Third-party retailers dominate Starlink sales in Nigeria amid direct sales freeze

Starting from October 2024, Nigerian customers have faced challenges in purchasing Starlink kits directly from the satellite internet provider due to a halt in direct sales. The company cited overcapacity as the reason for this pause. This situation coincides with Starlink’s rapid growth in Nigeria, which has led to regulatory hurdles and capacity limitations.

The surge in demand for Starlink services in late 2024 made it the second-largest internet service provider in Nigeria by subscriber count. However, since October 2024, new customers have been added to a waitlist as direct orders are not available. This restriction followed the Nigerian Communications Commission’s decision to block a proposed tariff increase, affecting new subscribers in major cities like Lagos, Abuja, Benin City, and Port Harcourt from placing direct orders on Starlink’s website.

Prospective customers attempting to purchase receive a message indicating that Starlink is currently at capacity in their area. They are encouraged to place a deposit to secure a spot on the waitlist and receive a notification when service becomes available. However, no estimated timeframe is provided for availability.

The halt in direct sales has led to the emergence of third-party resellers who continue to receive shipments. Some resellers have reported consistent stock availability and speculate that Starlink may be incentivizing customers to purchase through distributors in Nigeria for better margins.

To work around the restrictions, some resellers are reportedly using foreign addresses, including those in neighboring countries like Benin and Cameroon, to facilitate activations.

This workaround has resulted in price variations, with official Starlink kits priced at ₦590,000 ($375) but selling for up to ₦650,000 ($413) through resellers. Installation costs also differ, ranging from ₦30,000 ($19) to ₦50,000 ($32) based on location and service provider.

Customers who bought Starlink kits before the sales freeze have encountered issues with plan selection, with some being placed on the more expensive “Roam Unlimited” mobile plan.

Starlink’s challenges in Nigeria stem from capacity constraints, particularly in high-demand urban areas like Lagos and Abuja. Elon Musk acknowledged in November 2024 that new sign-ups were paused in major African cities due to overwhelming demand. Expanding coverage hinges on deploying more satellites or upgrading to high-capacity models like Starlink V2.0, both of which require significant investments.

While Starlink has been expanding globally, its satellite deployments have prioritized North America and Europe due to higher demand and more favorable regulatory environments. Africa’s lower satellite density has limited service availability on the continent.

Some third-party installers have found innovative ways to bypass activation restrictions to keep customers connected.

Since October 2024, Nigerian customers have encountered challenges in getting support from Starlink, experiencing delayed responses or no responses for issues like payment failures and account modifications. In contrast, similar requests from U.S.-based users have been handled promptly, according to some installers.

For now, Nigerian customers interested in joining Starlink’s network must navigate the reseller market or wait for direct sales to resume.