Internet service providers (ISPs) like Starlink and Spectranet have seen a drop in subscribers as Nigerians reduce their spending on internet services.
Data from the Nigerian Communications Commission (NCC) shows that active customers across 127 ISPs fell from 307,946 in Q3 2024 to 289,369 in Q1 2025. Starlink, which became Nigeria’s second-largest ISP last year, lost over 6,000 users, dropping from 65,564 to 59,509 customers. Spectranet, the largest ISP by customer count, also saw a decline of about 2,200 users, while FibreOne experienced the biggest loss, shedding over 14,000 customers in the same period.
Experts say the main reason for this decline is the rising cost of internet services. Jide Awe, an Innovation and Technology policy advisor, explained that many Nigerians are cutting back due to higher prices for data, equipment, and power. Starlink’s higher device and subscription costs make it less affordable for many. Some businesses are switching to mobile network operators (MNOs) because they offer cheaper and more flexible internet options.
Tony Emoekpere, President of the Association of Telecommunications Companies of Nigeria (ATCON), pointed out that mobile operators moving into fiber services, traditionally dominated by ISPs, also affects ISP customer numbers. He added that tariff hikes implemented in February further contributed to the drop.
For example, Lagos-based small business owner Kelvin Ayodele stopped using Starlink after prices rose from ₦38,000 to ₦57,000 monthly. He now uses a mobile broadband service that offers similar value at a lower cost.
Despite the challenges for ISPs, mobile networks remain dominant with over 141 million active internet subscriptions as of April 2025, showing only a slight decline after tariff increases.
To survive, experts suggest ISPs must rethink their business models. Awe recommends offering more flexible data plans, bundling services for sectors like education and health, partnering with startups, and investing in reliable power sources like solar energy. Exploring new technologies could also help ISPs stay competitive and keep customers.
