Three internet service providers — Spectranet, Starlink and FibreOne — now dominate Nigeria’s ISP market, controlling 65% of all actively connected customers despite a shrinking industry, according to new Q2 2025 data from the Nigerian Communications Commission (NCC).
The NCC’s latest figures show that of the 224 licensed ISPs in the country, only 133 were active as of Q2, while nearly 40% of licensees have gone dormant.
The three dominant players accounted for 203,160 of the 313,713 active customers recorded in the quarter.
Spectranet remained the largest ISP with 99,520 customers, though it has recorded two straight quarters of decline.
Starlink continued its rapid ascent, growing from 59,509 customers in Q1 to 66,523 in Q2.
FibreOne held third place with 37,117 active users after recovering from earlier losses.
Other players such as iPNX, Tizeti, Broadbased Communications and VDT Communications each recorded below 16,000 customers.
Despite rising demand for broadband, the Nigerian ISP market continues to shrink as operators struggle with high bandwidth costs, Right of Way charges, inadequate spectrum and increasing competition from mobile network operators (MNOs).
Industry analysts say the situation worsened with the rollout of 5G by MTN and Airtel, which led many enterprise clients to abandon ISPs for 5G routers. Mobile operators are also expanding aggressively into the Fibre-to-the-Home segment.
Experts warn that the decline of ISPs poses a threat to Nigeria’s National Broadband Plan (NBP 2020–2025), which aims for 70% broadband penetration by the end of this year — a target that is now unlikely to be met.
Diseye Isoun, CEO of Content Oasis, said ISPs remain crucial for reliable connectivity in schools, hospitals and businesses, urging government support and a hybrid model similar to Brazil’s Telebras to sustain smaller providers.
VDT Communications CEO David Omoniyi said more than 200 licensed ISPs have disappeared over the years. “They are largely SMEs and need support to survive,” he said.
