Starlink Inc., the satellite internet service owned by billionaire Elon Musk, is facing sanctions in Nigeria after raising its prices without regulatory approval.
The Nigerian Communications Commission (NCC) is taking action against SpaceX’s Starlink unit after it nearly doubled its monthly subscription rate from 38,000 naira to 75,000 naira (GH¢ 373.55 to GH¢ 737.27). The company justified the increase, citing “excessive inflation.” In addition, Starlink increased the cost of its equipment by 34%, bringing the new price to 590,000 naira (GH¢5,799.88).
Nigerian law requires telecommunication license holders to get regulatory approval before making any changes to tariffs or prices. On Tuesday, the NCC issued a statement saying that it had begun “pre-enforcement action” on October 3 following Starlink’s unauthorized price hike.
Although Starlink submitted a request for approval to the NCC, it went ahead with the price increase before the regulator could respond. The NCC emphasized that Starlink’s decision to raise prices without waiting for approval violated the country’s regulations.
In response to the controversy, Starlink referred to an October 1 statement made by Musk on X (formerly Twitter), where he said, “Starlink prices must roughly match the rate of inflation in any given country.” Nigeria’s inflation rate surged to a near three-decade high of 32.2% in August.
The NCC has a history of blocking price hikes in the telecom industry. In 2022, it ordered MTN Nigeria Communications Plc and Airtel Africa Plc to reverse a 10% increase in their prices, continuing its policy of not allowing tariff increases for mobile operators over the past several years.
