FibreOne, a Nigerian fixed broadband provider, has recorded a 42.4% drop in its subscriber base between Q3 2024 and Q1 2025, marking the steepest decline among all internet service providers (ISPs) in the country during the period.

Data released by the Nigerian Communications Commission (NCC) shows that FibreOne’s users fell from 33,010 to just over 19,000, reflecting broader challenges facing Nigeria’s fixed broadband sector. The industry lost over 18,000 users, and 18 ISPs exited the market within the same timeframe.

Economic pressures, including a 50% telecom tariff hike approved in February 2025, rising diesel costs, currency volatility, and high infrastructure overheads, are driving users away from fixed broadband. Unlike mobile networks—MTN, Airtel, Globacom, and 9mobile—whose combined user base now exceeds 141.9 million, ISPs are losing ground due to pricing and accessibility disadvantages.

“ISPs like FibreOne are feeling the full weight of Nigeria’s economic realities,” telecom analyst Jide Awe told TechCabal. He recommended that providers bundle services, target strategic sectors like healthcare and education, and adopt solar power solutions to reduce operating costs.

Despite the broader trend, FibreOne’s losses are particularly sharp, revealing what industry observers describe as weak strategic positioning and insufficient policy support. “ISPs are treated as peripheral, but they are critical to the broadband ecosystem,” said Diseye Isoun, CEO of Content Oasis. “What’s missing is policy—not just investment.”

Isoun pointed to international models like Brazil’s Telebras, where the government partners with vetted ISPs to provide connectivity to priority sectors such as schools and hospitals. Nigeria’s current market-driven approach, he said, continues to leave smaller ISPs exposed.

The contraction is visible in licensing data: from 252 licensed ISPs in Q4 2023, only 106 were active. By Q1 2025, licensed ISPs dropped to 234, with just 127 operational.

Starlink, once seen as a breakthrough for remote areas, has also seen reduced uptake following a price increase from ₦38,000 to ₦57,000 per month earlier this year. “Many Nigerians are cutting down on their subscriptions,” a Starlink retailer told reporters.

Telecom expert Nnamdi Richards suggested structural reforms to stabilise the ISP sector, including mergers, public listings, and stronger financial regulation. “We may need a solution similar to what was done with the banking sector,” he said.

Richards also flagged seasonal vulnerabilities: “We’re in the rainy season now. Lightning strikes and flooding are a nightmare for small ISPs.”

Without strategic intervention, industry observers warn that Nigeria’s over-reliance on mobile broadband could impair its long-term digital infrastructure goals.