Lagos, Nigeria – Internet Service Providers (ISPs) in Nigeria have recorded a 6% decline in active subscribers, dropping from 307,946 in Q3 2024 to 289,369 in Q1 2025, as customers react to recent price increases approved by the Nigerian Communications Commission (NCC).
Key Findings
Market Contraction:
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Top 3 ISPs (Spectranet, Starlink, FibreOne) lost 22,000+ combined subscribers.
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Starlink’s first decline: Dropped 6,055 users after raising monthly fees to ₦57,000 (from ₦38,000).
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FibreOne hardest hit: Lost 14,000 customers (42% decline).
Why It’s Happening:
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50% tariff hikes make ISPs less competitive vs. mobile networks (MTN/Airtel 5G).
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Economic pressures: 28% inflation forces households to cut discretionary spending.
Top 10 ISPs in Nigeria (Q1 2025)
| Rank | ISP | Active Subscribers | Change (vs. Q3 2024) |
|---|---|---|---|
| 1 | Spectranet | 103,252 | -2,000 |
| 2 | Starlink | 59,509 | -6,055 |
| 3 | FibreOne | 19,000 | -14,010 |
| 4 | Tizeti | 16,466 | -1,817 |
| 5 | ipNX | 16,283 | -1,200 |
| 6 | Broadbased Communications | 9,940 | +940 |
| 7 | Ngcom | 6,448 | +441 |
| 8 | VDT Communications | 5,564 | -743 |
| 9 | Cyberspace Network | 4,087 | -513 |
| 10 | Radical Technology | 3,674 | -326 |
Sector Challenges
Mobile Network Competition:
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MTN/Airtel 5G rollout offers cheaper alternatives (₦15,000–₦25,000/month).
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Mobile internet penetration now at 45% vs. ISP’s 0.1%.
Operational Hurdles:
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Diesel costs (₦1,200/liter) inflate infrastructure expenses.
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Right-of-way fees delay fiber expansion.
Industry Reactions
ISP Executive (Anonymous):
“We’re squeezed between NCC’s tariff approval and customers’ price sensitivity. Survival requires innovative bundling.”
NCC Spokesperson:
“Tariff adjustments reflect rising operational costs. We’re monitoring market dynamics.”
What’s Next?
Price Wars: ISPs may introduce lower-tier plans to retain users.
5G Threat: Mobile operators could further erode ISP market share.
Regulatory Review: NCC may reconsider tariff policies if churn persists.
