High customs duty threatens phone affordability – Dealers

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The Phone and Allied Products Dealers Association says high customs duty is making mobile phones increasingly unaffordable for Nigerians.

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The President of PAPDA, Mr Ebiem Samuel, said this in an interview with the News Agency of Nigeria on Wednesday in Lagos.

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Samuel said that reducing customs duty on imported phones would lower prices, stimulate sales and make devices more affordable to Nigerians.

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He said that high customs duty had significantly increased the cost of importing mobile phones, making it difficult for dealers to offer devices at affordable prices.

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Samuel said that the rising cost of phones was putting pressure on consumers, particularly low-income earners who depended on mobile devices for communication, education and business.

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According to him, reducing the duty would enable importers to bring in phones at lower costs and ultimately translate into reduced prices for consumers.

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He said that lower phone prices would also encourage more Nigerians to acquire smartphones and participate actively in the digital economy.

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Samuel urged the Federal Government to review the customs duty on imported mobile phones as part of measures to improve affordability and promote digital inclusion.

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He said that a reduction in the duty would also stimulate sales in the sector, increase business activities and create a more favourable environment for phone dealers.

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The PAPDA president called for policies that would strike a balance between revenue generation and the need to keep essential digital devices within the reach of ordinary Nigerians.

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According to him, dealers incur additional costs after paying customs duty, including logistics expenses involved in moving imported devices into the market.

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“Our challenge here is the customs duty. It makes the phones very high.

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“After paying the customs duty and the logistics of bringing it down to your doorstep, it becomes very high,” he said.

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Samuel said that the high cost of devices was a major challenge to dealers because consumers were forced to pay more for mobile phones.

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He urged the Federal Government to review the duty regime, saying that lower charges would help the phone market grow.

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Samuel said that mobile phones remained critical to connecting Nigerians to the internet and the wider world.

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“Without a phone, you cannot access the internet. You cannot reach the world.

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“We reach the world through phones and devices, especially mobile phones,” he said.

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On local assembly of mobile phones, Samuel said that Nigeria was not yet adequately prepared, citing inadequate infrastructure.

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He said that the government would need to provide the necessary infrastructure and empower local players to make local assembly viable.

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Samuel also said that PAPDA was not involved in or informed about any current government initiative on the local assembly of mobile phones.

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He urged the government to create an enabling environment for local production while addressing the import-related costs affecting the industry.

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