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Nigeria’s ISPs loses customers to high costs, tough economy

Nigeria’s leading internet service providers are experiencing a steady decline in subscriber numbers, as new data from the Nigerian Communications Commission

Nigeria’s leading internet service providers are experiencing a steady decline in subscriber numbers, as new data from the Nigerian Communications Commission points to shrinking user bases across the board.

According to NCC’s Q1 2025 report, the total number of active customers among 127 licensed ISPs dropped to 289,369—down from 307,946 recorded in Q3 2024.

Some of the biggest names in the sector were hit hardest. Starlink, the satellite-based provider owned by Elon Musk, lost over 6,000 subscribers, despite recently overtaking FibreOne as Nigeria’s second-largest ISP. FibreOne itself saw a steep decline of more than 14,000 users, while long-time market leader Spectranet shed 2,189 customers.

The downturn, analysts say, is largely driven by Nigeria’s worsening economic conditions. In a year marked by inflation and rising living costs, internet connectivity is becoming a luxury many can no longer afford.

In early 2025, Starlink raised its monthly subscription fee from $24.76 to $37.14. Around the same time, Spectranet hiked its data prices by an average of 36%. For many Nigerians—especially households and small businesses—these increases have proven unsustainable.

“When families are forced to choose between food, electricity, and entertainment, internet subscriptions are among the first to go,” one industry observer noted.

Adding to the pressure is the growing competition from mobile network operators (MNOs), who offer cheaper, pay-as-you-go data plans. With more flexible options and lower upfront costs, many users are choosing to rely on mobile data over fixed ISPs.

While a full migration to MNOs is unlikely—especially for heavy data users—analysts warn that ISPs risk losing more ground if they fail to adapt their pricing and service models to Nigeria’s increasingly price-sensitive market.

Unless ISPs recalibrate their strategies to reflect the realities of a low-income economy, they may find themselves struggling to keep up in a sector that’s rapidly evolving without them.

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