MARKET NEWS

A weak naira is steadily making Starlink out of reach for many Nigerians. Since its January launch in Africa’s most populous country, the price of the kit has jumped by 115.25 percent to N590,000.

Starlink was launched in January 2023 at N274,098 for hardware and a monthly subscription fee of N19,260. Following a steep naira devaluation, the country repriced it to N800,000, then N440,000 in 2024, with a monthly subscription fee of N38,000.

However, further devaluation has led to hikes in hardware and monthly subscription fees to N590,000 and N75,000, respectively. According to data from the FMDQ, the naira’s value dropped from N747.76/$1 on September 22, 2023, to N1,541.52/$1 as of September 20, 2024, representing a 51.49 percent depreciation.

In an email to customers, the satellite internet provider said, “Due to excessive levels of inflation, the Starlink monthly service price will increase from current rates to the respective rates below: Standard (Residential) N75,000; mobile – regional (roam unlimited): N167,000; mobile – global (global roam): N717,000).”

The company noted that new prices will kick in for current customers by October 31, 2024, but are immediate for new customers. Since its January launch, the company has grown to become the country’s third largest internet service provider (ISP), with 23,897 active subscribers in 12 months.

While Nigeria was its first operational country in Africa, the company has launched in 15 other countries on the continent, offering incentives in some to capture customers. In Kenya, for instance, it offers a rental option to customers who cannot pay the full amount.