Some of Nigeria’s biggest Internet Service Providers (ISPs), including Starlink and Spectranet, are seeing a significant drop in customer numbers, as inflationary pressures and shifting market dynamics force Nigerians to cut back on internet spending and prioritize cheaper alternatives.
According to fresh data from the Nigerian Communications Commission (NCC), total active subscribers across 127 ISPs dropped from 307,946 in Q3 2024 to 289,369 in Q1 2025—a net loss of over 18,500 customers. The decline represents a major blow for ISPs, many of which had hoped to ride the wave of digital transformation and remote work adoption triggered by the pandemic.
Starlink, Elon Musk’s satellite internet provider, which entered Nigeria last year and quickly surged to become the second-largest ISP by subscriber base, saw its first recorded drop. Its active user count fell from 65,564 in Q3 2024 to 59,509 by the end of Q1 2025—losing over 6,000 customers within six months.
Spectranet, Nigeria’s oldest surviving fixed wireless broadband provider and the largest ISP by subscribers, wasn’t spared either. Its subscriber base dropped by 2,189, from 105,441 to 103,252. FibreOne suffered the most substantial loss, shedding over 14,000 customers and seeing its base collapse from 33,010 to 19,000.
Why Nigerians Are Ditching ISPs
Analysts attribute the slump primarily to rising costs amid deepening economic hardship. With high inflation and a weakening naira, the cost of data, equipment, and power supply has become a burden for households and small businesses.
“The rising costs mean many families and small businesses have to focus strictly on essentials. Maintaining ISP subscriptions is not a priority,” said Jide Awe, an innovation policy advisor and founder of Jidaw.com.
He noted that Starlink, in particular, has been affected by its premium pricing structure. Its monthly subscription rose from N38,000 to N57,000, with the hike taking effect in April after the NCC approved a 50% tariff increase across telecom services in February.
Beyond the cost, many users are also migrating to mobile networks, which are more affordable and flexible. Unlike ISPs that mostly cater to businesses or home setups, Mobile Network Operators (MNOs) like MTN, Airtel, Globacom, and 9mobile provide more user-friendly data packages suited to individual needs.
“The recent entry of mobile networks into the Fiber to the Home (FTTH) space has put ISPs under more pressure,” said Tony Emoekpere, President of the Association of Telecommunications Companies of Nigeria (ATCON). “It’s not fair competition anymore. ISPs are now facing both regulatory and commercial threats.”
For Kelvin Ayodele, a small business owner in Lagos, the math didn’t add up anymore. “I stopped subscribing to Starlink two months ago when they increased prices. I switched to a mobile network provider—it’s cheaper and still delivers what I need,” he told Nairametrics.
ISPs Losing Ground to MNOs
The figures put the scale of the problem in perspective. While ISPs collectively served just under 290,000 customers by Q1 2025, Nigeria’s four MNOs—MTN, Airtel, Glo, and 9mobile—commanded 142 million active internet subscribers. Even after the February tariff hike, mobile internet subscriptions only dipped slightly to 141.9 million by April, a marginal 0.07% decline.
Currently, 234 companies are licensed as ISPs in Nigeria, but NCC data shows that only 127 had active customers in the first quarter of 2025. This growing discrepancy underscores a shrinking market share for fixed broadband operators and reveals the lopsided dominance of mobile broadband services.
What Next? Rethinking the ISP Business Model
To survive Nigeria’s volatile economic terrain, experts are urging ISPs to innovate beyond selling bandwidth.
“ISPs need to be more creative in data offerings, possibly through flexible, low-cost plans that fit current household and SME realities,” Jide Awe advised. He stressed the importance of bundling services, suggesting that ISPs could integrate digital tools or content tailored to education, healthcare, or real estate to create more value for customers.
He also encouraged strategic partnerships with tech-savvy startups, investments in off-grid energy sources like solar to cut operational costs, and improved customer support to build loyalty. “ISPs should also explore emerging technologies to enhance competitiveness and diversify their revenue streams,” he added.
While ISPs continue to grapple with pricing and infrastructure challenges, experts warn that their future in Nigeria’s internet economy will likely depend on how well they can pivot from traditional fixed services to more integrated, value-based offerings—especially as MNOs tighten their grip on the broadband market.