No More Feature Phones? MTN, Other Telcos Eye N55K Smartphones for Millions in Nigeria by 2026
- Major telecom operators plan to introduce ultra-affordable smartphones in Nigeria and five African countries by 2026
- Nigeria selected as a key pilot market to bridge the digital divide and boost internet access for millions
- Rising chip prices pose a significant challenge, potentially impacting the affordability of entry-level smartphones
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Millions of Nigerians could soon gain easier access to the internet as major telecom operators move to introduce ultra-affordable 4G smartphones priced at about N55,000.
A coalition of Africa’s largest mobile network providers has unveiled plans to roll out entry-level smartphones in Nigeria and five other African countries in 2026, in a bold push to bring millions of people online for the first time.
Source: Getty Images
The initiative, coordinated by the GSMA’s Handset Affordability Coalition, is backed by leading telecom operators including MTN, Airtel, Axian Telecom, Ethio Telecom, Orange and Vodacom.
The coalition aims to deliver internet-enabled devices at a target price of around $40 (about N55,000 to N70,000 depending on exchange rates) by leveraging large-scale production, strategic partnerships with device manufacturers and supportive government policies.
Six African countries chosen for pilot programme
Nigeria has been selected as one of the first markets for the pilot programme, alongside Rwanda, the Democratic Republic of Congo, Ethiopia, Tanzania and Uganda.
The telecom companies involved have already signed a memorandum of understanding with smartphone manufacturers to set minimum technical standards for the devices while aggregating demand across multiple markets to reduce production costs.
The move reflects a growing recognition that affordable smartphones remain the biggest barrier to internet adoption in Africa, even as mobile network coverage continues to expand across the continent.
According to GSMA data, only 38 per cent of Africa’s population used mobile internet in 2024, significantly below the global average of 68 per cent. Yet nearly 960 million Africans live in areas with network coverage but remain offline, accoording to a report by BusinessDay.
Industry leaders believe cheaper smartphones could help bridge this digital divide.
“Low-cost smartphones are the gateway to digital and financial inclusion,” said Vivek Badrinath, Director General of the GSMA, noting that billions of people globally have access to mobile networks but still do not use the internet.
Nigeria seen as key test market
Nigeria, Africa’s most populous nation, is expected to play a crucial role in determining the success of the project.
Despite the rapid rise of fintech, streaming platforms and online marketplaces in the country, millions of Nigerians still rely on basic feature phones that cannot fully access the internet.
Telecom operators believe cracking Nigeria’s entry-level smartphone market could provide a model for expanding affordable connectivity across other emerging economies.
To accelerate adoption, operators are expected to introduce bundled data packages, instalment payment plans and expanded distribution networks once the devices hit the market.
The smartphones’ technical specifications were first outlined during MWC Kigali 2025, where the coalition agreed on baseline requirements that keep production costs low while ensuring compatibility with Africa’s 4G networks.
Rising chip prices could threaten plan
While the initiative has generated excitement, it also faces major challenges from the global semiconductor supply chain.
Research firms warn that memory chip prices could surge sharply through 2026, as manufacturers increasingly prioritise high-margin artificial intelligence infrastructure over low-cost consumer devices.
According to industry forecasts, global smartphone shipments could decline slightly in 2026 while component costs rise between 8 per cent and 15 per cent, putting pressure on ultra-cheap smartphone models.
Memory prices alone could climb as much as 40 per cent by mid-2026, potentially squeezing margins for manufacturers trying to keep device prices near the N55,000 mark.
Governments may play key role
To maintain affordability, the GSMA has urged African governments to reduce or eliminate import duties and taxes on entry-level smartphones.
Industry leaders say policy support could help offset rising global production costs and ensure the devices remain accessible to low-income consumers.
At the same time, the GSMA is exploring complementary initiatives such as AI-powered language tools that will allow users to navigate online services in local languages.
A potential digital revolution
If the programme succeeds, telecom executives believe tens of millions of Africans could join the mobile internet economy over the next few years.
Greater access to smartphones would open the door to digital payments, online education, e-commerce and telemedicine, particularly in rural and underserved communities.
Source: Getty Images
For telecom operators facing slowing growth in major cities, connecting Africa’s offline population represents not just a social mission but also one of the biggest growth opportunities in the continent’s digital future.
Whether these low-cost smartphones can withstand global supply shocks may ultimately determine how quickly that digital transformation becomes reality.
New telecom firm in Nigeria targets one million subscribers
Legit.ng earlier reported that a newly launched telecom company, Lebara, has officially entered the Nigerian telecommunications market with an ambitious plan to attract up to one million subscribers within its first year of operations.
The company made its debut through a soft launch, positioning itself as a niche-focused Mobile Virtual Network Operator (MVNO) among the 46 MVNO licences issued in Nigeria.
Rather than competing directly with established telecom giants for the mass market, the company says it will focus on underserved and specialised segments of Nigeria’s growing digital population.
Source: Legit.ng
