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$40 smartphones face network reality check in Nigeria

by Joy Agwunobi
April 9, 2026
in Technology
Nigeria seeks local smartphone manufacturing to cut device costsĀ 

As Nigeria joins a growing list of African countries backing the rollout of ultra-low-cost smartphones, fresh concerns are emerging over whether existing telecom infrastructure can withstand the pressure of a surge in new users.

A recent analysis by network performance monitoring firm nPerf has warned that expanding access without a corresponding upgrade in network capacity could worsen congestion and ultimately undermine user experience. This concern is particularly relevant for Nigeria, where an estimated 54 percent of the population still lacks internet access despite years of digital expansion efforts.

The warning comes on the heels of an announcement at Mobile World Congress 2026, where the GSMA in collaboration with the Handset Affordability Coalition unveiled a plan to introduce $40 4G smartphones targeted at connecting millions of underserved users across Africa. While the initiative has been widely described as ambitious and potentially transformative, questions remain about the readiness of networks expected to support this influx.

Drawing from its 2025 performance data across Nigeria, Congo, and Ethiopia, nPerf reveals uneven current network capabilities.

In terms of speed, the findings reveal that all three countries continue to lag significantly behind global benchmarks, particularly those seen in Europe. Congo recorded the strongest overall performance, with average download speeds of 12.8 Mb/s and upload speeds of 6.26 Mb/s. Nigeria followed with download speeds of 9.97 Mb/s, while Ethiopia trailed at 6.73 Mb/s—levels that barely sustain uninterrupted standard-definition video streaming.

For prospective users of low-cost 4G smartphones, this underscores a critical point: affordability alone does not guarantee a functional digital experience. The quality and reliability of underlying network infrastructure will ultimately determine how effectively these devices can be used.

A deeper look beyond headline speeds reveals further disparities in real-world usage. Nigeria, for instance, leads the group in streaming performance with an index of 62.28 percent, suggesting that video playback is relatively stable. However, this advantage is offset by weak web browsing performance, which stands at just 27.36 percent. This limitation has broader implications, as it directly affects access to essential online services such as government portals, digital financial platforms, and e-commerce.

Congo presents a contrasting profile. While it boasts the lowest latency among the three countries at 123 milliseconds, an advantage for responsiveness it records the weakest streaming performance at 41.88 percent, indicating challenges in delivering consistent multimedia experiences.

Ethiopia, on the other hand, appears to face the most significant constraints. With latency reaching 258 milliseconds, more than double that of Congo, real-time applications such as video calls and interactive services become highly unstable. Although its browsing and streaming indices, at 35.52 percent and 49.89 percent respectively, fall within a mid-range bracket, the high latency significantly undermines overall usability.

nPerf notes that the success of the $40 smartphone initiative will depend heavily on how these structural weaknesses are addressed. The firm emphasises that increasing the number of connected users without strengthening network infrastructure risks creating bottlenecks that degrade service quality. However, it also points to a countervailing dynamic, as rising demand has historically driven telecom operators to scale up investments in capacity and coverage.

This demand-driven investment model appears to be central to the strategy of both the GSMA and the Handset Affordability Coalition, who are betting that broader access will stimulate further infrastructure development.

For Nigeria, the report identifies a clear priority area; improving web browsing performance. Addressing this gap will be critical to ensuring that new users can do more than just consume content, but also participate meaningfully in the digital economy.

Across the three markets analysed, the challenges differ, but the objective remains the same which is to ensure that expanded access translates into real, usable connectivity. The report added that without parallel improvements in network performance, the promise of affordable smartphones risks falling short, turning a well-intentioned inclusion effort into a frustrating user experience for millions.

Joy Agwunobi
Joy Agwunobi
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Onafriq, a pan-African payments company, is set to discontinue its Baxi agent banking business in Nigeria after five years, citing naira depreciation, rising operating costs and intensifying competition that have weakened the segment’s profitability. The planned shutdown will affect the agent banking operations conducted through Baxi under Onafriq Nigeria Payments Limited. However, the decision does not signal the company’s withdrawal from Nigeria, as it intends to retain its cross-border payments network and card issuing services in the country. In a statement, Onafriq said changes in Nigeria’s operating environment since 2024 had significantly altered the economics of its offline agent banking business, making the existing model unsustainable. The move marks a strategic shift for the company, which entered Nigeria’s agent banking market to expand access to financial services through a network of agents providing transaction services outside traditional bank branches. Onafriq attributed the decision to a combination of macroeconomic pressures and structural changes in the country’s payments industry. According to the company, naira depreciation and inflation have affected transaction volumes, increased operating expenses and undermined the sustainability of its agent banking operations. The growing adoption of instant account-to-account transfers has also changed the mix of transactions handled by agents, while heightened competition among payment service providers has put further pressure on margins. These developments have made it increasingly difficult for the business to remain viable under its existing operating structure, prompting the company to reassess its long-term strategy. Dare Okoudjou, founder and chief executive officer of Onafriq, said the decision to close the business was difficult, particularly given the efforts of employees, agents and business partners who helped build the Baxi network. ā€œWe entered Nigeria with conviction and commitment, but did not achieve the outcome we set out for. Closing this business was a difficult decision to arrive at, one that affects colleagues, agents, and business partners across Nigeria who poured their hearts and soul into building out the Baxi network,ā€ Okoudjou said. Despite the closure, he reaffirmed the company’s commitment to the Nigerian market, noting that the group would continue to serve customers through its payments network and card issuing operations. Onafriq entered Nigeria’s agent banking market in 2021 through the acquisition of Baxi, also known as Capricorn Digital Limited. The company said it continued investing in the business through 2023, with efforts focused on expanding and strengthening its agent network. However, a subsequent review of the business’s long-term prospects and financial sustainability led to the decision to wind down the operation. As part of the transition, Onafriq said agents onboarded through the Baxi platform had been moved to another principal bank, a step intended to facilitate continuity for the affected agents. The company has also directed agents to transfer their funds to their preferred principal bank within 30 days, adding that its teams would provide support throughout the transition process. Employees whose roles are linked to the agent banking business will also be consulted and supported during the wind-down, with Onafriq pledging to treat affected workers fairly.

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