The Middle East and Africa (MEA) smartphone market is witnessing a robust 5G-driven surge, with South Africa, Egypt, and Kenya emerging as regional powerhouses, while Nigeria grapples with significant hurdles in its 5G rollout.
According to the latest research from Counterpoint’s Market Monitor service, smartphone shipments in the MEA grew by three percent year-on-year (YoY) in the second quarter (Q2) of 2025, propelled by festive sales, improving economic conditions, and stronger local currencies.
However, Nigeria’s ambition for a comprehensive 5G network remains stifled by economic and infrastructural challenges, with the Nigerian Communications Commission (NCC) reporting a modest increase in 5G market share to 3.17 percent in July 2025, up from 3.07 percent in June 2025.
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The MEA region’s 5G adoption soared to 37 percent in Q2 2025, fuelled by affordable 5G smartphones priced under $100 from brands like TECNO, OPPO, and Itel, particularly in markets like Nigeria.
South Africa, Egypt, and Kenya have led the charge, with the $200-$599 price segment capturing a 56 percent market share. South Africa’s growth was bolstered by investments from telecom giants MTN and Vodacom, while Egypt benefited from tax reforms and local production incentives, such as IMEI whitelisting.
Kenya’s mobile-first economy, driven by M-Pesa and micro-lending partnerships, has further accelerated 5G smartphone uptake.
Yang Wang, senior analyst noted, “The MEA smartphone market entered 2025 with a strong recovery, with average selling prices (ASPs) rising seven percent YoY as consumers shift toward higher-end models with advanced features like AI translation, 5G connectivity, and 120Hz AMOLED displays.”
In contrast, Nigeria’s 5G journey is mired in setbacks. Despite the commercial launch of 5G services in 2022 by MTN, Airtel, and Mafab Communications, who collectively paid over $820 million for licenses, penetration remains low.
The NCC reported that only 5.2 million of Nigeria’s 171.2 million active telephone subscribers were on 5G networks as of August 2025, with the slight uptick to 3.17 percent market share in July reflecting slow progress.
Aminu Maida, NCC’s executive vice chairman, acknowledged that operators may have overpromised on delivering nationwide coverage within a year. “Forex scarcity is a primary bottleneck,” Maida said, noting that Nigeria’s reliance on imported telecom equipment has been exacerbated by limited access to foreign currency, hampering infrastructure expansion.
Karl Toriola, CEO of MTN Nigeria, highlighted the affordability of 5G-enabled smartphones as a critical barrier. With prices ranging from N120, 000 ($75) to over N2 million ($1,250), these devices are out of reach for many Nigerians, particularly the 88.4 million living in extreme poverty.
“The biggest barrier is the cost of handsets,” Toriola stated, emphasising efforts to collaborate with the Ministry of Communications to promote local smartphone assembly and reduce costs through financing models via MTN’s MoMo platform.
Despite these challenges, regulatory reforms, including a 50 percent tariff hike approved in January 2025, have unlocked $1 billion in equipment investments since June, aimed at upgrading base stations and expanding fibre backbones.
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Nigeria’s 5G rollout is further complicated by operational issues. The NCC reported approximately 1,100 daily fibre cuts, 545 access denials, and 99 cases of theft involving generators and batteries, severely impacting network reliability.
To address this, the NCC signed a Memorandum of Understanding with federal and state ministries to improve coordination and reduce disruptions from road construction and vandalism.
Yahaya Ibrahim, MTN Nigeria’s chief technical officer, noted that only 4.9 million 5G-capable handsets, primarily iPhone 13 models and above, are in use nationwide.
MTN is leveraging AI for demand planning and fault detection to optimize 5G deployment in high-demand urban centers like Lagos and Abuja, avoiding inefficient investments in areas with low device penetration.
Ibrahim, stated, “We won’t deploy 5G where there are no 5G handsets. By leveraging AI for demand planning and fault detection, we optimize 5G deployment in high-demand urban centers like Lagos and Abuja, avoiding inefficient investments in areas with low device penetration.”
The broader MEA market, however, paints a more optimistic picture. Chinese brands, holding a 59 percent market share in Q2 2025, have capitalized on the demand for affordable 5G devices, while global players like Samsung continue to dominate the high-end segment.
The budget segment (under $100) remains the largest, supported by financing models and the migration from feature phones.
Meanwhile, the $200-$299 price band has shrunk as consumers gravitate toward premium devices with advanced features. Wang observed, “Brands are tailoring offerings to both premium and budget-conscious buyers, with Q2 2025 showing a clear shift across price segments.”
Nigeria’s data consumption reflects its digital appetite, with the NCC reporting a surge to 1.13 million terabytes in July 2025, up from 1.04 million in June, driven by video streaming on platforms like Netflix and TikTok.
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However, the high cost of 5G devices and data plans continues to limit adoption. South Africa, with over 10.8 million 5G subscribers by late 2024, remains the continental leader, while Egypt and Kenya benefit from stronger regulatory frameworks and economic stability.
