Nigeria has begun proceedings to sanction Starlink, the satellite internet service owned by billionaire Elon Musk, following an unauthorized increase in its subscription fees.
The company recently raised its monthly subscription from 38,000 naira to 75,000 naira, citing “excessive inflation,” while the cost of equipment surged by 34% to 590,000 naira. Under Nigerian law, telecommunications providers are required to obtain approval from regulatory authorities before making any tariff adjustments.
The Nigerian Communications Commission (NCC) announced on Tuesday that it initiated pre-enforcement actions against Starlink on October 3, due to the company’s decision to hike prices without the necessary authorization. Although Starlink submitted a request for the price increase, the NCC highlighted that the company prematurely announced the changes before receiving a formal response.
In response to inquiries, Starlink referred to an October 1 statement by Musk on X, indicating that “Starlink prices must roughly match the rate of inflation in any given country.” Nigeria’s inflation rate reached 32.2% in August, the highest in nearly three decades.
The NCC has not approved any price increases by mobile operators for several years and previously mandated MTN Nigeria Communications and Airtel Africa to reverse a 10% price hike in 2022. The ongoing situation raises concerns about regulatory compliance and the impact of inflation on telecommunications in Nigeria.
