Prices of laptop computers in Nigeria have gone up by an average of 70% over the last two years, driven by the weakened value of the Naira.
The development, which is now threatening the digital economy agenda of the government, has made it difficult for many Nigerians to own their first computer device, even as businesses struggle to procure the tool for their employees.
This was in spite of the existence of a vibrant market for used and refurbished laptops, which are expected to be cheaper and more affordable for the average Nigerian.
According to market dealers at the popular Computer Village in Lagos, a low-end Core i3 laptop, which was sold for N300,000 in late 2023, now costs around N520,000 or more, representing a 73% increase.
For used laptops, prices now range between N200,000 and N350,000, depending on the configuration, a far cry from the N100,000 to N150,000 they were being sold two years ago.
Data snapshot
Sellers’ perspective
A computer dealer at the Ikeja Computer Village and the CEO of K-Chronos Global Tech Limited, Mr. Presley Ibadin, says the price surge has not only affected the Nigerian consumers but the sellers as well.
According to him, sellers are seeing low demand, yet the prices are not coming down because of the foreign exchange.
“Prices are still high because the Naira is still very low in value compared with the dollar at the current rate of N1,500 to a dollar. In early 2023, a dollar was being exchanged for around N500, so you can imagine the difference,” he said.
He, however, noted that the prices have been stable in the last few months due to the relative stability in the foreign exchange market.
Another dealer in the market, Mr. Ekene Chibuzor, blamed the increase on the fact that Nigeria has not grown its local capacity in computer manufacturing, leaving the country at the mercy of importation.
“No part of a computer board is manufactured in Nigeria, and many Original Equipment Manufacturers (OEMs) are only branding and assembling locally and not manufacturing. The possibility of laptop prices falling is slim as a result of hi-tech research on laptops and the increasing cost of technology,’’ he added.
How it affects the consumers
For many Nigerians, especially those who are dreaming of having their first personal computers, the current price is making it difficult, and many have had to lose the opportunity to contribute to the digital economy as a result.
- In one instance, Cynthia, who graduated from Lagos State University two years ago, said she had lost three remote job opportunities because she did not have a laptop and could not afford one.
- Beyond individuals, some businesses in Nigeria are also finding it difficult to procure laptops for their employees, even as they cut down expenses for several other needs due to the rising costs of doing business in the country.
- A vendor told Nairametrics that some companies are now settling for fairly used computers as prices of new ones have jumped above their budgets.
Macroeconomic factors
The surge in the costs of laptops in Nigeria is driven largely by the macroeconomic factors of inflation and foreign exchange.
From 21.34% in December 2022, Nigeria’s inflation rate rose steadily to hit a 28-year high of 34.60% in November 2024 as costs of goods and services surged across the country.
While the inflation rate has been easing in the last few months to settle at 20.12% in August this year, prices of goods and services have remained up.
For products such as laptop computers, which are imported, the exchange rate currently hovering around N1,500 to a dollar means that prices will remain high until the exchange rate goes below N1,000, which analysts say is improbable given the current economic dynamics in the country.
What this means for you
The cost of laptop computers means that many Nigerians may be left out of the digital economy despite the much-touted digital economic policy of the government.
A recent World Bank report titled ‘Digital Progress and Trends’ highlighted this reality in Nigeria as it revealed that less than 20% t of households in the country have a computer.
“Fewer than 20% of households in the Kyrgyz Republic, Malawi, Mali, Mozambique, Myanmar, and Nigeria owned a computer,” the Bank stated in the 2024 report.
Like the case of Cynthia cited above, this will also continue to deprive many Nigerians of the opportunities to take up remote jobs.
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