The prices of gadgets have begun to fall due to the naira’s recent gain in the official and parallel windows of the foreign exchange market, according to a market survey by BusinessDay.
Nigeria’s official currency has rallied in recent weeks after falling to record lows in January and February. It closed at N1255.07/$ on Thursday at the Nigerian Autonomous Foreign Exchange Market (NAFEM), according to the FMDQ Securities Exchange.
Read also: Nigerians shift gear to Chinese cars on volatile naira
This strengthening is now reflected in the prices of gadgets, which worsened when the naira’s fall peaked at almost N2000/$. According to several vendors at Computer Village in Ikeja, the prices of devices and gadgets have slowly begun to fall in the past 1-2 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 Somto, another vendor.
When asked how he knew when to change the prices, he confirmed that their wholesaler always informed them of new prices on the spot.
However, some other vendors noted that although the naira is gaining, there will be no serious price reduction until about the latter part of the year.
“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,” Mr John, a vendor, highlighted.
While relief might wash over Nigerians hoping to own gadgets, vendors like Mr John warned that other factors may keep prices up.
“Other factors like import duty and electricity fees will also impact prices. Electricity for N1k, which used to be 11 units, is now four units for the same price,” Mr John stated.
For Mrs Confidence Sorochi, marketers would still determine prices no matter how low the dollar falls. Sales have been bad for her in recent times, she lamented.
“I usually sold 5-6 laptops a day, but now I struggle to sell 1. 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 asserted.
She added that many of the gadgets that will flood the market soon were bought at high naira rates, and this would limit how low prices can fall.
Another vendor who spoke anonymously said, “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.”
Read also: EFCC arraigns Bobrisky for naira abuse, money laundering charges today
A worker at SLOT Solutions at a branch in Ogun State said prices have not fallen yet.
“A 64gig memory card is being sold for N15,000. Phones that were N180,000 to N250,000 are now selling for N310,000. Prices have not reduced,” he 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.
