Starlink’s Price Hike Shows How Inflation is Rapidly Hurting Nigeria and Nigerians

Starlink, the satellite Internet service from Elon Musk’s SpaceX, has doubled its prices in Nigeria, blaming “excessive levels of inflation.” The company sent an email to its customers, announcing that its basic residential plan, which comes with a 1TB data limit, will now cost ₦75,000 ($48) per month, up from ₦38,000 ($24). Roaming customers have been hit even harder, with the regional roaming service — allowing users to access Starlink beyond their homes or workplaces — jumping from ₦49,000 to ₦167,000. The international roaming price has risen to ₦717,000 per month.

While Nigerians face these price hikes, Starlink’s operations in Kenya seem much more customer-friendly. In Kenya, customers enjoy lower-priced options, like a Mini plan for $30.87 (KSh 4,000) and a standard plan for $50.43 (KSh 6,500). Starlink has even introduced a $15 monthly rental option in Kenya to make their service more affordable. Nigerian customers, however, are left without these options, making high-speed Internet increasingly out of reach.

Inflation Struggles in Nigeria

Inflation in Nigeria is a growing problem. As prices keep going up, everyday life becomes harder for Nigerians. The inflation rate reached over 24% in July 2024, causing a sharp rise in the cost of living. People are paying more for food, transportation, housing, and now even Internet services like Starlink.

One of the main reasons for this inflation is the fall in the value of the naira, Nigeria’s currency. With the naira losing its value against the dollar, companies like Starlink, which rely on international supplies, are forced to increase their prices. Earlier this year, the removal of the fuel subsidy made things worse. Fuel prices skyrocketed, driving up the cost of almost everything else, from food to transport.

Internet Is Becoming a Luxury

Starlink’s price hike highlights a growing issue in Nigeria: Internet access is becoming a luxury that fewer people can afford. The new monthly cost of ₦75,000 is far beyond what many Nigerians can afford, especially considering the rising prices of other essentials like food and fuel.

In contrast, Kenya is offering its citizens more affordable Internet options. Starlink and local companies like Safaricom are working to keep Internet prices low, even improving service without increasing costs. Safaricom recently increased its fiber Internet speed to 500 Mbps on some plans, while keeping prices steady. These moves make Internet access more accessible for everyday Kenyans, unlike in Nigeria, where Internet services are becoming more expensive by the day.

Price Increase Across Board in Nigeria

Unfortunately, the rising cost of Internet services is just one of many areas where inflation is affecting Nigerians. Prices of basic goods like bread have increased by over 60% this year due to the high cost of imported wheat and the fuel used to transport these goods. Housing costs in cities like Lagos and Abuja are also going up, making it harder for families to afford rent.

Even education has become more expensive, with many schools increasing their fees, putting extra pressure on families already struggling to get by.

What Needs to Be Done?

Starlink’s price hikes are part of a bigger problem in Nigeria. Inflation is making life increasingly difficult, and something needs to change. The government and private companies must work together to find solutions that help ease the financial burden on Nigerians.

For the economy, stabilizing the naira is crucial. This could be done by reducing Nigeria’s dependence on imported goods and focusing more on producing things locally. If local production is encouraged, the country could reduce the impact of global price shocks.

In the tech space, companies like Starlink could introduce more affordable options for Nigerian customers, similar to what they’ve done in Kenya. By offering lower-cost plans or allowing payments in local currency, Starlink could make Internet access more accessible.

Starlink’s steep price increases reflect how inflation is affecting nearly every aspect of life in Nigeria. As prices keep rising, it’s becoming harder for everyday Nigerians to keep up with the cost of living. If nothing is done to address these issues, many people could be left behind in an increasingly digital world, unable to afford basic Internet access and other essentials.