Top Internet Service Providers (ISPs) in Nigeria, such as Starlink and Spectranet, have experienced notable declines in their subscriber base as consumers cut back on internet spending amid rising costs, according to the latest data from the Nigerian Communications Commission (NCC).
The NCC’s Q1 2025 report shows total active customers across 127 ISPs dropped to 289,369 from 307,946 recorded in Q3 2024.
Starlink, which surged last year to become Nigeria’s second-largest ISP, saw its customer numbers fall by over 6,000 from 65,564 in Q3 2024 to 59,509 in Q1 2025. Meanwhile, Spectranet, the oldest and largest ISP by customer count, lost 2,189 subscribers, declining from 105,441 to 103,252 over the same period.
The most significant drop was recorded by FibreOne, which lost more than 14,000 customers, falling from 33,010 to 19,000.
Reasons Behind the Decline
Industry experts attribute the drop to Nigeria’s challenging economic environment and rising costs of data, equipment, and power.
Jide Awe, Innovation and Technology Policy Advisor and Founder of Jidaw.com, explained that many households and small businesses are prioritizing essential expenses, cutting down on internet subscriptions that have become costly, especially for providers like Starlink, whose devices and subscriptions come at a premium.
Moreover, businesses historically major ISP customers are increasingly switching to mobile networks due to their affordability and flexibility. Tony Emoekpere, President of the Association of Telecommunications Companies of Nigeria (ATCON), also pointed out that mobile network operators’ recent expansion into Fiber to the Home (FTTH) services is squeezing smaller ISP operators. He cited tariff hikes, including a 50% increase approved by the NCC in February, as additional pressure on ISPs.
For instance, Starlink increased its monthly subscription from ₦38,000 to ₦57,000 starting in April, pushing some customers like Lagos-based small business owner Kelvin Ayodele to switch to cheaper mobile broadband alternatives.
ISPs vs Mobile Networks
While 234 companies are licensed as ISPs in Nigeria, only 127 reported active customers in Q1 2025. Combined, these ISPs serve just under 290,000 users vastly overshadowed by Nigeria’s four mobile network operators (MTN, Airtel, Globacom, and 9mobile), which collectively account for approximately 142 million active internet subscriptions.
Despite the tariff increases, mobile internet subscriptions have remained stable, with a marginal decline of only 0.07% to 141.9 million in April 2025.
Path Forward: Sustainable ISP Business Models
To survive the current economic pressures, experts like Jide Awe recommend that ISPs rethink their business models. They should adopt more flexible and creative data plans tailored to the realities of lower consumer incomes.
Awe suggests ISPs move beyond traditional bandwidth sales and offer bundled, sector-specific services aimed at SMEs, real estate, healthcare, and education sectors. Collaborations with agile startups and tech-savvy SMEs could foster innovation and digital transformation.
He also stresses improving service quality, customer support, and investing in alternative power sources like solar energy to boost service reliability. Exploring emerging technologies could help ISPs diversify revenue streams, improve competitiveness, and retain customers in a shrinking market.
