Elon Musk’s internet service provider, Starlink, has significantly raised the cost of its hardware in Nigeria by 112%, with the price of the Starlink internet router jumping from N378,000 to N800,000. The monthly subscription fee, however, remains the same at N38,000.
Starlink has yet to comment on the price increase. Analysis by Nairametrics suggests the adjustment could be a response to the Naira’s depreciating value against the dollar.
Since the start of the year, the Nigerian currency has seen a continuous downturn, dropping from N907 to the dollar in December 2023 to N1,602 to the dollar by March 7, 2024, in the official exchange market.
Starlink has quickly become a popular choice in Nigeria, despite its prices being higher than those of local ISPs. Launched in the country in January 2023, Starlink has attracted significant interest from Nigerians seeking alternatives to their current internet service providers. Its widespread satellite coverage is particularly appealing to those in areas with poor internet connectivity.
Data from the Nigerian Communications Commission (NCC) highlights Starlink’s rapid ascent among the nation’s ISPs. By Q3 2023, Starlink Nigeria boasted a customer base of 11,207, outpacing many local ISPs that have been in the market for years and currently have fewer customers. This growth underscores the strong demand for reliable internet service across Nigeria.
Key Insights on Starlink in Nigeria:
Starlink made its presence known in Nigeria in January last year, but eager Nigerians had already started pre-ordering its equipment as early as 2022. Initially, the company set its prices in dollars—$600 for the hardware and $43 monthly for the subscription. Upon its official launch, it adapted its pricing to the local currency, setting the hardware and subscription costs at N268,584 and N19,260, respectively. This conversion was based on the official exchange rate at the time, which was about N450/$1.
Following the unification of exchange rates, the prices for both the hardware and subscriptions experienced an increase, rising to N378,000 and N38,000, as the Naira’s value against the dollar declined. In an aggressive move to capture a larger portion of the Nigerian ISP market, Starlink reduced its hardware prices by 21% between October and November of the previous year, bringing the price down to N299,500. Nevertheless, this discounted price was short-lived, as it returned to the regular price of N378,000 on November 16.
