The Nigerian Communications Commission has licensed six new Internet Service Providers (ISPs) to operate in Nigeria, effective January 1, 2026, deepening competition in a market already under pressure from mobile network operators.
The development was confirmed through the NCC’s updated licensing database, which shows a rise in the number of authorised ISPs despite growing market concentration and shrinking customers.
The new licences come at a time when traditional ISPs are grappling with cheaper retail data offerings from MTN, Airtel, Globacom, and 9mobile, as well as disruption from Elon Musk’s Starlink.
NCC licensing data shows that the addition of six companies has pushed the total number of licensed Internet Service Providers in Nigeria to 231 from 225 in December 2025.
The data also highlights a strong geographic concentration of ISP operations in a few urban centres, underscoring persistent gaps in broadband distribution across the country.
The data suggests that while licensing activity continues to grow, market participation remains uneven, with operational strength still heavily tilted toward a handful of regions.
The issuance of new ISP licences comes amid mounting concerns from existing operators over the competitive imbalance between small ISPs and dominant mobile network operators.
Industry players argue that without targeted regulatory safeguards, smaller providers may struggle to survive in a market shaped by scale, capital intensity, and aggressive pricing.
“You can not fight the big player; that is the reality; what we are asking for is a way to work harmoniously, where everyone gets a piece of the pie,” said Chidi Ibisi, Executive Director, Business Development at Broadbased Communications Ltd.
Ibisi warned that dominant operators could crowd smaller ISPs out of the market, not necessarily through unfair practices, but through sheer investment power and nationwide reach.
Another key challenge, according to him, is infrastructure cost. He said deploying and maintaining robust networks, especially fibre, is capital-intensive.
Competition in the ISP market has evolved beyond the long-standing rivalry between fixed broadband providers and mobile network operators.
The entry of satellite-based ISPs with broader coverage and relatively faster deployment has altered consumer preferences and intensified pressure on terrestrial operators.
The NCC said the licensing of Amazon Kuiper reflects Nigeria’s openness to global satellite broadband providers and responds to rising demand for high-speed internet across underserved and hard-to-reach areas.
Naijaonpoint previously reported that the Nigerian ISP market is becoming increasingly concentrated around a few dominant players.
Data released by the NCC for the second quarter of 2025 showed that Spectranet, Starlink, and FibreOne accounted for a significant majority of active ISP customers.
Data released by the NCC for the second quarter of 2025 showed that Spectranet, Starlink, and FibreOne accounted for a significant majority of active ISP customers.
The three ISPs controlled about 65% of customers actively connected to ISPs as of Q2 2025.
With new licences being issued and satellite operators expanding aggressively, competitive pressures in Nigeria’s ISP market are expected to intensify further in the coming years.