Chinese smartphone manufacturer Vivo and Nigerian firm Credit Direct have launched a device financing scheme to increase smartphone penetration in Africa’s largest economy.
The partnership allows consumers to acquire Vivo devices by paying a 20% deposit, with the balance spread over six monthly instalments.
The initiative targets the "capital gap", a primary barrier to digital inclusion where high upfront costs prevent millions from accessing the digital economy.
Nigeria has an estimated 120 million smartphone users, but millions remain disconnected due to a lack of disposable income for lump-sum investments.
The partnership addresses this directly by providing payment plans that do not strain monthly income, said Chukwuma Nwanze, MD of Credit Direct.
The model will be integrated across Vivo's network of 600 stores in 25 states, with a first-year target of 200 000 devices.
Toni Liu, CEO of Vivo Nigeria said Credit Direct’s infrastructure, backed by FCMB Group, provides the necessary scale that previous attempts lacked.
The move reflects a trend where Buy Now, Pay Later models drive African hardware sales.
Vivo and Credit Direct face a saturated market, competing with M-KOPA, which has provided credit to over one million Nigerians, and Easybuy, a dominant player in retail stores. Traditional banks, including Stanbic IBTC, offer "Smart Loans" to the same clientele.
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