How Refurbished Electronics Can Play A Vital Role in The Economic Development of Nigeria
Is it smart to purchase a device that has been used or unboxed, in exchange for a significant discount? Africa, world’s second largest populous continent holds the hidden answer to this significant question. We will discover it by exploring the markets of the continent’s youngest country with an emerging middle-class market and growing population.
Yes, we are talking about the Giant of Africa – Federal Republic of Nigeria. Nigeria has been blessed with one of the most valuable commodities in the world, namely ‘Oil and Gas’. The exports from the seventh largest gas reserve used to be the biggest chunk of the gross domestic product (GDP). However, due to the decline in prices of global crude oil, the country witnessed a sharp decline in its GDP in 2015-16. In the previous year 2016-17, a significant growth in the consumer market had substantially helped in sustaining the $400 billion GDP, which is the highest in all of Africa.
Nigeria shares its borders with Chad, Benin, Cameroon, Niger, the shore of Gulf of Guinea and the Atlantic Ocean. The six ports that Nigeria has in the Atlantic Ocean generate ample business opportunities. Nigeria made it to the world’s top 20 economies list with a purchasing power parity figure close to 1 trillion in the year 2015. It is the only African country to be on the list of the “next eleven” economies in the world.
Reasons for considerable rise in the consumer electronics market in Nigeria
A mixed economy market with a democratically elected government, abundant cheap labour, and natural resources was always constant. However, in the recent years, several factors have emerged that are driving the growth of consumer electronics market in Nigeria. Listing some of the most glaring ones.
The Decline in oil prices
Nigeria faced its worst economic crisis when the global crude oil prices sharply declined in 2015-16. It drastically declined the government revenues and slowed its growth. That is when the economy started looking beyond Oil and thus emerged non-oil sectors like telecommunications, wholesale/retail trade, Agriculture and others.
Urbanization and increase in wealth
Demographically Nigeria represents a huge market with its current estimated population of 184 million (by National Population Commission). That is about more than twice the population of United Arab Emirates (UAE). It is the most populous country in Africa; in fact, it is among the top populous countries in the world.
As per the World Bank category, it falls under the lower middle-income group that means the majority of Nigerians have limited disposable income. However, due to rapid urbanization, a rise in job opportunities in the manufacturing & infrastructure industry has increased the purchasing power of the lower middle class, cascading to a higher demand for consumer products. Presently consumer spending is a major contributor in GDP.
Rise of education, telecom, Internet in the young country
Nigeria is called “nation of youths” as more than half of the population is under the age of 25 years. This young country comes third after India and China in the world’s young population list.
With the advancement in the telecom and internet services in Africa, the young nation now has more exposure to world education and knowledge, and hence spending on technology-based consumer goods is shooting up. Moreover, low disposable income and limited purchasing capacity of youth have created a surge in the used electronics market in Nigeria. For a small company or even for individuals it is wise to buy used laptops and other consumer electronic goods. These devices are qualitatively at par with new devices and come in fractional prices proving to be pocket-friendly. Therefore, there is a substantial demand for used electronics like laptops, desktops in the global market.
What is a Refurbished Electronic?
Before we take a deep dive into the need of refurbished electronics, let us understand what is a refurbished electronic? An electronic device that is been returned to the manufacturer or a vendor for certain malfunctionality reason or for some cosmetic upgrades and is available in the market for reselling after thorough testing.
Advantages of Using Refurbished Electronics
Low on Cost – The prices of these refurbished products are much lower than the original cost, some of them even go as low as 50%. Opting for the refurbished or second hand counterparts of new devices helps you save big on your IT investments. The purchase of used electronic devices in companies can also be optimized by dividing company resources on the basis of their usage of IT equipment.
Double Quality Assurance Test – Even brand new electronics purchased by paying full price run the risk of being defective or can malfunction. Sad to say, consumers regularly face such problems where the new gadgets just seize to work. However, certified refurbished electronics bought from a qualified refurbisher, go through multiple high levels of quality tests before it hits the shelf to be sold again. Therefore, there is a higher chance of getting a non-defective, high-quality product.
As good as new -Not all refurbished electronics are recycled, repaired or used electronics. Most of them are open box mobiles or laptops which were returned due to a wrong order, colour, or change of mind. At times, there are demo pieces from an electronic showroom that are not sold to customers but later offered at a discounted price. So, there is a high chance of getting a new piece at rock bottom prices.
Outdated for one is latest for some – The tech-obsessed consumers from developed countries are caught up in buying the most anticipated, hyped, new gadgets in the market. As seen in the cult of iPhone, where the world is witnessing a technological change in a short time, a 6 months old perfectly functioning iPhone is quickly replaced with a new one. As it is rightly said, “one man’s trash is another man’s treasure”. These so-called outdated perfectly functional gadgets are collected and after thorough testing by refurbishing companies are available for selling purposes. These refurbished electronics are then exported to other countries for resale at lower prices.
Save the Environment – “A journey of a thousand miles begins with a single step.” A small step to buying one used laptop will reduce the risk and effort involved in e-waste management. Corporates realise that they are the largest producers of e-waste, hence, they take their corporate social responsibility seriously by finding eco-friendly recycling solutions to reduce the carbon footprint.
How To Identify the Right Refurbished Products In Africa – Nigeria?
The market for second hand electronics in Nigeria has continued to dominate the retail market since last few years. As “Every cloud has a silver lining”, there is also a flip side to it. The used electronics market in Nigeria was fast becoming the dumping ground for discarded products by foreign countries. As highlighted by National Environmental Standards and Regulation Enforcement Agency (NESREA), these untested potentially hazardous electronics possess a serious threat to lives and the environment. The new middle-class African consumer is clear on their needs and expectations hence there is a strong demand for competitively priced products.
Why Veracity World is the ultimate Refurbished Products destination for Nigeria?
Fresh trends in the consumer electronics market of Nigeria is much needed. This need of the hour can be fulfilled by importing refurbished electronics from UAE that comply with the latest technologies available in the market. Development of internet retailing channels brings one of the pioneers from the UAE, “Veracity World” to Nigeria. The company that has a huge market in UAE has now decided to export its quality-refurbished products and services to all major markets in Africa.
Veracity World invites importers in Nigeria to get in touch for any bulk requirement inquiries. Veracity world offers e-waste management solutions by way of refurbishing, recycling, re-marketing, & responsible disposition of e-waste. The company deals in bulk buying and selling of used electronics from the UAE and other markets. Once the procurement is done, the team works on a detailed refurbishment and repairing process.