Device financing in Nigeria: What are the options?

Photo By: Dennis Brendel on Unsplash

Device financing, though relatively new to Nigeria, is a very popular option around the world for the purchase of devices. Simply put, it is an option that allows you to take the device home while paying for it over a specified period. Most providers require a deposit upfront at a percentage of the value of the device, with the balance being paid over a period of time. Others may require no deposit, but in this case, the price of the device may increase slightly. Both options consider your monthly income or credit record. Where this information is not readily available, they look at your mobile transaction patterns so they can create a profile for you and a device financing option best suited to your finances and needs. 

In a world where just about everything can be done from your smartphone or other devices, having a decent device that will perform the functions you need is becoming increasingly important. For a lot of people, given the state of the economy and how far money has to be stretched, paying for any device in full and upfront is tricky. Even saving is difficult because of inflation and other economic elements that come into play. Device financing then becomes a very viable option. Leading the pack with this option currently is MTN. 

Coming into Nigeria, MTN brought the same service offering as in South Africa, making sure customers from different income backgrounds are able to purchase gadgets and accessories. Looking at the South African MTN catalogue, you can see the many options available like the MegaDeals, SkyDeals, and phone type deals. They use these to entice customers, thus capturing a wider market. 

We will tell you about some options that have been introduced below.

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   MTN’s bundles

The MTN device financing offering via the Intelligra Bundle does more than give you a device. It allows for device upgrades and also comes with a bundle from the network. You will get a device and monthly SMS, a data bundle, and free minutes for voice calls until the device is paid up. You can choose to opt out after the device is paid up. It goes without saying that terms and conditions will apply. 

2. Access Bank and Slot

In conjunction with Slot, Access Bank is offering a device funding loan to salaried account holders with the bank. This is specifically for Samsung devices. The arrangement came into effect on 11th March 2022. This device funding loan does not require an equity contribution or a down payment; it is to be paid back in full over a period of 12 months. The partners also announced that customers would be able to swap out old devices for new ones in the Samsung S22 range, barring terms and conditions. 

Photo By: Zana Latif on Unsplash

3. iStore Nigeria

Much like the option above, the iStore is also offering a device funding option to users who have a preference for their brand. This option is available for all their Apple devices and is offered to customers who meet the requirements. It is being rolled out specifically for customers of Sterling Bank, and devices will be paid out over a period of 12 months. 

Photo By: Alex Bachor on Unsplash

While these are the current leading options on the market, there is an anticipation of more opportunities like this being made available to make it easier for an increased number of people to be financed according to their income bracket.  

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