Nigeria’s ISP Market Shrinks as Spectranet, Starlink, FibreOne Capture 65% of Customers

4 Min Read

Nigeria’s Internet Service Provider (ISP) market is contracting fast, even as demand for high-speed broadband accelerates — and three providers now control nearly two-thirds of all customers.

By the numbers

  • 224 ISPs are registered with the NCC.
  • Only 133 were active in Q2 2025 — meaning nearly 40% have gone dormant.
  • Of those active ISPs, Spectranet, Starlink, and FibreOne serve 203,160 customers, equal to 65% of all ISP-connected users (313,713 total).
  • The remaining 130 ISPs share just 110,553 customers (35%).

The big picture

New Q2 2025 data from the Nigerian Communications Commission shows a market shake-out driven by intensifying competition, rising costs, spectrum constraints, and pressure from mobile network operators (MNOs) aggressively expanding broadband offerings.

The leaders

ISPCustomers
Spectranet99,520
Starlink66,523
FibreOne37,117
iPNX15,636
Tizeti13,996
Broadbased Communications9,942
VDT5,325

Spectranet

  • Still the largest ISP, but slipping.
  • 99,520 customers in Q2 2025, down from 103,252 in Q1.

Starlink

  • Closing in fast.
  • Jumped from 59,509 (Q1) to 66,523 (Q2).

FibreOne

  • Rebounded after a Q1 decline.
  • Now at 37,117 active customers.

Other notable players: iPNX (15,636), Tizeti (13,996), Broadbased Communications (9,942), VDT (5,325).

Driving the contraction

NCC has long warned that ISPs are struggling to survive. Former NCC chief Umar Danbatta noted:

  • 568 ISPs had gone inactive as of March 2022.
  • Key issues: high bandwidth prices, Right of Way costs, spectrum scarcity, and weak corporate governance.

Analysts say the downturn worsened with:

  • MTN and Airtel’s 5G rollout, which lured enterprise clients away from ISPs.
  • MNOs’ aggressive rollouts of Fiber-to-the-Home (FTTH) — encroaching deep into ISP territory.

Zoom out: MNOs still dominate internet access

While ISPs provide dedicated internet services, mobile operators (MTN, Airtel, Globacom, 9mobile) provide internet under broader unified licenses.

  • ISPs (133 active): 313,713 subscribers in Q2.
  • Mobile operators: 140.6 million internet subscriptions.

Reality check: Businesses — traditionally loyal to ISPs — are also shifting to MNOs for cost and flexibility.

Why it matters

Nigeria is unlikely to meet its National Broadband Plan (NBP 2020–2025) target of connecting 70% of the population to high-speed internet by year-end.

Experts warn that sidelining ISPs could further slow progress.

What they’re saying

Diseye Isoun, CEO, Content Oasis:ISPs are peripheral but essential — especially for schools, hospitals, and local businesses.”

He argues for a hybrid model, similar to Brazil’s Telebras, where government-backed partnerships ensure minimum connectivity in critical sectors.

On over-reliance on mobile broadband: “You can’t fix university connectivity with mobile internet alone. You need durable infrastructure and guaranteed service levels.”

David Omoniyi, CEO, VDT Communications: “Indigenous ISPs are disappearing… They are largely SMEs and need support to survive.”

He calls for government intervention to keep ISPs alive and ensure Nigeria’s broadband goals don’t stall.

The bottom line

Nigeria’s ISP landscape is consolidating rapidly — and without targeted policy support, many smaller players may disappear just as the country pushes for universal broadband access.

Source: Nairametrics


AI Writer for Tech Labari