By Iroyin Yoruba Television
Nigeria’s smartphone market has recorded a significant expansion, with ownership rising to 75 percent from 64 percent in 2023, highlighting the growing importance of mobile devices in the country’s digital economy and changing the way millions of Nigerians communicate, work, learn, shop and access financial services.
The latest findings are contained in the Nigeria Smartphone Study: A Nationwide Analysis of Smartphone Ownership and Digital Application Usage, produced by KPMG in collaboration with Orange Group Nigeria. The study surveyed 13,251 respondents across 12 major Nigerian cities and examined smartphone ownership, application usage, consumer behaviour and broader patterns in Nigeria’s rapidly changing digital environment.
The findings provide a detailed picture of a country moving increasingly toward mobile-first digital participation.
Smartphones are no longer being used primarily for voice calls and text messages. They have become gateways to banking, digital payments, online shopping, entertainment, education, transportation, business management, social communication and emerging artificial-intelligence tools.
The shift is taking place alongside continued growth in internet usage. Data from the Nigerian Communications Commission cited in the study showed that Nigeria had approximately 157 million internet subscribers in May 2026, while national data consumption exceeded 1.5 million terabytes during the same month.
FROM COMMUNICATION DEVICE TO ECONOMIC TOOL
The increase in smartphone ownership reflects a broader transformation in how Nigerians participate in economic activity.
For many users, a smartphone now serves as a bank branch, marketplace, classroom, office, entertainment centre and communication platform in a single device.
Small businesses increasingly depend on mobile applications to communicate with customers, receive payments, advertise products, manage orders and maintain relationships with suppliers.
For workers and professionals, smartphones provide access to email, cloud storage, video conferencing, social platforms and productivity applications.
Students use mobile devices to access educational resources, communicate with institutions and conduct research, while consumers increasingly use applications to compare products, make payments and arrange transportation.
The KPMG study said smartphones have evolved into important enablers of economic participation, innovation and enterprise, reflecting the growing relationship between mobile connectivity and economic activity in Nigeria.
This transformation is particularly relevant to Nigeria because of its large and youthful population.
A substantial share of Nigerians are young people who have grown up in an environment where mobile technology and internet-based communication are increasingly normal parts of everyday life.
That demographic structure provides a large potential market for digital services while also creating opportunities for Nigerian technology companies, telecommunications operators, financial-technology businesses and online entrepreneurs.
INTERNET USE CONTINUES TO EXPAND
The rise in smartphone ownership is occurring alongside increasing internet consumption.
The study cited NCC figures showing that active internet subscriptions increased to 157 million in May 2026, while data consumption reached more than 1.5 million terabytes during the month.
The figures demonstrate how much digital activity is taking place through Nigeria’s telecommunications infrastructure.
People are not simply connecting to the internet more frequently; they are also using it for a wider range of activities.
Financial transactions, social networking, video content, online learning, digital commerce and business communications all contribute to rising demand for mobile data.
For telecommunications operators, this creates opportunities for continued investment in network capacity.
For businesses, it means that digital platforms are becoming increasingly important channels for reaching consumers.
For government and regulators, however, the rapid growth also creates a responsibility to ensure that connectivity remains affordable, secure and accessible beyond major urban centres.
WHATSAPP AND SOCIAL PLATFORMS REMAIN CENTRAL
The study also illustrates how deeply mobile applications have become embedded in the daily lives of Nigerian smartphone users.
WhatsApp recorded very high penetration among surveyed smartphone users, while Facebook and TikTok also recorded substantial usage.
The popularity of messaging and social platforms has changed how Nigerians communicate with friends, relatives, customers and businesses.
For small enterprises, social media can function as a low-cost marketing channel.
A trader can advertise a product through a status update, communicate with customers through messaging, receive payment electronically and arrange delivery without operating a traditional physical advertising system.
The same infrastructure can be used by freelancers, content creators, artisans and other independent workers to find customers beyond their immediate communities.
This is one reason smartphone expansion matters beyond telecommunications statistics.
Every additional smartphone user potentially represents another participant in Nigeria’s digital marketplace.
FINTECH IS BECOMING PART OF EVERYDAY LIFE
Financial technology is another area being transformed by smartphone adoption.
The study found substantial use of fintech applications among Nigerian smartphone users, with OPay recording the highest penetration among the fintech platforms measured, followed by PalmPay and other digital financial services.
The growth of mobile financial services has changed the way many consumers interact with money.
Payments that previously required visits to bank branches can increasingly be carried out through mobile applications.
Customers can transfer money, pay bills, purchase airtime, receive payments and perform other financial transactions through their phones.
For small businesses, digital payment systems can also reduce dependence on cash transactions and make it easier to receive money from customers in different locations.
However, greater dependence on digital finance also increases the importance of cybersecurity, consumer protection and financial literacy.
As more economic activity moves onto mobile platforms, fraudulent transactions, identity theft, account compromise and other digital risks become increasingly important concerns.
The expansion of smartphone ownership therefore creates opportunities and responsibilities at the same time.
THE DIGITAL ECONOMY IS NOT YET EQUALLY ACCESSIBLE
Despite the impressive growth in smartphone ownership, the study makes clear that Nigeria's digital transformation still has significant limitations.
