Nigerian regulators are cracking down on SpaceX-owned satellite provider Starlink, threatening sanctions over an unauthorized price hike that has sparked controversy in the African tech community.

According to sources, Starlink wrote to the Nigerian Communications Commission (NCC) seeking approval for a 100% subscription fee increase, citing rising inflation. However, the company did not wait for a response before implementing the price hike, prompting the NCC to demand a reversal.

The NCC has since asked Starlink to respond to the allegations, with possible penalties including fines, cautionary notes, or no action if no wrongdoing is found. A decision is expected within two weeks.

The incident has raised eyebrows among telco executives, who claim that regulators have been soft on Starlink, allowing it to operate without a physical presence in the country. However, an NCC employee disputed this, stating that Starlink has built three landing stations out of the five mandated by the regulator.

The development comes as Starlink, which launched in Nigeria in 2023, has gained 23,897 active subscribers. The company's expansion into Africa has been closely watched, with many seeing it as a key player in the continent's growing satellite tech market.

The regulatory scrutiny serves as a warning to startups operating in Africa, highlighting the importance of complying with local regulations and avoiding unilateral decisions that may attract unwanted attention from authorities.