Home Business High customs duty threatens phone affordability – PAPDA

High customs duty threatens phone affordability – PAPDA

 

The Phone and Allied Products Dealers Association (PAPDA) says high customs duty is making mobile phones increasingly unaffordable for Nigerians.
 
The President of PAPDA, Mr Ebiem Samuel, said this in an interview with the News Agency of Nigeria (NAN) on Wednesday in Lagos.
 
Samuel said that reducing customs duty on imported phones would lower prices, stimulate sales and make devices more affordable to Nigerians.
 
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.
 
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.
 
According to him, reducing the duty will enable importers bring in phones at lower costs and ultimately translate into reduced prices for consumers.
 
He said that lower phone prices would also encourage more Nigerians to acquire smartphones and participate actively in the digital economy.
 
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.
 
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.
 
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.
 
According to him, dealers incur additional costs after paying customs duty, including logistics expenses involved in moving imported devices into the market.
 
“Our challenge here is the customs duty. It makes the phones very high.
 
“After paying the customs duty and the logistics of bringing it down to your doorstep, it becomes very high,” he said.
 
Samuel said that the high cost of devices was a major challenge to dealers because consumers were forced to pay more for mobile phones.
 
He urged the Federal Government to review the duty regime, saying that lower charges would help the phone market grow.
 
Samuel said that mobile phones remained critical to connecting Nigerians to the internet and the wider world.
 
“Without a phone, you cannot access the internet. You cannot reach the world.
 
“We reach the world through phones and devices, especially mobile phones,” he said.
 
On local assembly of mobile phones, Samuel said that Nigeria was not yet adequately prepared, citing inadequate infrastructure.
 
He said that government would need to provide the necessary infrastructure and empower local players to make local assembly viable.
 
Samuel also said that PAPDA was not involved in, or informed about any current government initiative on the local assembly of mobile phones.
 
He urged government to create an enabling environment for local production, while addressing the import-related costs affecting the industry. (


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