Nigeria’s Top ISPs Lose Thousands of Customers as Economic Pressures Shift Demand to Cheaper Mobile Networks
Some of the largest Nigeria Internet service providers (ISP), including Starlink and Spectranet, see a significant drop in customer numbers, because inflationary pressures and changing market dynamics require Nigerians to reduce Internet spending and prioritize cheaper alternatives.
According to new data from Nigerian Communications Commission (NCC), total active subscribers of 127 ISP went from 307,946 in the third quarter of 2024 to 289,369 in the first quarter of 2025 – a net loss of more than 18,500 customers. The drop represents a major blow for the ISPs, many of which had hoped to set up the wave of digital transformation and remote work adoption triggered by the pandemic.
Starlink, Elon Musk’s satellite internet supplier, who entered Nigeria last year and quickly increased to become the second largest ISP by Subscriber Base, saw his first recorded drop. Its active number of users increased from 65,564 in the third quarter of 2024 to 59,509 at the end of T1 2025, loss of more than 6,000 customers within six months.
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Spectranet, the oldest wireless large -strip supplier in Nigeria and the biggest ISP by subscribers, was not spared either. Its subscriber base fell from 2,189, from 105,441 to 103,252. Fiberone underwent the most substantial loss, eliminating more than 14,000 customers and seeing its base collapse from 33,010 to 19,000.
Why the Nigerians abandon the FAI
Analysts attribute the collapse mainly upon costs in the context of deepening economic difficulties. With high inflation and weakening Naira, the cost of data, equipment and power supply has become a burden for households and small businesses.
“The cost increase means that many families and small businesses must be strictly focused on essential elements. Maintaining FAI subscriptions is not a priority, “said Jide AWE, an innovation policy advisor and founder of Jidaw.com.
He noted that Starlink, in particular, was affected by its premium price structure. Its monthly subscription went from 38,000 N to 57,000 N, the increase, passing in force in April after the NCC approved an increase in the rate of 50% between telecommunications services in February.
Beyond the cost, many users also migrate to mobile networks, which are more affordable and flexible. Unlike the ISP which is mainly aimed at companies or configurations of houses, mobile network operators (MNO) such as MTN, Airtel, Globacom and 9mobile provide more user -friendly data packages adapted to individual needs.
“The recent entry of mobile networks in the Fiber to the Home (FTTH) space has put the hone for more pressure,” said Tony Emechpere, president of the association of Telecommunications Companies of Nigeria (ATCON). “It is no longer fair competition. ISPs are now faced with regulatory and commercial threats. ”
For Kelvin Ayodele, owner of a small business in Lagos, mathematics no longer add up. “I stopped subscribing to Starlink two months ago when they increased prices. I went to a supplier of mobile networks-it’s cheaper and always book what I need,” he told Nairametrics.
Losing ground against OMN
The figures are the magnitude of the problem in perspective. While the ISPs have collectively served a little less than 290,000 customers in T1 2025, the four OMN of Nigeria – MTN, Airtel, Glo and 9mobile – came 142 million active internet subscribers. Even after the February pricing hike, mobile internet subscriptions only fell slightly at 141.9 million in April, a marginal drop of 0.07%.
Currently, 234 companies are under license as ISP in Nigeria, but CNC data show that only 127 had active customers in the first quarter of 2025. This growing difference underlines a share of narrowing market for large fixed strip operators and reveals the unbalanced domination of large mobile band services.
What to follow? Rethink the ISP business model
To survive the Volatil economic field of Nigeria, experts urged the ISPs to innovate beyond the sale of the bandwidth.
“ISPs must be more creative in data offers, perhaps thanks to flexible and low cost plans that correspond to the current realities of households and SMEs,” advised Jide AWE. He highlighted the importance of regrouping services, suggesting that ISPs could integrate digital tools or content adapted to education, health care or real estate to create more value for customers.
He has also encouraged strategic partnerships with informed startups in technology, investments in out -of -network energy sources like Solar to reduce operational costs and improved customer support to retain. “ISPs should also explore emerging technologies to improve competitiveness and diversify their sources of income,” he added.
While the ISPs continue to deal with price and infrastructure challenges, experts warn that their future in the Nigeria Internet economy will probably depend on how they can pass traditional fixed services to more integrated and value -based offers, especially when MNOs tighten their grip on the large band market.
