Legend Internet is merging with Spectranet in a broadband consolidation play

Legend Internet Plc, Nigeria’s first publicly listed internet service provider, plans to merge with Spectranet, Nigeria’s largest ISP by subscribers, in a deal that signals a new wave of consolidation as competition intensifies in the broadband market.

The proposed transaction, disclosed in a regulatory filing to the Nigerian Exchange (NGX) on Monday, will see both companies combine their businesses under a unified corporate structure.

The deal is pending approval from the Federal Competition and Consumer Protection Commission (FCCPC) and the Nigerian Communications Commission (NCC), with completion targeted for Q2 2026.

The merger brings together two players that have long competed for the same urban broadband customers and signals that Nigeria’s internet service provider market may be entering a consolidation phase. 

With infrastructure costs rising, spectrum constraints tightening, and competition intensifying from MTN and Airtel’s home broadband arms, mid-tier ISPs face growing pressure to scale or get squeezed.

Legend’s board, which approved the transaction in October 2025 before shareholders ratified it in November, framed the deal in terms of network capacity and operational efficiency. 

“The proposed merger aligns with Legend’s long-term strategy to expand broadband infrastructure and strengthen its position within Nigeria’s telecommunications sector,” Legend said in the filing. “The Transaction is expected to deliver significant strategic and financial benefits, including enhanced network capacity through the integration of fibre and wireless infrastructure, improved operational efficiency, and expanded coverage across key urban markets.”

The combined entity would inherit Spectranet’s established brand recognition among home and SME broadband users alongside Legend’s listed status and infrastructure footprint.

The filing did not disclose the financial terms of the transaction, including the valuation or the structure of the share arrangement.

The deal also reflects broader shifts in Nigeria’s ISP market, where scale, network quality, and capital investment are becoming critical to survival. By merging with Spectranet, Legend is betting that consolidation can deliver the scale needed to compete more aggressively.

Spectranet, once a dominant force in Nigeria’s fixed wireless segment, enters the merger from a position of relative weakness. In 2025, its active subscriber base fell below 100,000 for the first time since the NCC began publishing ISP data. The company lost 3,732 users in the second quarter alone, marking its second consecutive quarterly decline.

That drop came amid intensifying competition from newer entrants and alternative technologies. Satellite internet provider Starlink, for instance, has recorded rapid growth, increasing its subscriber base significantly over the same period. Fibre-focused players like FibreOne are also expanding, putting additional pressure on legacy wireless operators.

Despite these challenges, Spectranet remains a significant player. As of late 2024, it controlled about 47.3% of Nigeria’s wireless ISP market and remained the largest ISP by subscriber count as of mid-2025. However, its lead has been narrowing, underscoring the urgency of strategic repositioning.

For Legend Internet, the merger could provide a faster route to scale than organic growth alone. The company, which listed on the NGX in April 2025 through a listing by introduction, has seen a volatile stock performance. 

After debuting at ₦5.64 per share and climbing to a high of ₦10.35 in May 2025, the stock fell to a low of ₦4.30 in September before beginning a recovery. As of March 23, 2026, Legend’s shares trade at around ₦6.00, giving it a market capitalisation of approximately ₦12 billion. The stock has gained about 13.4% year-to-date, suggesting a modest return of investor confidence following its post-listing swings.