NIGERIA MOBILE TRENDS REPORT

2017 L o a d i n g . . .

- Mobile Video - Mobile Money - M-commerce

- Active mobile subscribers by mobile operators.- Active voice and internet subscriptions.- Market share of mobile by browser.

Top weekly smartphone and desktop online activities.Nigerian behavioural study on future opportunitiesin other tech sectors.

GENERAL OVERVIEW

- Mobile Usage in Nigeria - Share of desktop versus Mobile Traffic

Mobile traffic comparisons -- Web usage by operating system and Device Vendor. - Top 20 Multi-sim phone use comparisons.

MOBILE TRENDS

MOBILE LIFESTYLE

-

-

NIGERIAN MOBILE MARKET

OVERVIEW OF TH

E

TOTAL POPULATION

192.0 MILLION

74%MILLION

MOBILEPENETRATION

(ACTIVE LINES VS POPULATION)

NUMBER OFACTIVE MOBILE

LINES

91.5

NUMBEROF MOBILE

INTERNET USERS

Source: Worldometer, NCC, Stat Counter

47% 30%

SMARTPHONE PENETRATION

IN NIGERIA

142.6 MILLION MILLION

MOBILEINTERNET

PENETRATION(MOBILE INTERNET USERS

VS POPULATION)

Source: Statcounter

Nigeria India

South Africa Indonesia Thailand

Turkey Poland

United Arab Emirates China

Saudi Arabia Malaysia

Global Average Mexico

Argentine Singapore

Spain Phillipines

United StatesSouth Korea

AustraliaVietnam

United KingdomHong Kong

Egypt Italy

81%

Nigeria remains world’s most mobilized country, mobile traffic grew from 76% to 81%

79% 78%

69% 66%

61% 57% 57%

56% 55%

53% 50% 50%

46% 44%

42% 38%

37% 36% 36%

34% 34%

33% 31% 31%

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

GermanyBrazil

Canada Japan

France Russia

30% 30%

29% 28%

23% 16%

Nigeria

Bangladesh

Tanzania

El Salvador

Guatemala

Honduras

Ukraine

Armena

India

Phillipines

66%

63%

58%

57%

57%

56%

53%

49%

48%

48%

0% 10% 20% 30% 40% 50% 60% 70%

Nigerian usage of multi-sim phones is highest in the world

Web usage by OS Name Country: Nigeria

Android

iOS

RIM

Windows Phone

Nokia OS

Unknown

Other

Symbian

LG proprietary

Samsung proprietary

Web usage by Device VendorsCountry: Nigeria

25%

20%

15%

10%

5%

0%

Sam

sung

Appl

e

Tecn

o

Infin

ix

Blac

kber

ry

Unk

now

n

Gio

nee

Nok

ia

Mic

roso

ft

HTC

Device Atlas, 2017

Android is clearly still the preferred mobile operating systemused in Nigeria

Device Atlas, 2017

Share of Desktop versus mobile trafficin Nigeria

Mobile traffic overtook desktop traffic since 2012, and has continued to dominate since then.

Mobile Traffic Desktop Traffic

2014 2015 2016 2017

7378 80 81

2519

13 13

NIGERIAN MOBILE TRENDS

Year

Globacom

Airtel

MTN

9mobile

2014

2015

28,486,530

27,989,580

60,493,053

21,559,667

2016

32,999,384

32,268,301

61,252,387

22,161,290

2017

34,608,793

33,866,798

57,045,721

21,877,542

Growth of Active Mobile Subscribers by Operator

from 2014 – 2017

Market Shareby Mobile Operator

37,411,407 34,656,605 53,093,756 18,022,674

Source: NCC 2017

Market Share, June 2017

13%

26%

24%37%

9mobile

Globacom

Airtel

MTN

Top 5 states with Activevoice subscription

0%

2%

4%

6%

8%

10%

12%

14%

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

LAGOS OGUN KANO OYO KADUNA

% o

f tot

al n

umbe

r

Activ

e Vo

ice

Subs

crip

tion

Top 5 States

Active Voice Subscription % of total number (153,299,535)

Source: National Bureau of Statistics

Top 5 states with Activeinternet subscription

Lagos state leads with the highest voice subscription in Nigeria

0%

2%

4%

6%

8%

10%

12%

14%

16%

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

LAGOS OGUN OYO KANO FCT%

of t

otal

num

ber

Activ

e in

tern

et S

ubsc

riptio

n

Top 5 States

Active Internet Subscription % of total number (93,776,711)

...but Abuja enters the top 5 in terms of statesinternet subscription in Nigeria

Source: National Bureau of Statistics

Opera

Chrome

UC Browser

Blackberry

Android

Safari

IE Mobile

SamsungInternet

Puffin

Other

53.28

20.18

13.8

3.57

2.92

1.75

1.73

1.05

0.98

0.75

0% 10% 20% 30% 40% 50% 60%

Market Share of mobile browser

Source: Statcounter, 2017

Opera is still the preferred mobile browser

Nigerian behavioural studies shows the future opportunities of other sectors outside apps and entertainment in Nigeria; 48% of the people surveyed indicated that they use mLearning apps.

