Nigeria is the most populated country in Africa with estimated national Gross Domestic Product (GDP) of approximately $208bn USD (2008), while her economy is the third largest economy on the continent.  With a vibrant population of approximately 140million, Nigeria ranks alongside the largest emerging markets in the world, with reasonably skilled human resource capacity in virtually all industry segments, including information technology.  Nigeria is regarded as a virtually untapped market for the ICT industry. A unique feature of the country’s ICT environment is its thriving computer market.  It is reputed to be the largest on the continent even as it continues to expand rapidly. The computer market remains one of the most dynamic business sectors in Nigeria. From 2003, the combined PC markets of the West African countries of Nigeria and Ghana jumped nearly 14% in volume year-on-year to reach just under 250,000 units valued at almost $230 million in 2006. Falling average sales prices and heightened demand from businesses to integrate IT into their operations boosted PC sales. In 2008, sales figures for computers were about 407,621 in total, with 211,499 desktops and 196,122 laptops, respectively sold in Nigeria. These figures represent a remarkable leap in sales when compared to the numbers for 2007, which were 154,042 desktops and 77,966 laptops[1].

From 2003-2008, strong GDP growth and an increase in oil and non-oil, revenues spurred economic growth in Nigeria. This in turn generated momentum for the demand for PCs in all end-user segments in the country. Analysts say the Nigerian PC market, which is still in its infancy, is expected to expand by 21.5% annually on average over the next five years with a notable shift towards mobility which would increase Laptop and other mobile PC sales. However, Desktop Computers are the preferred form for most businesses and government agencies in the country. Reports say corporate organisations are still the biggest buyers of computers, with banks accounting for a good deal of the numbers.  A recent survey conducted by eShekels revealed that the number of desktops (71%) owned by businesses outweighs number of laptops owned.  See chart below.

Industry sources put the average cost of a desktop computer in the formal market at NGN 70,000 and the average cost of a laptop at NGN 100,000. At these prices the market would have been worth around NGN 34 billion last year. 

International brands, HP and Dell dominate the PC market although a high tempo of marketing activity driven by the strategic imperatives for acquiring a larger share of the market is noticeable, with both International and Local Brands committing significant resources in this direction. The companies are closely tracking emerging trends in the Business-to-Business (B2B) and consumer market segments of the Nigerian market for personal computers, workstations, enterprise servers and storage systems. In this regard, Dell Inc. has opened an operational office in Nigeria; this will see the global industry player push harder to acquire a larger stake in the nation's information and communication technology (ICT) market even as it competes against other US technology companies, many of whom have set up shop before now. Microsoft, HP, IBM and Cisco Systems, already have a direct presence in Nigeria.   These International brands enjoy higher sales volumes because of their popularity with computer users than the locally assembled computers.

As major global players continue to aggressively probe for opportunities in the Nigerian market, a crop of nimble and aggressive Nigerian computer makers have emerged. Most visible among these is Zinox Technologies. Others are Task Systems, AfriHub, Speedstar Computers, Brian Technologies and Omatek Computers, which with its listing on the Nigerian Stock Exchange in mid 2008 appears to have established itself very visibly in the sight of the consumer.

Nigeria has several busy and active computer markets. The most popular market is the Ikeja computer (village) market a.k.a Otigba market, in Lagos with daily turnover running into tens of millions of Naira. Otigba is however notorious for its booming trade in counterfeit products notably software and print inks. The negative image engendered by the counterfeit trade has spurred Computer Dealers in Otigba to take steps to clean up their act, with the launch of an umbrella association called Computer and Allied Product Dealers Association of Nigeria (CAPDAN), being one move in this direction. CAPDAN is poised to rebrand Otigba as a market for legitimate computer businesses, which retail and distribute original brands of computer hardware, software and allied products. Despite the risks associated with shopping at this market, it remains a prime port of call for PC users.  A PC market assessment study recently conducted by eShekels shows the two most popular purchase points (Authorised dealers and Computer village) for users in Lagos and its environs.

The Nigerian PC market has continued to thrive in all directions, as recent rapid advances in Telecommunications, increasing IT awareness (by businesses and individuals) and Internet-driven business activity (Radio, VSAT, Cybercafés, etc) have continued to drive growth in the market.  The resurgence of the Cybercafés, which has seen new cafés opening and the upgrade of facilities at existing cafés, is a significant contributory factor.   A substantial segment of the market also thrives on servicing the demand for second-hand computers and parts, which is quite large.    Financial institutions have played a key role in making computers more easily available to their customers by extending credit lines and other services to enable the acquisition of consumer goods. 

Computer penetration in Nigeria while still very low continues to grow rapidly and will be sustained by increasing awareness levels in the population, especially the youth, spurred by education, the internet and deliberate initiatives from stakeholders. In this respect the Federal Government driven “Computer for all Nigeria Initiative” (CANI), holds a lot of promise for investors.