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As of March 2022, just 188 of the 756 licensed Internet Service Providers (ISPs) in Nigeria are active, according to the Nigerian Communications Commission (NCC). This highlights significant challenges faced by many ISPs in the country.
Issues like anti-competition practices, low internet access in northern Nigeria due to security concerns, difficulties in securing Right of Way (RoW), multiple taxation, and a lack of standardised equipment have contributed to the low number of active providers. Many ISPs are also struggling with governance challenges, such as the absence of corporate codes of practice.
During the Telecoms Sector Sustainability Forum in Lagos, Engr. Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), pointed out the dominance of the big four telecom operators—MTN, Airtel, Glo, and 9mobile. These companies are both wholesalers and retailers, which makes it difficult for smaller ISPs to compete.
Adebayo expressed concern that if big operators continue to dominate both wholesale and retail services, smaller operators might be pushed out of business. He called on the NCC to enforce stricter regulations to ensure a fairer playing field.
Chidi Ajuzie, Chief Operating Officer of WTES Projects Ltd, added that the bigger ISPs have the financial strength to take over the business of smaller operators, leaving less than 200 active ISPs in Nigeria. He urged smaller ISPs to consider partnerships and other strategies to survive.
In response, NCC Executive Vice Chairman Prof. Umar Garba Danbatta, represented by Yomi Arowosafe, the NCC Zonal Controller for Lagos, assured stakeholders that the Commission is committed to addressing these challenges. He pointed to the National Policy on Digitalisation and the National Broadband Plan 2020-2025 as part of efforts to support the sector.
Danbatta emphasized that fair regulations, transparency, and openness are essential for creating a competitive environment where smaller ISPs can succeed. He stressed that a thriving ISP sector is crucial for Nigeria’s digital economy and global competitiveness.
The forum, organized by Business Remarks Limited, brought together industry stakeholders including NCC members, Skymax Integrated Network, IPNX, eStream Networks, WTES Projects, and others from the National Information Technology Development Agency (NITDA).
