Nigerians would need to pay more for Netflix despite diminishing purchasing power

The Basic is set to go for ₦4,000, up from ₦3,500, and the Mobile plan is now ₦2,500, up from ₦2,200, as seen in the Punch.

This new adjustment comes after previous increases in July 2024, further pinching customers in a country dealing with economic contraction and rising inflation.

In July 2024, the Premium plan increased by 40% to ₦7,000 ($4.40), the Standard plan by 37.5% to ₦5,500 ($3.46), the Basic plan by 21% to ₦3,500 ($2.20), and the Mobile plan from ₦1,600 ($1.01) to ₦2,200 ($1.38).

Earlier in April of the same year, the streaming service announced a price increase for its Premium Plan, raising it from N4,400 to N5,000.

At the same time, the Standard Plan increased from N3,600 to N4,000, while the Basic Plan stayed at N2,900.


Nigeria's economy vs Netflix

The Nigerian economy has suffered significantly in recent years, with the country's currency, the naira, depreciating and consumer purchasing power plummeting.

With the country’s inflation continuing to increase, the cost of basic goods and services has risen, making discretionary spending, such as video streaming, more difficult to justify for many Nigerians.

Streaming subscriptions are more expensive in industrialized countries such as the United States and the United Kingdom, but customers often earn much more, making such services reasonably affordable.

For example, although Americans pay $15.49 (approximately ₦24,000 at current exchange rates) for Netflix's Standard plan, the average U.S. worker makes more than $60,000 per year.

Nigeria's minimum monthly wage is currently ₦70,000, with many earning significantly less in the informal economy.

This is more complex when you consider that Nigeria’s current minimum wage of ₦70,000 is merely $43, compared to its minimum wage of ₦30,000 as of 2022, which was $70 when exchanged at the average rate of ₦423.7 at the end of the year.

This dip highlights Nigeria’s declining purchasing power in the face of one of its worst economic periods.

This disparity in purchasing power parity (PPP) also demonstrates the increasing difficulties of developing global subscription models in poor nations.

As streaming platforms pursue profitability, they risk losing customers in price-sensitive areas such as Nigeria.

Unless updated price structures or regional considerations are applied, subscription-based services may see decreased popularity in places where economic hardship makes digital entertainment increasingly costly.

However, the increase in internet and mobile penetration currently sweeping the nation could work against the above argument.

Additionally, Africa as whole led by countries like Nigeria and South Africa has been a market of interest for the streaming giants.

In 2023, reports indicated that Netflix planned to expand its operations on the continent, following the success of its local content production ventures in the region.

From 2016 to 2023 Netflix had invested the equivalent of €160 million in film content production in Africa, creating over 12,000 jobs in Nigeria, Kenya, and South Africa.

However, as of the end of 2024, Netflix reportedly pulled out of the Nigerian market.

In a statement to TechCabal, Netflix denied the reports of its exit.

According to TechCabal, a Netflix spokesperson reaffirmed the company’s commitment to Nigeria, saying, “We are not exiting Nigeria. We will continue to invest in Nigerian stories to delight our audience.”

Over USD 23 million has been invested in Nigeria by the streaming service since 2016 in over 250 local licensed titles, co-produced and commissioned film content.

Netflix' investments has contributed $39 million towards GDP, $34 million towards household income, and $2.6 million towards tax revenue.

By Chinedu Okafor, Business Insider Africa

Related story: Netflix cuts original Nigeria productions

Nigeria launches AI Scaling Hub with Gates Foundation

In partnership with the Gates Foundation, Nigeria has launched the Nigeria Artificial Intelligence Scaling Hub, backed by a funding commitment of up to $7.5 million over three years.

Announced during a signing ceremony in Abuja, the initiative will focus on responsibly scaling AI solutions across healthcare, agriculture, and education.

The AI Scaling Hub aims to unite government agencies, tech firms, academia, and development partners to support the nationwide deployment of proven AI innovations.

Rather than developing isolated pilot projects, the hub intends to build a collaborative system that encourages mature AI tools to be applied widely.

The Ministry of Communications, Innovation and Digital Economy stated that the move aligns with Nigeria’s draft National AI Strategy and broader technology agenda.

Minister Bosun Tijani said the hub would help turn local AI concepts into real-world results by offering innovators mentorship, resources, and support.

The Gates Foundation echoed the sentiment, with Nigeria Country Director Uche Amaonwu stressing the importance of ensuring AI benefits reach underserved communities.

The project also involves Lagos Business School and is expected to bolster Nigeria’s leadership in ethical AI adoption across Africa.