More than one-third of mobile subscribers were still using 2G technology as of May 2026, according to the research. This means that smartphone ownership alone does not necessarily guarantee access to fast or reliable digital services.
A person may own a smartphone but still struggle to use video services, online learning platforms, cloud applications or other data-intensive services if the available network is slow or unreliable.
Affordability is another challenge.
The cost of smartphones, mobile data and electricity can affect how consistently people are able to participate in the digital economy.
Nigeria also faces gaps in digital skills and cybersecurity awareness.
People who are unfamiliar with online security practices can become vulnerable to scams, fraudulent links, account theft and other forms of cybercrime.
This creates a distinction between smartphone ownership and meaningful digital participation.
Having the device is only the first step.
Reliable connectivity, affordable data, digital skills, electricity, secure platforms and useful online services are all necessary for people to benefit fully from the digital economy.
A LARGE MOBILE INTERNET USAGE GAP REMAINS
Another challenge is the difference between network coverage and actual internet usage.
Research cited in reports on Nigeria's digital market indicates that a large number of Nigerians live within areas where mobile broadband coverage exists but do not actively use mobile internet services.
This gap can be influenced by the cost of devices, data prices, digital literacy, electricity availability and the perceived usefulness of online services.
The implication is that Nigeria still has substantial room for digital expansion even as smartphone ownership reaches 75 percent.
The next phase may therefore depend less on simply putting smartphones into people's hands and more on improving the conditions that allow people to use those devices productively.
OPPORTUNITIES FOR BUSINESSES
The growing smartphone market is also changing the way companies approach Nigerian consumers.
Businesses can increasingly use digital information to understand customer preferences, identify purchasing patterns and develop services around mobile behaviour.
The research was partly designed to provide companies and investors with insight into consumer preferences and the changing digital ecosystem.
This information can influence decisions about product design, advertising, distribution and customer service.
Companies that understand how Nigerians use their smartphones may be better positioned to design services that match actual consumer behaviour.
For Nigerian entrepreneurs, the expansion also creates opportunities to build businesses around mobile platforms.
These opportunities extend beyond traditional technology companies.
Retailers, farmers, transport operators, entertainment businesses, educators, financial-service providers and professional service businesses can all use mobile technology to reach customers and manage operations.
The result is a digital economy that increasingly cuts across traditional industry boundaries.
ARTIFICIAL INTELLIGENCE IS ENTERING THE MOBILE ECOSYSTEM
The smartphone is also becoming an important gateway to artificial intelligence.
The study noted increasing awareness and use of AI-related tools, showing that smartphones are evolving beyond conventional communication and entertainment functions.
AI applications can potentially support students with research, help businesses analyse information, assist workers with productivity tasks and provide new tools for content creation.
However, greater AI access also raises questions about digital literacy, misinformation, privacy, intellectual property and responsible use.
As AI becomes more accessible through smartphones, the ability of users to distinguish reliable information from inaccurate or manipulated content becomes increasingly important.
Nigeria's digital future will therefore depend not only on the number of connected people but also on the quality of their digital skills.
WHAT THE NUMBERS MEAN FOR NIGERIA
The increase from 64 percent smartphone ownership in 2023 to 75 percent in 2025 represents a substantial change in a relatively short period.
It demonstrates the speed at which mobile technology is becoming integrated into Nigerian society.
But the figures should not be interpreted as evidence that the digital divide has disappeared.
Instead, they show that Nigeria has moved into a new phase of digital development.
The central question is increasingly shifting from whether Nigerians can access smartphones to whether they can use those devices reliably, affordably and safely to improve their economic and social opportunities.
The continuing presence of 2G users, affordability constraints, infrastructure limitations, cybersecurity concerns and digital-skills gaps demonstrates that significant work remains.
At the same time, the growth in smartphone ownership provides a foundation for businesses, entrepreneurs and public institutions to expand digital services.
THE ROAD AHEAD
Nigeria's mobile economy is likely to remain an important part of the country's broader economic transformation.
As smartphone adoption expands, companies will need to understand changing consumer behaviour, while policymakers and regulators will face increasing pressure to improve digital infrastructure and protect consumers.
Telecommunications investment will remain important, but so will affordable devices, competitive data pricing, reliable electricity and stronger cybersecurity systems.
Education will also play a central role.
A digitally connected population needs the skills to use technology productively rather than simply consume content.
Schools, universities, businesses and public institutions can all contribute to developing those skills.
The latest smartphone study therefore presents a picture of both progress and unfinished work.
Nigeria now has a significantly larger smartphone-owning population than it did a few years ago, while mobile internet usage and data consumption continue to rise.
Smartphones are becoming tools for business, finance, education, communication, entertainment and innovation.
Yet the country's digital transformation will ultimately be measured not only by ownership figures but by what Nigerians are able to accomplish with the technology.
The challenge for the next stage is to turn expanding connectivity into wider economic participation.
If affordability, infrastructure, digital skills and cybersecurity are addressed alongside continued technological innovation, the country's growing smartphone base could provide an important platform for entrepreneurs, consumers, workers and businesses to participate more fully in the digital economy.
The 75 percent ownership figure is therefore more than a technology statistic. It is an indication of how rapidly everyday economic and social activity in Nigeria is moving toward mobile platforms — and a reminder that the next challenge is ensuring that the benefits of that transformation reach as many people as possible.