Legend Internet and Spectranet to Merge by Mid-Year

Two of Nigeria’s prominent broadband providers are set to become one. Legend Internet Plc announced on Monday that it has entered a merger agreement with Spectranet Limited, with the combined entity expected to form Nigeria’s largest internet service provider by subscriber base.

The deal was disclosed in a regulatory filing to the Nigerian Exchange Limited, signed by Legend’s Company Secretary, Erinma Onuoma. The merger was approved by Legend’s board on 3rd October 2025 and by shareholders on 7th November 2025. It now awaits regulatory sign-off from the Nigerian Communications Commission and the Federal Competition and Consumer Protection Commission, with completion targeted for the second quarter of 2026.

The transaction will combine Legend’s fibre-to-the-home network with Spectranet’s 4G LTE and fibre services, with both companies operating under a single corporate structure going forward. Financial terms, including the deal’s valuation and share arrangement, were not disclosed in the filing.

Dr. Ladi Bada, Chairman of Legend Internet, outlined the board’s expectations from the deal.

“With a stronger capital base and improved infrastructure, we are now well positioned to invest in next-generation technologies, expand into new markets, and deliver a full range of digital services. This moves us closer to our ambition of building a nationwide, future-ready digital infrastructure platform that will drive Nigeria’s economic and technological advancement,” he said.

Aisha Abdulaziz, CEO of Legend Internet, described the announcement as a turning point for the industry.

“This marks a pivotal moment for Nigeria’s broadband industry. Our merger with Spectranet positions us to build a future-ready digital platform that delivers world-class connectivity to Nigerians while creating sustained value for our shareholders,” she said.

Two Companies Under Pressure, One Shared Gamble

The merger is as much about survival as it is about ambition. Legend posted a net loss of ₦14.8 million for the quarter ended 31st October 2025, reversing a ₦94.5 million profit recorded in the same period a year earlier. Revenue also fell 17 per cent to ₦258.3 million from ₦309.7 million, driven largely by a decline in Legend Fibre sales. Operating performance swung to a loss of ₦20.9 million before interest and tax, against a ₦95.4 million profit in the prior period.

Spectranet, meanwhile, faces its own pressures. As of mid-2025, it controlled roughly 47.3 per cent of Nigeria’s wireless ISP market and remained the largest ISP by subscriber count. However, that lead has been narrowing steadily. Active customers fell from 103,252 in the first quarter of 2025 to 99,520 in the second quarter — a second consecutive decline. Elon Musk’s Starlink was closing in at 66,523 subscribers, with industry observers projecting it could overtake Spectranet within the year if current trends continue.

Both companies also operate in a market that has grown more hostile. High bandwidth costs, expensive rights-of-way, spectrum charges, and licence renewal fees continue to squeeze margins across the sector. The rollout of 5G by MTN and Airtel adds further competitive pressure, as does the aggressive expansion of fibre home broadband products from the telcos.

Legend’s shares trade at around ₦6.00 as of Monday, giving the company a market capitalisation of approximately ₦12 billion. The stock has gained roughly 13.4 per cent year-to-date, suggesting some investor confidence in the merger’s potential upside.

Legend confirmed it will provide further updates on operational structure and strategic developments as the regulatory process advances.