DigWatch

Video - Nigeria steps up malaria battle with local solutions after U.S. aid cuts

Nigeria is under pressure to enhance its malaria response after reductions in U.S. aid. The country records approximately 55 million malaria cases annually, resulting in around 90,000 deaths. Officials have pledged $200 million and are promoting homegrown health solutions.

CGTN

Military air strike kills at least 20 people in northwest Nigeria

A military air strike in northwest Nigeria has killed at least 20 people, according to the military and local residents, prompting calls from human rights groups for an investigation into the attack.

The strike occurred over the weekend in Zamfara state, one of the regions worst affected by violence from armed groups, commonly referred to as “bandits”.

Nigerian Air Commodore Ehimen Ejodame said the strike followed intelligence that “a significant number of terrorists were massing and preparing to strike unsuspecting settlements”.

“Further intelligence confirmed that the bandits had killed some farmers and abducted a number of civilians, including women and children,” Ejodame said in a statement, adding that two local vigilantes were killed and two others injured in the crossfire.

However, according to residents cited by the AFP news agency, a group of local vigilantes pursuing a gang was mistakenly bombed by a Nigerian military jet.

The air force had been called in by villagers who had suffered an attack earlier in the weekend. Locals said an unknown number of people were also wounded in the strike.

“We were hit by double tragedy on Saturday,” said Buhari Dangulbi, a resident of the affected area. “Dozens of our people and several cows were taken by bandits, and those who trailed the bandits to rescue them were attacked by a fighter jet. It killed 20 of them.”

Residents told AFP that the bandits had earlier attacked the villages of Mani and Wabi in Maru district, stealing cattle and abducting several people. In response, vigilantes launched a pursuit to recover the captives and stolen livestock.

“The military aircraft arrived and started firing, killing at least 20 of our people,” Abdullahi Ali, a Mani resident and member of a local hunters’ militia, told the Reuters news agency.

Another resident, Ishiye Kabiru, said: “Our vigilantes from Maraya and nearby communities gathered and went after the bandits. Unfortunately, a military jet struck them.”

Alka Tanimu, also from the area, added: “We will still have to pay to get those kidnapped back, while the cows are gone for good.”

Amnesty International condemned the strike and urged a full investigation.

“Attacks by bandits clearly warrant a response from the state, but to launch reckless air strikes into villages – again and again – is absolutely unlawful,” the rights group said.

Nigeria’s military has previously acknowledged mistakenly hitting civilians during air operations targeting armed gangs.

In January, at least 16 vigilantes were killed in a similar strike in Zamfara’s Zurmi district.

In December 2022, more than 100 civilians were killed in Mutunji village while pursuing bandits. A year later, an attack on a religious gathering in Kaduna state killed at least 85 people.

Al Jazeera

One death every seven minutes: Nigeria is world's worst country to give birth

At the age of 24, Nafisa Salahu was in danger of becoming just another statistic in Nigeria, where a woman dies giving birth every seven minutes, on average.

Going into labour during a doctors' strike meant that, despite being in hospital, there was no expert help on hand once a complication emerged.

Her baby's head was stuck and she was just told to lie still during labour, which lasted three days.

Eventually a Caesarean was recommended and a doctor was located who was prepared to carry it out.

"I thanked God because I was almost dying. I had no strength left, I had nothing left," Ms Salahu tells the BBC from Kano state in the north of the country.

She survived, but tragically her baby died.

Eleven years on, she has gone back to hospital to give birth several times and takes a fatalistic attitude. "I knew [each time] I was between life and death but I was no longer afraid," she says.

Ms Salahu's experience is not unusual.

Nigeria is the world's most dangerous nation in which to give birth.

According to the most recent UN estimates for the country, compiled from 2023 figures, one in 100 women die in labour or in the following days.

That puts it at the top of a league table no country wants to head.

In 2023, Nigeria accounted for well over a quarter - 29% - of all maternal deaths worldwide.

That is an estimated total of 75,000 women dying in childbirth in a year, which works out at one death every seven minutes.

The frustration for many is that a large number of the deaths – from things like bleeding after childbirth (known as postpartum haemorrhage) – are preventable.

Chinenye Nweze was 36 when she bled to death at a hospital in the south-eastern town of Onitsha five years ago.

"The doctors needed blood," her brother Henry Edeh remembers. "The blood they had wasn't enough and they were running around. Losing my sister and my friend is nothing I would wish on an enemy. The pain is unbearable."

Among the other common causes of maternal deaths are obstructed labour, high blood pressure and unsafe abortions.

