Elon Musk’s satellite internet provider, Starlink, has found itself in hot water with Nigeria’s telecom regulator, the Nigerian Communications Commission (NCC). The issue arose after Starlink implemented a 100% price increase for its services on October 1, 2024, citing rising inflation as the reason. This abrupt hike doubled the monthly subscription fee from ₦38,000 to ₦75,000, along with a 34% increase in hardware costs for new customers—from ₦440,000 to ₦590,000. However, the NCC contends that this price revision was introduced without regulatory approval, a direct violation of Nigeria’s telecom laws.
The NCC responded swiftly, instructing Starlink to reverse the new rates, which the company complied with just a few days later. The regulator stressed that the unauthorized increase contravened the Nigerian Communications Act, Sections 108 and 111, and the company’s licensing terms, emphasizing that regulatory actions could follow even if the price rollback was executed promptly. NCC officials suggested that sanctions could range from fines to cautionary notices, depending on Starlink’s defense during an upcoming hearing expected to conclude within two weeks.
Industry players, including representatives from the Association of Licensed Telecommunications Operators of Nigeria (ALTON), criticized the situation, accusing the NCC of being lenient with Starlink compared to local service providers. ALTON’s chairman, Gbenga Adebayo, expressed frustration over the regulator’s handling, noting that other operators have been denied price adjustments despite similar economic pressures.
Starlink’s presence in Nigeria since January 2023 has grown rapidly, boasting 23,897 active subscribers by the fourth quarter of 2024. As the third-largest internet service provider (ISP) in the country, the company’s aggressive growth has raised questions about whether it is receiving preferential regulatory treatment. NCC officials, however, dismissed these allegations, clarifying that Starlink has constructed three out of the five mandated landing stations, exceeding its infrastructure commitments compared to other African countries.
The situation underscores broader tensions in Nigeria’s telecom sector, where providers have long lobbied for price reviews to match inflation rates and operational costs, which they claim have not been adjusted in over a decade