Source: Mobile Ecosystem 2016

0%

10%

20%

30%

40%

50%

mLearning ReadingApps

BankingApps

Healthcare

Taxiapps

Fooddelivery

(Sector)

(Use

Per

cent

age)

0% 10% 20% 30% 40% 50% 60% 70%

Listen tomusic

Computers Smartphones

Look up mapsand directions

Look for productinformation

Purchaseproducts/services

Watch onlinevideos

Play games

Check email

Visitsocial networks

Usesearch engines

Source: Google Consumer Barometer

Social Media is the most poular activity performed by Nigerians weekly on their mobile phones.

What online activitiesdo Nigerians do on their smartphones& computer at least weekly?

NIGERIAN

MOBILE LIFESTYLE

MOBILE COMMERCE

63% of all M-Commerce orders in Nigeria come fromMobile

63%

Nigerian customers who use mobile phones to shop onlinebuy a wide range of products,the top 3 being:

Mobilephone

Beauty andperfumes

Women’sClothings

Average price of smartphones have dropped significantly between 2014 and 2016, and sale of smartphones have gone up.

2014 2016

216$

165$99$117$

Average price ofsmartphones

Booming smartphonesales

(2014-2016)

+394%

37%

2014 2016

Source: Jumia Mobile Trends 2017

39%

61%WOMEN

MEN

More men shop online than women in Nigeria.

0 5 10 15 20 25 30

Ebooks

Videos

Fashionitems

Electronics

HomeAppliances

(5.3%)

(7.9%)

(26.3%)

(14%)

(14%)

MobileApps

Music

Games

(22.8%)

(15.8%)

(13.2%)

Yes

No

33.1%

66.9%

66.9% of Nigerians havebought an item with

their mobile phone

Reasons why Nigerians don’tshop with their phones;

a major reason beingfear of buying fake items

38.7%

44.1%

7.5% Delivery delays

Slow internet

I am afraid of buyingfake items

Delivery changes

I haven’t bought anythingwith my phone

Mobile purchase interest of Nigerians

Fashion items and mobile apps top the list of things people buywith their mobile phones

Source: Twinpine Customer Survey, 2017

Source: Twinpine Customer Survey, 2017

0 5 10 15 20 25 30

Travel

Music

i have notpaid

(3.2%)

(14.7%)

(50.5%)

Games

Business

Enter-tainment

(27.4%)

(7.4%)

(10.5%)

35 40 45

Games top the list in type of app paid for

Yes

No

58.5% of Nigerians havepaid for a mobile app

before.

Yes

No

57.4%

42.6%

Nigeriains are not tookeen on in-app purchases,only 42.6% have made an

in-app purchase.

58.5%

41.5%

Source: Twinpine Customer Survey, 2017

0 5 10 15 20 25 30

Toomany ads

Privacy

Too manynotifications

Not theexpected

value

(15.9%)

(11.1%)

(17.5%)

(10.6%)

Largesize

Too slow

Toocomplex

(28%)

(9%)

(7.9%)Main reasons why Nigerians uninstallapps

Large size and too many notifications top the chart

Source: Twinpine Customer Survey, 2017

YES

NO

71.5% of Nigerians use a mobile banking app

71.5%

28.5%

Source: Twinpine Customer Survey, 2017

0 10 20 30 40 50 60 70

Option savemoney

Transfermoney

Check balance

Pay bills

Airtimepurchase

I don’t usemobile apps

(12.7%)

(63.6%)

(42.7%)

(36.4%)

(47.3%)

(17.3%)

Benefits of mobile banking

MOBILEMONEY

Source: Mobile money report, MEF 2017

Payments made directly to mobile phone bill

14%

9% 9% 9%12% 11%

15%12%

16%

21%

35%

29% 30% 31%

37%

30%

39%37%

39%42%

Global UK USA Brazil France Germany China India South Africa Nigeria

Direct Carrier Billing by Country

2014 2016

Nigeria tops the chart with carrier billing(paying for items directly from the phone bill)at 42%.

9% of Nigerians have made an in-store mobile payment; increasing from its previous value of 6% in 2014(Mobile Money Report, MEF 2017)

Average monthly transactions in mobile grewfrom a transaction value of 5millionUSD in

2011 to 142.8millionUSD in 2016(KPMG Fintech in Nigeria Report, 2016)

Number of transactions performed using theUSSD service has more than doubled the

number of transactions on mobile banking platforms for banks offering USSD.

(Mobile Money Report, MEF 2017)

9%

6%

20142016

$142.8million

$5million

2016 2011

Transactions onmobile banking

platforms

Transactions using USSD

x2

MOBILE

26%66%

67%

41%

34%

MUSIC

COMEDY

TV SHOWSMOVIES

SPORT

VIDEO 27%

25%12%

12%

23%

Watched viaComputer

Watched viaSmartphone

29%

22%

Source: Google Consumer Barometer Survey

29% of Nigerians prefer to watch short online videos via their

smartphone

Many Nigerians prefer to watch short online videos, especially when via smartphones.

Frequency at which online videosare watched

Many Nigerians watch online videos via theirsmartphones at least weekly.

Source: The Connected Consumer, Google

Daily

Weekly

Monthly

Less than Monthly

Never

Nigerians watch a range of online videos via theirsmartphones.

Source: Google Consumer Barometer Survey

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