Legend Internet Plc is moving to merge with Spectranet in a deal that could reshape Nigeria’s broadband market, as rising costs and tougher competition push internet service providers toward consolidation.
The proposed transaction, disclosed in a filing to the Nigerian Exchange on Monday, will see both companies combine under a single corporate structure. It is still subject to regulatory approvals from the Federal Competition and Consumer Protection Commission and the Nigerian Communications Commission, with completion expected in the second quarter of 2026.
The merger brings together two long-time rivals that have competed for the same urban broadband customers. It also signals a broader shift in the market, where mid-sized ISPs are increasingly under pressure to scale up or risk being squeezed out.
That pressure is coming from multiple directions. Infrastructure costs continue to rise, spectrum remains limited, and large telecom operators like MTN Nigeria and Airtel Nigeria are expanding aggressively into home broadband. For smaller players, growth is becoming harder to achieve without deeper investment or strategic partnerships.
Legend’s board approved the deal in October 2025, with shareholders giving their backing a month later. In its filing, the company said the merger aligns with its long-term strategy to expand broadband infrastructure and improve efficiency, pointing to expected gains in network capacity, wider coverage, and cost optimisation.
The combined business would pair Spectranet’s strong brand among home and small business users with Legend’s public listing and existing infrastructure. Financial details of the transaction, including valuation and share structure, were not disclosed.
For Spectranet, the deal comes at a critical moment. Once a dominant force in Nigeria’s fixed wireless segment, the company has been losing ground. Its subscriber base dropped below 100,000 in 2025, according to industry data, with losses recorded over consecutive quarters.
Competition has intensified, particularly from newer technologies. Satellite provider Starlink has grown rapidly, while fibre-focused operators like FibreOne are expanding their footprint, putting pressure on legacy wireless providers.
Despite the decline, Spectranet remains a significant player, having controlled nearly half of Nigeria’s wireless ISP market as recently as late 2024. But its shrinking lead highlights the urgency of repositioning in a fast-changing industry.
For Legend Internet, the merger offers a quicker path to scale than organic growth. The company, which listed on the Nigerian Exchange in April 2025, has experienced a volatile run on the market. After debuting at ₦5.64 per share and climbing to ₦10.35 in May, the stock later fell to ₦4.30 before recovering. As of March 23, 2026, shares trade at around ₦6.00, giving the company a market value of roughly ₦12 billion and reflecting a modest rebound in investor confidence.
