Nigeria’s Internet Service Providers (ISPs) are facing turbulent times as economic hardship and rising service costs force a growing number of users to abandon fixed broadband connections. According to new data from the Nigerian Communications Commission (NCC), the total number of active ISP customers dropped sharply to 289,369 in Q1 2025, down from 307,946 in Q3 2024—a loss of over 18,000 users.
This slump cuts across major players, including Starlink, Spectranet, and FibreOne, signaling a broader trend that threatens the sustainability of Nigeria’s ISP sector.
Starlink and Spectranet Feel the Heat
Starlink, which made headlines in 2024 for its rapid market entry and growth, has now recorded its first customer loss in Nigeria. Its subscriber base fell from 65,564 in Q3 2024 to 59,509 in Q1 2025, a loss of over 6,000 customers within six months.
Spectranet, a pioneer in the Nigerian ISP space and still the market leader by subscriber count, also saw its numbers dip. The company shed 2,189 customers, sliding from 105,441 to 103,252 during the same period.
FibreOne, ranked third in customer base, experienced the most significant drop—losing more than 14,000 customers, as its subscriber numbers plummeted from 33,010 to just 19,000.
Economic Pressure and Industry Shake-Up Behind the Slide
Experts point to several reasons for the downward trend, the most pressing being the economic squeeze on Nigerian households and small businesses.
Jide Awe, technology policy analyst and founder of Jidaw.com, highlighted that rising costs across the board—data, equipment, and electricity—are forcing many Nigerians to cut back on non-essential expenses.
“Maintaining subscriptions isn’t a priority anymore. Starlink, in particular, is expensive in terms of device and monthly fees,” Awe explained.
He added that many small businesses and households are shifting to mobile networks, which offer more affordable and flexible internet options compared to traditional ISPs.
Mobile Networks Gain Ground with Fibre-to-the-Home Push
The rise of mobile network operators (MNOs) in the ISP space has further intensified competition. MTN, Airtel, and other MNOs are now offering Fibre to the Home (FTTH) services—territory previously dominated by ISPs.
Tony Emoekpere, President of the Association of Telecommunications Companies of Nigeria (ATCON), described this development as unfair competition, arguing that MNOs have a pricing and infrastructure advantage.
Another factor hurting ISP growth is the February 2025 tariff hike, approved by the NCC, which saw voice and data prices increase by 50%. Starlink, for instance, raised its monthly subscription from ₦38,000 to ₦57,000, a 50% jump that took effect in April.
For small business owner Kelvin Ayodele in Lagos, the increase was the final straw. He ditched his Starlink subscription and switched to a mobile network’s broadband service, citing cost savings and comparable performance.
MNOs Continue to Dominate Nigeria’s Internet Market
The contrast between ISPs and MNOs couldn’t be starker. While ISP subscriptions have fallen, mobile internet users have held steady. As of April 2025, the four MNOs—MTN, Airtel, Globacom, and 9mobile—had a combined 142 million active internet subscriptions, representing the lion’s share of Nigeria’s connectivity market.
Despite the nationwide tariff hike, internet subscriptions via mobile declined by only 0.07% in April, showing resilience that ISPs currently lack.
What Next for ISPs? Experts Call for Innovation and Collaboration
To stay afloat, analysts say ISPs must rethink their business models and become more value-driven and innovative.
Jide Awe urged providers to diversify beyond bandwidth sales and tailor solutions for specific sectors like education, healthcare, real estate, and SMEs.
“There’s a need to collaborate with startups, develop bundled services, and invest in alternative power solutions like solar to boost reliability,” he advised.
Awe also encouraged ISPs to explore emerging technologies, improve customer support, and focus on localized digital transformation to better serve Nigeria’s changing market dynamics.
Final Word
With customer numbers falling and competition intensifying, Nigeria’s ISPs are at a critical crossroads. Without urgent strategic adjustments, including price innovation, sectoral alignment, and service reliability, more users may continue to pivot to mobile networks—leaving the ISP space increasingly marginalized in Nigeria’s fast-evolving digital economy.