsense. Major car dealers in Nigeria for example give out vehicles on instalment in collaboration with banks, if the network providers are serious, they'll investigate this option and tweak it a bit to suit their purposes especially with high end phones or other devices