In a move that has left many Nigerian subscribers fuming, Starlink, the satellite internet provider owned by Elon Musk, has announced a steep increase in its subscription prices. Beginning January 27, 2025, customers on the Residential Plan will pay a monthly fee of ₦75,000, nearly double the current rate of ₦38,000. The new pricing also extends to other plans, with Regional Roaming now set at ₦167,000 and Global Roaming soaring to an eye-watering ₦717,000.
This announcement comes just months after Starlink’s previous attempt to raise its prices in October 2024 was blocked by the Nigerian Communications Commission (NCC). At the time, the NCC rejected the proposed hike, citing the company’s failure to obtain regulatory approval. The Commission warned Starlink that such actions violated Sections 108 and 111 of the Nigerian Communications Act, 2003, which mandates NCC’s approval for any tariff changes.
However, this time, it remains unclear whether Starlink has secured the necessary authorization. Dr. Reuben Mouka, the NCC’s Director of Public Affairs, disclosed to Nairametrics that he had not been briefed on the latest development. “I’m not aware of any approval granted to Starlink for this increment,” he stated.
Starlink Defends Its Decision
In a statement emailed to subscribers, Starlink justified the hike, saying it was necessary to improve service quality. “To continue enhancing the Starlink network and delivering reliable, high-quality service across Nigeria, we are adjusting our monthly subscription prices. These changes reflect our commitment to investing in the infrastructure needed to support and improve your experience with Starlink,” the email read.
The company also informed users that existing customers would see the price adjustment reflected in their February 2025 bills, while new users would have to pay the revised rates immediately. Starlink assured users that they could cancel their subscriptions if they were dissatisfied with the new pricing.
Economic Context and Public Backlash
The timing of the announcement has added fuel to public outrage, as Nigerians grapple with an already harsh economic climate marked by inflation and dwindling purchasing power. The ₦75,000 monthly fee is now higher than the country’s minimum wage of ₦30,000, making the service increasingly unaffordable for many.
“This is exploitation in plain sight,” lamented a Lagos-based subscriber who wished to remain anonymous. “How can they expect people to pay such exorbitant rates when the average Nigerian is struggling to make ends meet?”
Despite Starlink’s reputation for delivering high-speed internet in underserved areas, critics argue that the new pricing will alienate the very demographics that need the service the most. Many middle- and lower-income users, who had embraced Starlink as a reliable alternative to traditional Internet Service Providers (ISPs), may now be forced to explore cheaper options.
“Starlink is essentially pushing its Nigerian customers into the hands of its competitors,” said telecommunications analyst Ishola Aluko. “While the service quality is undeniable, affordability is key in a market like Nigeria.”
NCC’s Role Under Scrutiny
The NCC’s silence on whether it has approved the latest price hike has led to renewed criticism of its regulatory oversight. Following Starlink’s first attempt at a price increase in October, the Commission had reiterated its authority to regulate tariffs and warned that any violations would attract financial penalties.
Section 108 of the Nigerian Communications Act explicitly states that “Holders of individual licences shall not impose any tariff or charges for the provision of any service until the Commission has approved such tariff rates and charges.” Furthermore, Section 111 grants the NCC the power to impose financial penalties on violators.
Industry Implications
The controversy surrounding Starlink’s price adjustment also brings to light broader issues within Nigeria’s telecommunications sector. Local operators have long lobbied for tariff increases to offset rising operational costs, but the NCC has been reluctant to grant such requests.
Analysts believe that Starlink’s move could set a precedent, emboldening other ISPs to push for similar increments. “This is a slippery slope,” Aluko warned. “If Starlink gets away with this, we may soon see other operators following suit, leading to a general hike in data and voice tariffs across the board.”
