FibreOne has suffered a 42.4% drop in subscribers, losing over 14,000 users within six months.
This is the steepest decline among Internet Service Providers (ISPs) in the country, pointing to the widening gap between the promises of broadband expansion and the challenging market realities these providers face.
Between Q3 2024 and Q1 2025, FibreOne’s subscriber base fell from 33,010 to just over 19,000, according to data released by the Nigerian Communications Commission (NCC).
This happened as ISPs collectively shed over 18,000 users and 18 companies exited the market. While Starlink declined by 9% and Spectranet by 2.08%, FibreOne’s near-collapse stands out.
Several forces converged to drive this drop, chief among them being Nigeria’s worsening economic conditions. A 50% increase in telecom tariffs approved in February 2025, coupled with rising diesel prices, FX imbalance, and expensive infrastructure, has pushed fixed broadband beyond the reach of many households and businesses. For FibreOne and others, this has turned retention into an uphill battle.
Mobile networks, meanwhile, have stayed untouched. MTN, Airtel, Globacom, and 9mobile collectively hold over 141.9 million internet users as of April 2025. Their edge? Affordability, accessibility, and increasing forays into Fibre to the Home (FTTH), where they’re now challenging traditional ISPs with flexible pricing and wider reach.
But FibreOne’s downfall exposes a lack of strategy, poor adaptability, and the absence of policy support. Telecom analyst Jide Awe told TechCabal: “ISPs like FibreOne are feeling the full weight of Nigeria’s economic realities.”
Awe believes there’s still a path forward if ISPs adapt. “They should consider bundling services, target underserved sectors like education and healthcare, and invest in solar solutions to cut operating costs,” he said.
FibreOne is not alone in this struggle, but it may be the most visible casualty of an ecosystem in retreat. While mobile data has become the default for most Nigerians, the downside is becoming more obvious, mobile internet cannot handle the demands of e-learning, telemedicine, enterprise networking, or institutional-scale connectivity.
Diseye Isoun, CEO of Content Oasis, offered a more structural critique: “At the end of the day, ISPs are treated as peripheral, but they are critical to the broadband ecosystem—especially for schools, hospitals, and local businesses. What’s missing is policy—not just investment—that ensures ISPs can serve strategic access points.”
Isoun advocates a model inspired by Brazil’s Telebras—government-backed partnerships with vetted ISPs to guarantee broadband in priority sectors. It’s a contrast to Nigeria’s market-driven approach, which continues to choke out smaller ISPs and leaves critical institutions under-connected.
The data reflects this squeeze. In Q4 2023, Nigeria had 252 licensed ISPs; only 106 were active. By Q1 2025, licensed ISPs had dropped to 234, with just 127 operational. The gap between those with licences and those who can afford to stay in business is increasing.
The situation with Starlink further complicates matters. Initially celebrated as a game-changer for remote connectivity, Starlink has faced underwhelming adoption. Its monthly fees rose from ₦38,000 to ₦57,000 in early 2025, pricing out average users.
A Starlink retailer confirmed the retreat: “Many Nigerians are cutting down on their subscriptions. I know a couple of people who have scaled down on the subs.”
As the broadband market thins out, what remains is a fragmented sector, over-reliant on mobile operators, with serious implications for national digital capacity.
Nnamdi Richards, a telecom expert, suggested structural reform: “We may need a solution similar to what was done with the banking sector: mergers, acquisitions, IPOs, SEC listings. That could help stabilise some of them financially.”
He also pointed to seasonal risks ISPs now face: “We’re in the rainy season now, and lightning strikes and flooded communities. This is a nightmare for small ISPs without the capacity to cope.”
Without urgent reforms, strategic partnerships, and smarter pricing, Nigeria risks sidelining an important pillar of its digital sustainability.
