The soaring subscription costs and Nigeria?s worsening economic conditions were instrumental to the sharp decline in active internet users relying on Internet Service Providers (ISPs), as new data from the Nigerian Communications Commission (NCC) shows total ISP subscriptions fell to 289,369 in Q1 2025, down from 307,946 in Q3 2024.

The drop, which affected major players like Starlink, Spectranet, and FibreOne, reflects how inflation, rising data tariffs, and power-related costs are forcing many Nigerians to cut back on broadband services and switch to more affordable mobile internet options.

In a notable shift, Starlink, the satellite internet provider that surged to become Nigeria?s second-largest ISP in 2024, has now posted its first-ever customer loss in the country. According to NCC?s data, Starlink?s active user base dropped from 65,564 in Q3 2024 to 59,509 in Q1 2025, indicating that more than 6,000 subscribers had ditched the service within six months.

Likewise, Spectranet, one of Nigeria?s oldest and most established ISPs, also saw its subscriber base fall as the company?s active customer count declined from 105,441 to 103,252 during the same period, a loss of over 2,100 users.

Meanwhile, FibreOne, the third-largest ISP by customer volume, suffered the steepest drop as it lost more than 14,000 subscribers, with its customer base plunging from 33,010 to 19,000, according to NCC figures.

Industry analysts have linked the drop in ISP patronage to the country?s worsening economic climate, rising costs of service, and consumer migration to mobile internet alternatives.

IT analyst Jide Awe told LEADERSHIP that ISPs are now facing the full weight of Nigeria?s economic realities, adding that, many Nigerians, including small businesses and families, are prioritising essential expenses and cutting back on non-essential subscriptions.

The cost of maintaining an ISP subscription, he said, has become increasingly burdensome for households. Awe pointed to Starlink?s pricing, which increased from N38,000 to N57,000 per month, effective April, as an example of rising costs outpacing customer affordability.

This pricing shift came shortly after a 50 per cent tariff hike on voice and data services, implemented across the board by all telecom operators in February 2025, with the approval of the NCC. The policy move, though aimed at ensuring sustainability in the telecom sector, he said, has sparked concern among users already reeling from inflation and currency volatility.

With these changes he stressed that more Nigerians are turning to mobile network operators (MNOs) for internet access, drawn by flexibility, affordability, and widespread coverage. While ISP subscriptions declined, mobile internet usage remained relatively stable. NCC?s records show that MTN, Airtel, Globacom, and 9mobile collectively maintained over 141.9 million active internet subscriptions as of April 2025, a slight drop of just 0.07 percent from March.

This growing preference for mobile internet, he said, highlights the widening gap between ISPs and MNOs. Of the 234 licensed ISPs in Nigeria, only 127 had any active customers by Q1 2025, reinforcing the need for industry players to rethink their approach to service delivery and customer engagement.

The drop in ISP subscriptions, especially among top-tier players like Starlink and Spectranet, paints a clear picture of shifting consumer priorities and growing demand for affordable, flexible connectivity options.

As ISPs face declining numbers, Awe is calling for a radical rethink of their business models. Selling bandwidth alone is no longer enough. ISPs must become more flexible with pricing, develop customised data plans for low-income users, and create bundled services that address real needs in sectors like education, real estate, and healthcare,? Awe added.

He also advised ISPs to explore partnerships with agile startups and SMEs, as well as invest in alternative energy sources such as solar power to improve service reliability in the face of power supply challenges.

Additionally, enhancing customer support and trust will be vital for ISPs hoping to regain lost ground and compete effectively with mobile networks, he said.

?As emerging technologies evolve, Nigerian ISPs must embrace innovation, diversify revenue streams, and offer more than just internet access. Otherwise, they risk becoming irrelevant in a market rapidly adapting to economic pressures and digital shifts,? Awe warned.

On his part, the chief operating officer of eStream Networks Limited, Martins Akingba told LEADERSHIP that, while fibre broadband has the pote?tial to significantly reduce the cost of internet access, its deployment across Nigeria is still limited to major urban centres like Lagos, Abuja, Port Harcourt, Ibadan, and a few other state capitals.

?Fibre is not a mass market service as of today in Nigeria. It will take years of sustained investment to make any appreciable impact,? Akingba said, noting that, even in developed economies, fibre penetration is largely concentrated in metropolitan areas.

He added that, beyond poor fibre reach, the lack of adequate infrastructure, especially, reliable power, and the absence of a national incumbent operator have made broadband services expensive and inaccessible for many. Private investors who have laid infrastructure often restrict access or charge uncompetitive rates, Akingba explained. (LEADERSHIP)

Update news