Top internet service providers (ISPs) in Nigeria, including Starlink and Spectranet, have witnessed a significant drop in active customer numbers as Nigerians tighten spending on internet services.
According to fresh data released by the Nigerian Communications Commission (NCC), total active users across 127 ISPs dropped to 289,369 in Q1 2025, down from 307,946 in Q3 2024. Starlink, which had risen to become the second-largest ISP, recorded its first decline, losing over 6,000 subscribers in the period.
Spectranet, Nigeria’s leading ISP by subscriber count, also saw its active users dip from 105,441 to 103,252, while FibreOne suffered the steepest loss, shedding over 14,000 users. Industry experts attribute the downward trend to rising operational costs, economic hardship, and a growing preference for mobile networks.
Founder of Jidaw.com, Mr. Jide Awe, noted that increasing costs of data, equipment, and power have pushed many families and SMEs to cut back on ISP subscriptions, opting instead for more affordable mobile broadband alternatives.
Further compounding the challenge is the incursion of mobile network operators into the Fiber to the Home (FTTH) space, previously dominated by traditional ISPs. The President of the Association of Telecommunications Companies of Nigeria (ATCON), Mr. Tony Emoekpere, criticised the development, noting that it places smaller ISPs at a disadvantage.
The February tariff hike, approved by the NCC, also played a role, with Starlink raising its monthly fee from N38,000 to N57,000 in April. Users like Lagos-based business owner Kelvin Ayodele have since migrated to cheaper mobile network options.
Despite the challenges, experts believe Nigerian ISPs can survive by adopting new business models. Jide Awe advised ISPs to become more innovative, offering flexible data plans and bundled services tailored to sectors like education, real estate, and healthcare.
He urged collaboration with tech startups to drive innovation and digital transformation. With only 127 out of 234 licensed ISPs reporting active users and mobile operators accounting for over 142 million internet subscribers, the ISP segment will need strategic rethinking to remain competitive in Nigeria’s evolving digital economy.