By Atoyebi Nike
Nigeria’s internet service providers (ISPs) are facing steep subscriber losses as rising costs, economic pressure, and competition from mobile networks drive users to more affordable options.
According to the Nigerian Communications Commission (NCC), active subscriptions across 127 ISPs dropped to 289,369 in Q1 2025, down from 307,946 in Q3 2024. This marks a significant shift in the country’s broadband landscape.
Starlink, which had surged to become Nigeria’s second-largest ISP in 2024, experienced its first major setback losing over 6,000 customers, with active users falling from 65,564 to 59,509. Market leader Spectranet also saw a dip, shedding 2,189 subscribers in the same period.
The biggest blow hit FibreOne, which lost over 14,000 customers, plunging from 33,010 to 19,000 subscribers the sharpest decline among the top three.
What’s Driving the Exodus?
Analysts attribute the drop to rising internet and power costs, hardware expenses, and economic strain.
“Families and small businesses are cutting down on non-essentials. ISPs are suffering as subscriptions take a back seat,” said Jide Awe, tech policy expert and founder of Jidaw.com. “Starlink, in particular, is costly both in terms of devices and monthly plans.”
ISPs, which traditionally serve business customers, now face stiff competition from mobile network operators (MNOs) offering faster and cheaper Fiber to the Home (FTTH) services. MNOs like MTN, Airtel, and Globacom are expanding aggressively into territory once dominated by ISPs.
“Smaller ISPs are being edged out. The competitive field is no longer level,” said Tony Emoekpere, President of ATCON (Association of Telecommunications Companies of Nigeria).
The February 2025 50% tariff hike, approved by the NCC, further pushed users away. Starlink, for instance, increased its monthly plan from ₦38,000 to ₦57,000 in April.
Mobile Networks Stay Strong
While ISPs struggle, MNOs continue to dominate internet access in Nigeria. As of March 2025, MTN, Airtel, Globacom, and 9mobile collectively held over 142 million active internet subscribers.
Despite the general cost hike, mobile internet subscriptions dipped only slightly by 0.07% in April, according to the NCC.
Rethinking the ISP Model
Experts say ISPs need a new playbook.
“To stay relevant, ISPs must move beyond just selling bandwidth,” Awe advised. “They need creative, affordable data plans, industry-specific services, and partnerships with innovative startups.”
He also called for ISPs to invest in local energy solutions, especially solar, to reduce operating costs and improve service reliability.
“Targeting SMEs, education, and healthcare with tailored solutions and improving customer support can help ISPs weather the storm,” he added.
Out of Nigeria’s 234 licensed ISPs, only 127 had active users by Q1 2025, reinforcing concerns about long-term sustainability in a market increasingly dominated by mobile giants.
With internet access now a vital utility, the challenge for ISPs is not just survival but reinvention.
