The Nigerian Communications Commission (NCC) has issued operating licences to six new Internet Service Providers (ISPs), effective January 1, 2026, further intensifying competition in Nigeria’s broadband market amid mounting pressure on existing operators.
The development was confirmed through the NCC’s updated licensing database, which shows that the total number of licensed ISPs has increased to 231, up from 225 recorded in December 2025.
The latest additions come despite growing market concentration, shrinking customer bases for many providers, and increasing dominance by major players.
Industry observers note that the expansion in licences is taking place at a challenging time for traditional ISPs, many of which are struggling to compete with cheaper and more flexible retail data offerings from mobile network operators such as MTN, Airtel, Globacom and 9mobile.
The sector is also facing disruption from satellite broadband providers, particularly Elon Musk’s Starlink, which has rapidly gained market share since entering Nigeria in 2023.
The newly licensed ISPs are Intellvision Technologies Limited, Granet Technologies Limited, Fiber Sonic Limited, Dasol Solution Services Ltd, Boost ISP Limited, and Amazon Kuiper Nigeria Limited.
Five of the new licensees are headquartered in Lagos, while only one—based in Owerri, Imo State—operates outside the country’s main commercial hubs.
NCC data highlights a persistent geographic concentration of ISP operations in major urban centres, particularly Lagos, Abuja and Port Harcourt.
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Analysts say this clustering reflects high infrastructure deployment costs, demand concentration, and the difficulty of extending broadband services to underserved and rural areas.
While licensing activity continues to grow, market participation remains uneven, with operational strength still heavily tilted toward a handful of regions and operators.
Existing ISPs have raised concerns about an uneven competitive landscape, arguing that smaller providers are increasingly squeezed by the scale, capital strength and nationwide reach of dominant mobile network operators.
“You cannot fight the big player; that is the reality,” said Chidi Ibisi, Executive Director, Business Development at Broadbased Communications Ltd. “What we are asking for is a way to work harmoniously, where everyone gets a piece of the pie.”
Ibisi warned that large operators could crowd smaller ISPs out of the market—not necessarily through unfair practices, but through superior investment capacity, infrastructure depth and pricing power.
Echoing similar concerns, FibreOne’s Head of Regulatory and Public Relations, Kehinde Joda, said the ISP sub-sector is grappling with multiple structural challenges.
He noted that many operators still rely on traditional business models that focus solely on selling basic internet access, without offering clear differentiation or value-added services
“Innovation is not just about technology,” Joda said. “It is about how you design your packages, how you manage customers, and how you adapt to changing needs.” He also identified infrastructure costs as a major hurdle, noting that deploying and maintaining fibre networks is highly capital-intensive.
Competition in Nigeria’s ISP market has also evolved beyond the long-standing rivalry between fixed broadband providers and mobile network operators.
The entry of satellite-based ISPs, which offer wider coverage and faster deployment timelines, has altered consumer preferences and intensified pressure on terrestrial operators.
According to the NCC, the licensing of Amazon Kuiper underscores Nigeria’s openness to global satellite broadband providers and reflects growing demand for high-speed internet in underserved and hard-to-reach areas.
NCC data for the second quarter of 2025 shows that Spectranet, Starlink and FibreOne collectively accounted for about 65 per cent of active ISP customers in the country.
Out of 125 licensed ISPs at the time, only 133 reported active connections, with a combined subscriber base of 313,713 users.
Spectranet remained the largest ISP with 99,520 active customers, although its subscriber base declined for the second consecutive quarter. Starlink continued its rapid growth, increasing its customers from 59,509 in the first quarter of 2025 to 66,523 in the second quarter, while FibreOne ranked third with 37,117 customers.