Only 106 Internet Service Providers (ISPs) are currently active, out of the 252 companies licensed as ISPs as of fourth quarter (Q4), 2023, the Nigerian Communications Commission, NCC’s data revealed.
NCC data showed the 106 ISPs had a total of 262,206 active customers, during the period under review.
However, when compared to the four mobile network operators in the nation’s internet customer base, this number is still relatively low. Recall that 163.8 million internet subscribers were in use as of December 2023 across MTN, Airtel, Globacom, and 9mobile.
A number of factors, including the high cost of operating in Nigeria, difficulties with right of way (RoW), low internet access in the country’s northern region due to security concerns, the completion of standardisation with state governments, and various taxes, were cited by stakeholders as reasons for the ISPs’ inactiveness.
For instance, ISPs made a total revenue of N92,079,251,596.26, spent N5,243,381,710.22, to acquire, upgrade, and maintain physical assets such as property, plants, buildings, technology, or equipment, with operating cost engulfing N71,200,884,440.55, according to the 2022 year end performance report.
WTES Projects Limited’s chief operating officer, Chidi Ajuzie, responded to this by saying that Nigerian ISPs are facing a significant survival challenge, even as he urged them to broaden their operations and search for additional opportunities for growth and profitability in addition to sustainability.
Highlighting some critical challenges faced by ISPs such as vandalisation, competition, tariffs, taxes and duties, power availability and cost, Ajuzie said this sub-sector needs regulatory support in terms of licensing issues, spectrum availability and price, inter-sector policies framework, Right of Way intervention, human security and safety at the plants.
“The past two years have been very challenging for the ISPs, with lots of damages done to infrastructures, particularly in Lagos state. Federal government needs to put out laws to enforce the protection of critical telecoms infrastructure. ISP’s business in Nigeria is viable but we need to watch out and look out for governmental support at the federal, state and local levels for enabling business environment”, he stressed.