Nigeria’s ISP Market Shrinks as Economic Crunch Drives Consumers to Mobile Internet
New data from the Nigerian Communications Commission (NCC) reveals that the number of active internet users relying on Internet Service Providers (ISPs) in Nigeria has plummeted to 289,369 in Q1 2025, a significant drop from 307,946 recorded in Q3 2024. This decline highlights how Nigeria’s worsening economic conditions and the increasing cost of broadband subscriptions are pushing more consumers toward cheaper alternatives. The impact has been particularly felt by major ISPs like Starlink, Spectranet, and FibreOne, all of whom reported notable customer losses.
Starlink, which had risen rapidly to become Nigeria’s second-largest ISP in 2024, posted its first-ever decline in users, shedding over 6,000 subscribers in six months. Spectranet also lost over 2,100 users, while FibreOne experienced the steepest decline, losing more than 14,000 customers during the same period. Analysts attribute this trend to rising inflation, power supply issues, and increased data tariffs, which are making it difficult for households and small businesses to maintain ISP subscriptions.
Industry experts, such as IT analyst Jide Awe, argue that the economic pressure is forcing Nigerians to re-evaluate their spending, prioritising essential needs over internet services that are now seen as a luxury. Starlink’s monthly cost rose from ₦38,000 to ₦57,000 in April, following a broader 50% hike in voice and data tariffs approved by the NCC in February 2025. These increases have driven consumers toward mobile internet options offered by MTN, Airtel, Globacom, and 9mobile, whose combined internet subscriptions remained stable at 141.9 million users as of April 2025.
The NCC report also revealed that of the 234 licensed ISPs in Nigeria, only 127 had active customers by Q1 2025, underscoring the need for a strategic overhaul in the ISP sector. Awe believes that simply selling bandwidth is no longer sufficient; ISPs must introduce flexible pricing models, affordable data plans, and value-added services targeting key sectors like education and healthcare. He also emphasized the importance of partnerships with startups and the use of renewable energy to enhance service delivery amid persistent power challenges.
Martins Akingba, COO of eStream Networks, pointed out that while fibre broadband can lower internet costs, its deployment remains limited to major cities like Lagos and Abuja. The lack of national infrastructure, poor electricity supply, and the absence of a central operator have hindered broader access. Private firms that have laid fibre often restrict usage or charge high rates, making it inaccessible to most Nigerians. Both Awe and Akingba agree that without innovation, investment, and customer-centric strategies, ISPs risk further decline as the market increasingly favours mobile internet providers.
Source: Leadership