Cafe One by Sterling, a Nigerian co-working space provider with 16 outlets nationwide, increased prices in December 2024, citing the country’s challenging macroeconomic environment. This is troubling news for Nigerian remote workers since 29% of them and many startups rely on co-working spaces.
Effective January 1, 2025, daily rates for non-cardholders have risen 37% to ₦7,930 ($7.14) from an estimated ₦5,780 ($5.77). Card members, who previously paid ₦3,870 ($4.56), now face a ₦5,870 ($5.83) charge.
The increases came as a rude shock to some Yaba customers who attempted to use the space in 2025, one person familiar with the matter told Condia. “This is the first increase I have observed since I began using the Yaba workspace in 2023,” the person said.
Kelechi Nwaozuzu, General Manager of Cafe One, confirmed the price adjustments, stating that customers were notified via social media and newsletters in December. She emphasised that the company had absorbed significant cost increases throughout 2024, including a 400% rise in some locations, before passing the burden onto consumers. “Cafe One centres are fully serviced – meaning there is always power,” Nwaozuzu explained. “Rent, service charge, utility costs, diesel costs – everything went up. But we cannot continue doing it (subsidising costs).”
The move reflects the broader economic pressures facing businesses in Nigeria. According to the National Bureau of Statistics, the country’s inflation rate reached 34.80% in December 2024, driven by rising food, housing, electricity, and fuel costs.
The government’s recent decision to increase electricity tariffs and move towards a cost-reflective pricing model is expected to impact businesses reliant on power further. Many companies in Nigeria have already resorted to generating their electricity due to unreliable grid supply.
Light at the end of the tunnel
To mitigate the impact of the price increase, Cafe One has expanded its membership card program, offering discounted co-working rates and cashback on cafe purchases to all cardholders, not just Sterling Bank customers as before. Nwaozuzu noted that location-specific benefits, such as partnerships with companies like I-Fitness, are also available, and more discounts will be announced.
Despite the price adjustments, Cafe One continues to expand, recently opening a new outlet in Uyo, Akwa Ibom, bringing its total presence to 16 locations across eight states.
