Nigerians Shift to Low-Cost Internet Services as Mainstream ISPs Trail Behind

In the past week or so, it has become necessary for most Nigerians who are internet users to rethink their practice of spending on the internet, and this has been attributed to a drastic drop in customer base for some of Nigeria’s top Internet Service Providers (ISPs) like Starlink, Spectranet, and FibreOne. 

It is an indication of mounting economic difficulties, changed consumption patterns, and intense rivalry from cheap options.

Statistics made available by the Nigerian Communications Commission (NCC) give a better image of this trend. Active subscriber count over 127 ISPs fell from 307,946 to 289,369 between Q3 2024 and Q1 2025. Such ISPs were hit hardest that until now had been setting the pace when it comes to innovation and speed.

Starlink, Nigeria’s second largest ISP prior to losing so overnight, lost its initial significant number of customers. Within two quarters, it lost over 6,000 subscribers to reduce its base to 59,509 from 65,564. Spectranet, Nigeria’s favorite among the online community, had its base decline as well, losing 2,189 subscribers within the same two quarters.

But FibreOne dropped the lowest. Its customers dropped from 33,010 to just 19,000, a loss of over 14,000. The numbers bear witness to accelerating change in consumer habits, i.e., to mobile internet companies now that they also provide competitive broadband deals.

So what is driving this mass exodus?

Economic austerity that Nigerian consumers and businesses witness is cited by experts. With ever-rising data, machinery, and electricity bills, most consumers trim expenses and opt for affordability. AI policy activist Jide Awe shows how households and institutions are rethinking their budget, and internet plans are now no longer a priority, specifically high-end ones like Starlink whose monthly subscription was raised from ₦38,000 to ₦57,000.

Moreover, MNO players like Airtel and MTN are slowly encroaching the traditional ISP space through the push roll-out of FTTH solutions. This has made ISPs indistinguishable from MNOs, providing customers with a higher choice and spurring rethinking in the ISP realm.

By the end of March 2025, the four major MNOs, MTN, Airtel, Globacom, and 9mobile, had a combined 142 million active internet subscribers. To put this in perspective, there were only 289,369 subscribers to fixed ISPs.

To remain in the race, analysts are calling for business model shifts by ISPs. Jide Awe advocates for flexible plans for low-income consumers and bundled plans to SMEs, education, health, and property businesses. Partnership with tech-startups and utilization of different alternative power sources such as solar power would further improve reliability and customer satisfaction.

Ultimately, in order to thrive in Nigeria’s new internet economy, ISPs will be compelled to look beyond the ability of bandwidth providers. They must become end-to-end digital services facilitators who are able to provide innovation, flexibility, and affordability, the formula for remaining competitive in a cost-sensitive marketplace.