Planned Obsolescence and Household Financial Behavior in Oyo State, Nigeria

Abstract

This study examines the impact of planned obsolescence on household financial decisions in Oyo State, Nigeria; specifically, its effect on consumption, savings, and investment decisions. The research questions observe the influences of premature replacement of products on financial behavior, the exposure levels of households to obsolescence in electronics, fashion, and automotive products, and the reasons and frequency of product replacement. The quantitative method was utilized, in which a survey (consisting of 156 questionnaires) was distributed through the Internet among the adult population of the urban Oyo State, Nigeria. The analysis of data was done by descriptive statistics and multiple regression in SPSS. It was found that Nigerian households often dispose of functional products, particularly fashion products, footwear, and smartphones, mainly because of new models (31.7%), and the slowdown of performance because of software (24.1%). The regressions indicate that pressure to upgrade (β = 0.300, p < 0.001) and increased monthly income (β = 0.476, p < 0.001) have a significant impact on the amount of income spent on replacements. Consciousness of planned obsolescence and education level, however, had no great impact. The study finds that planned obsolescence helps to generate repeated consumption, saving degradation, and investment perversion, particularly among urban households with middle income. Some of the recommendations are the enactment of right-to-repair policies, labeling the lifespan of products as mandatory, tax incentives for long-lasting items, a ban on software updates that lower the performance of devices, and public awareness to see forced obsolescence as an economic and environmental cost.