Nigeria's "very high" maternal mortality rate is the result of a combination of a number of factors, according to Martin Dohlsten from the Nigeria office of the UN's children's organisation, Unicef.

Among them, he says, are poor health infrastructure, a shortage of medics, costly treatments that many cannot afford, cultural practices that can lead to some distrusting medical professionals and insecurity.

"No woman deserves to die while birthing a child," says Mabel Onwuemena, national co-ordinator of the Women of Purpose Development Foundation.

She explains that some women, especially in rural areas, believe "that visiting hospitals is a total waste of time" and choose "traditional remedies instead of seeking medical help, which can delay life-saving care".

For some, reaching a hospital or clinic is near-impossible because of a lack of transport, but Ms Onwuemena believes that even if they managed to, their problems would not be over.

"Many healthcare facilities lack the basic equipment, supplies and trained personnel, making it difficult to provide a quality service."

Nigeria's federal government currently spends only 5% of its budget on health – well short of the 15% target that the country committed to in a 2001 African Union treaty.

In 2021, there were 121,000 midwives for a population of 218 million and less than half of all births were overseen by a skilled health worker. It is estimated that the country needs 700,000 more nurses and midwives to meet the World Health Organization's recommended ratio.

There is also a severe lack of doctors.

The shortage of staff and facilities puts some off seeking professional help.

"I honestly don't trust hospitals much, there are too many stories of negligence, especially in public hospitals," Jamila Ishaq says.

"For example, when I was having my fourth child, there were complications during labour. The local birth attendant advised us to go to the hospital, but when we got there, no healthcare worker was available to help me. I had to go back home, and that's where I eventually gave birth," she explains.

The 28-year-old from Kano state is now expecting her fifth baby.

She adds that she would consider going to a private clinic but the cost is prohibitive.

Chinwendu Obiejesi, who is expecting her third child, is able to pay for private health care at a hospital and "wouldn't consider giving birth anywhere else".

She says that among her friends and family, maternal deaths are now rare, whereas she used to hear about them quite frequently.

She lives in a wealthy suburb of Abuja, where hospitals are easier to reach, roads are better, and emergency services work. More women in the city are also educated and know the importance of going to the hospital.

"I always attend antenatal care… It allows me to speak with doctors regularly, do important tests and scans, and keep track of both my health and the baby's," Ms Obiejesi tells the BBC.

"For instance, during my second pregnancy, they expected I might bleed heavily, so they prepared extra blood in case a transfusion was needed. Thankfully, I didn't need it, and everything went well."

However, a family friend of hers was not so lucky.

During her second labour, "the birth attendant couldn't deliver the baby and tried to force it out. The baby died. By the time she was rushed to the hospital, it was too late. She still had to undergo surgery to deliver the baby's body. It was heart-breaking."

Dr Nana Sandah-Abubakar, director of community health services at the country's National Primary Health Care Development Agency (NPHCDA), acknowledges that the situation is dire, but says a new plan is being put in place to address some of the issues.

Last November, the Nigerian government launched the pilot phase of the Maternal Mortality Reduction Innovation Initiative (Mamii). Eventually this will target 172 local government areas across 33 states, which account for more than half of all childbirth-related deaths in the country.

"We identify each pregnant woman, know where she lives, and support her through pregnancy, childbirth and beyond," Dr Sandah-Abubakar says.

So far, 400,000 pregnant women in six states have been found in a house-to-house survey, "with details of whether they are attending ante-natal [classes] or not".

"The plan is to start to link them to services to ensure that they get the care [they need] and that they deliver safely."

Mamii will aim to work with local transport networks to try and get more women to clinics and also encourage people to sign up to low-cost public health insurance.

It is too early to say whether this has had any impact, but the authorities hope that the country can eventually follow the trend of the rest of the world.

Globally, maternal deaths have dropped by 40% since 2000, thanks to expanded access to healthcare. The numbers have also improved in Nigeria over the same period - but only by 13%.

Despite Mamii, and other programmes, being welcome initiatives, some experts believe more must be done – including greater investment.

"Their success depends on sustained funding, effective implementation and continuous monitoring to ensure that the intended outcomes are achieved," says Unicef's Mr Dohlsten.

In the meantime, the loss of each mother in Nigeria - 200 every day - will continue to be a tragedy for the families involved.

For Mr Edeh, the grief over the loss of his sister is still raw.

"She stepped up to become our anchor and backbone because we lost our parents when we were growing up," he says.

"In my lone time, when she crosses my mind. I cry bitterly."

By Makuochi Okafor, BBC