A recent study by KPMG Nigeria and Orange Group has found that Nigeria is rapidly becoming a mobile-first economy. The report noted a significant increase in smartphone penetration, rising to 75% in 2025 from 64% in 2023. This trend indicates a substantial shift from feature phones, which saw their market share decline from 36% in 2023 to 28% in 2025. The study surveyed 13,251 respondents to gather insights into Nigeria's mobile landscape.
The KPMG report highlighted the dominance of Android apps in Nigeria's digital economy. According to the study, 88% of smartphone users in Nigeria use Android apps, making Android the de facto platform. The report emphasized the need for Android-first product and app strategies, given its significant market share. Android's popularity can be attributed to the wide range of affordable devices manufactured by global and regional smartphone brands.
The report also examined the types of apps used in Nigeria, revealing that social media and communication apps are the most popular. A small group of digital utilities, including WhatsApp, Facebook, and Xender, dominate Nigerian smartphones, with adoption rates of 95%, 87%, and 77%, respectively. Their widespread use can be attributed to their utility and frequent pre-installation on smartphones.
WhatsApp, Facebook, and Xender's dominance can be attributed to their wide range of features, including communication, social connectivity, and offline file sharing. The report noted that almost every respondent had one or more social media apps on their phone. This is followed by banking and fintech applications, with adoption levels reaching as high as 88% among respondents.
The report highlighted Nigeria's rapid shift toward digital financial services, with consumers increasingly relying on mobile applications for payments, transfers, and financial management. The widespread use of fintech platforms reflects the growing demand for convenient, accessible financial services across Nigeria. Mobile banking apps, digital wallets, and fintech platforms have improved financial inclusion by providing alternatives to traditional banking infrastructure.
The KPMG report also noted that affordable Chinese brands dominate Nigeria's device market. Tecno, Infinix, and Itel control 25%, 24%, and 10% of the market, respectively. The report attributed their success to their affordable devices, which cater to Nigeria's price-sensitive market. This trend signals opportunities for innovation within Nigeria's fintech ecosystem.
As smartphone adoption grows and digital literacy improves, the demand for secure, user-friendly financial applications is expected to expand. The report emphasized that financial institutions and technology companies must continue to innovate and develop solutions that meet the needs of Nigeria's rapidly evolving mobile-first economy. With smartphone penetration expected to continue growing, Nigeria's digital economy is poised for further expansion.
Key points
- Smartphone penetration in Nigeria is expected to reach 75% in 2025, up from 64% in 2023.
- Android apps dominate Nigeria's digital economy, with 88% of smartphone users using Android devices.
- Affordable Chinese brands, such as Tecno, Infinix, and Itel, dominate Nigeria's device market.
