• Vivo signed a financing agreement with Credit Direct to boost smartphone sales in Nigeria through installment payments.
• Customers will pay 20% upfront and spread the balance over six months, with a target of 200,000 devices in year one.
• Nigeria’s smartphone penetration stood at 27% in 2024, highlighting strong growth potential despite affordability constraints.

Chinese smartphone maker Vivo signed a memorandum of understanding last week with Nigerian consumer finance company Credit Direct to launch a device financing program in the country. This initiative aims to remove barriers to smartphone ownership while supporting Vivo’s expansion strategy in Nigeria.

Under the terms of the agreement disclosed on Monday, April 20, customers can purchase a Vivo smartphone by paying 20% upfront and spreading the remaining balance over six months. Credit Direct will provide the financing. Both companies target sales of more than 200,000 devices in the first year.

“People who need smartphones but cannot pay upfront can now do so through a payment plan that does not strain their monthly income. Our mission has always been to make financial solutions a universal opportunity, and this is exactly what this represents in practice. I am truly excited about what we can achieve together,” said Chukwuma Nwanze, Chief Executive Officer of Credit Direct.

This initiative comes as smartphone financing programs gain momentum across Africa, where device affordability remains a key barrier to mobile internet adoption.

According to the GSMA, the median cost of an entry-level smartphone in Nigeria fell from $84 in 2018 to $18 in 2024, reducing its share of average monthly income to 26%. However, currency depreciation and rising living costs have offset much of this progress. For the poorest 40% of Nigerians, an entry-level smartphone still represents 56% of monthly income, while it accounts for 73% for the poorest 20%, highlighting persistent affordability constraints among vulnerable households.

Despite these challenges, smartphone ownership reached only 27% in Nigeria in 2024, according to the GSMA, leaving significant room for growth.

Data from StatCounter shows that Vivo held a 1.18% market share at the end of March 2026. The company remains far behind market leader Tecno with 18.72%, followed by Infinix at 16.28%, Samsung at 15.4%, Apple at 14.15%, and Xiaomi at 8.17%. Other players such as Oppo, Itel, and Huawei also operate in the market.

Isaac K. Kassouwi