By Gabriel Ameh
Nigeria’s broadband sector is entering a critical new phase as the Nigerian Communications Commission (NCC) expands the pool of licensed Internet Service Providers (ISPs), reaffirming broadband connectivity as a strategic pillar of the nation’s digital economy despite mounting structural challenges.
With the approval of six new Internet Service Providers, effective January 1, 2026, the NCC is signalling confidence in long-term demand for internet services while underscoring the urgency of sustaining competition in an increasingly complex market. According to the Commission’s updated licensing database, the total number of licensed ISPs has increased from 225 in December 2025 to 231.
The newly licensed operators Intellvision Technologies Limited, Granet Technologies Limited, Fiber Sonic Limited, Dasol Solution Services Ltd, Boost ISP Limited, and Amazon Kuiper Nigeria Limited enter a market that is both intensely competitive and increasingly shaped by scale, capital strength, and technological sophistication.
While the growing number of licences reflects regulatory openness and apparent market vibrancy, industry data reveals a more nuanced reality. Many ISPs continue to struggle with shrinking subscriber bases, as active customers become increasingly concentrated among a few dominant players. This paradox more licences but fewer viable competitors has emerged as one of the defining challenges of Nigeria’s broadband ecosystem.
Geographical imbalance remains a major fault line. Five of the six newly licensed ISPs are headquartered in Lagos, with only one based in Owerri, Imo State, operating outside Nigeria’s major commercial centres.
This trend mirrors a long-standing pattern in which ISP activity is concentrated in Lagos, Abuja and Port Harcourt, driven by high infrastructure costs, stronger consumer purchasing power, and limited incentives to expand into rural and underserved areas. As a result, broadband penetration remains uneven, raising concerns about the pace of inclusive digital growth nationwide.
The timing of the new licences is also significant. Traditional ISPs face sustained pressure from mobile network operators MTN, Airtel, Globacom and 9mobile whose data services are often cheaper, more accessible, and bundled with voice offerings. At the same time, satellite broadband has emerged as a disruptive force. Starlink’s entry into Nigeria in 2023 rapidly altered the competitive landscape, particularly in regions poorly served by terrestrial infrastructure.
Against this backdrop, the approval of Amazon Kuiper Nigeria Limited represents a strategic inflection point.
The entry of another global low-Earth orbit (LEO) satellite provider is expected to intensify competition in space-based broadband, with far-reaching implications for pricing, coverage, and consumer choice. The NCC has framed the move as part of Nigeria’s openness to global broadband investment and a response to rising demand for high-speed internet in hard-to-reach communities.
Industry stakeholders, however, warn that competition in the sector is becoming increasingly asymmetric. Smaller ISPs argue that the challenge lies less in regulation and more in survival within a market dominated by capital-intensive operators.
“You cannot fight the big player; that is the reality,” said Chidi Ibisi, Executive Director of Business Development at Broadbased Communications Ltd, noting that smaller operators risk being edged out by the scale and investment capacity of dominant firms. He called for a framework that allows different categories of operators to coexist sustainably.
Similar concerns were echoed by Kehinde Joda, Head of Regulatory and Public Relations at FibreOne, who pointed to outdated business models and rising infrastructure costs as key constraints. He argued that many ISPs still rely on selling basic internet access without sufficient differentiation, stressing that innovation must extend beyond technology to include customer experience, service design, and operational agility.
The capital-intensive nature of fibre deployment and maintenance, he added, continues to limit expansion for smaller players.
NCC data reinforces these concerns. As of the second quarter of 2025, just three operators Spectranet, Starlink, and FibreOne accounted for approximately 65 per cent of active ISP subscribers nationwide. Out of 125 licensed ISPs reviewed during the period, only a fraction reported active connections, with total subscribers standing at 313,713.
As Nigeria accelerates digitalisation across government services, commerce, education, and innovation, the health of its broadband market has become a national economic concern. The NCC’s latest licensing decision highlights a delicate balancing act: encouraging new entrants and global investment while ensuring competition remains meaningful, inclusive, and capable of supporting Nigeria’s long-term digital ambitions.
