The approval of a 50% increase in telecom tariffs by the Nigerian Communications Commission (NCC) has significantly altered the country’s internet ecosystem. The new pricing structure, implemented at the start of 2025, affects charges on data, calls, and SMS across Nigeria’s telecommunications sector. While mobile network operators (MNOs) have experienced only modest disruption, the Internet Service Provider (ISP) segment has been severely impacted by customer attrition.

Newly released data from the NCC confirms a drastic reduction in the number of active internet users subscribing to ISPs. Out of 127 registered ISPs whose data were submitted, total active users dropped to 289,369 by the first quarter of 2025—down from 307,946 in the third quarter of 2024. The figures reflect a loss of nearly 18,600 subscribers in just six months, underlining the extent of the disruption.

Leading ISPs Suffer Customer Losses Despite Market Position
Even Nigeria’s most dominant ISPs have not escaped the effects of this new cost burden. The top three players—Spectranet, Starlink, and FibreOne—retained their positions but experienced sharp declines in subscriber numbers.

Starlink, the satellite internet company owned by Elon Musk’s SpaceX, which quickly rose to second place among ISPs by 2024, suffered a major blow after hiking its monthly subscription fee from ₦38,000 to ₦57,000. This significant price jump led over 6,000 subscribers to abandon the service between Q3 2024 and Q1 2025, reducing its user base from 65,564 to 59,509.

FibreOne experienced an even more severe decline, losing over 14,000 users during the same period. Despite these setbacks, the top providers remained in their respective ranks, which suggests that the downturn was industry-wide rather than isolated to one provider.

Nigeria’s Top 10 ISPs by Subscriber Numbers (Q1 2025)
The NCC’s Q1 2025 data ranks the top ISPs in Nigeria based on their number of active users:

Spectranet – 103,252 users

Starlink – 59,509 users

FibreOne – 19,000 users

Tizeti – 16,466 users

ipNX – 16,283 users

Broadbased Communications – 9,940 users

Ngcom – 6,448 users

VDT Communications – 5,564 users

Cyberspace Network Ltd – 4,087 users

Radical Technology Network Ltd – 3,674 users

These rankings show that while leadership positions remain unchanged, nearly every provider experienced some level of subscriber drop due to the increased cost of service.

Why Customers Are Leaving ISPs
The sharp increase in service charges across the board has made internet access less affordable for many Nigerians. Several factors have contributed to the rising cost of operations in the telecom industry—especially for ISPs—including inflation, currency devaluation, diesel price hikes, and the increasing cost of infrastructure maintenance. Unlike mobile operators, which often bundle services and benefit from larger economies of scale, ISPs tend to offer premium packages with fewer discounts, making them more vulnerable when customers reduce spending.

Additionally, satellite services like Starlink, despite their ability to reach remote areas, now appear prohibitively expensive for the average consumer, pushing many to seek cheaper mobile data packages or cancel service altogether.

Mobile Networks Remain Resilient
While ISPs bear the brunt of subscriber losses, mobile network operators have remained relatively stable. In fact, major mobile carriers such as MTN, Airtel, and Globacom recorded a combined increase of over 3 million new voice lines between January and March 2025.

MTN continues to dominate Nigeria’s mobile internet market with more than 75 million internet users, while Airtel holds second place with over 48 million. These networks, supported by widespread infrastructure and broader service offerings, have managed to retain their user base despite the tariff hike.

This resilience is largely due to the flexible and often subsidized data packages offered by mobile networks. Consumers faced with high ISP fees now find mobile data a more attractive and affordable alternative, especially as providers expand their 4G and 5G coverage nationwide.

Consumer Reactions and Public Criticism
The increase in tariffs has sparked strong reactions from both individual consumers and advocacy groups. Many subscribers, particularly those who rely on internet access for remote work and education, have expressed frustration over the sudden price jump.

Organizations representing consumer interests argue that the timing of the tariff hike, amid ongoing economic challenges, was insensitive and poorly managed. Some associations have even threatened legal action against regulatory bodies for approving the increase without sufficient consultation or safeguards for vulnerable users.

Meanwhile, labor unions and civil society groups have urged the government to reconsider the policy, warning that reduced internet access could widen Nigeria’s digital divide and slow economic growth.

Data Usage Trends Reveal Consumer Behavior Shift
NCC data also shows a decline in overall internet usage. Between January and April 2025, data consumption dropped from over 1 exabyte (1,000,930 terabytes) to approximately 983,283 terabytes—a clear indicator that customers are limiting online activity to save money.

In the same period, total internet subscriptions across all providers dropped by over a million, with active connections falling from 142.16 million to 141.25 million before experiencing a slight rebound in March.

This downward trend is a worrying sign for ISPs that depend on heavy usage and recurring subscriptions to remain profitable.

Future of ISPs: Innovate or Fade
The current landscape suggests that Nigeria’s ISPs must reevaluate their business models to remain relevant. Several steps could help service providers adapt:

Flexible Pricing: Introduce lower-cost, customizable internet packages tailored to different consumer segments.

Strategic Partnerships: Collaborate with mobile operators, tech companies, and content platforms to expand reach and service options.

Improved Customer Experience: Focus on service quality, faster speeds, and responsive support to retain loyal customers.

Alternative Revenue Streams: Offer enterprise-grade services, cloud solutions, and public Wi-Fi as value-added offerings.

Cost Efficiency: Embrace solar-powered infrastructure and software automation to lower operational costs.

Without meaningful changes, ISPs risk losing more customers as mobile networks and satellite-based solutions continue to capture the market with flexible pricing and wider availability.

Looking Ahead: Policy, Innovation, and Competition
As Nigeria’s telecom industry evolves, the pressure on ISPs will only intensify. With mobile operators expanding their 5G networks and improving service quality, the gap between them and traditional ISPs is narrowing.

Regulatory bodies may need to reassess the long-term impact of such steep price increases and consider ways to cushion the effect on lower-income consumers. Subsidies, tax incentives for infrastructure development, and broader stakeholder engagement could help stabilize the market.

Ultimately, only those providers that adapt quickly—by offering value, affordability, and reliability—will be able to weather the storm. The tariff hike has disrupted the status quo, and the future of ISPs in Nigeria now depends on their ability to innovate in a rapidly changing digital economy.