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Nairametrics
Home Sectors

Nigeria seeks global investors to replace its satellite as NIGCOMSAT-1R nears expiration 

Samson Akintaro by Samson Akintaro
July 15, 2024
in Sectors, Tech News
Oronsaye report: FG may soon sell majority shares in NigComSat
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The Nigerian Communications Satellite Limited (NIGCOMSAT) said it has now begun the process of replacing the country’s satellite, NIGCOMSAT-1R, and seeking investors from across the globe to support the project. 

This comes as the country’s satellite launched in 2011 is set to complete its 15-year lifespan in 2026.

The Managing Director of NIGCOMSAT, Mrs. Jane Nkechi Egerton-Idehen, announced the replacement moves on Sunday. 

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“You already know that Nigeria has a satellite in space, which has been operational since December 2011.

As it nears the end of its life, we are taking proactive steps to ensure a timely replacement and have officially begun the process of replacing the existing NIGCOMSAT-1R.  

“Now, we are calling for collaborators and investors to ensure the successful execution of this project,” she said in a LinkedIn post. 

Global community notified 

Egerton-Idehen said the call for expression of interest has been published in the Global Satellite Operator’s Association newsletter, to seek participation from global investors. 

A look at the published announcement in the Association’s newsletter showed that the country is planning to launch two satellites, NIGCOMSAT 2 and 3.  

“NIGCOMSAT has announced a crucial milestone in its mission to enhance satellite communications with the development of NIGCOMSAT 2 & 3.  

“The organization is calling for international collaborators and investors who share their vision to support this pivotal mission. This endeavour not only represents a leap forward for NIGCOMSAT but also holds the promise of transforming connectivity on a regional and global scale,” the announcement read.  

Past moves to replace the satellite 

Before his exit in 2019, one of the former Ministers of Communications, Barrister Adebayo Shittu, had insisted that Nigeria needed two new satellites to act as a backup for the current one. He had announced plans to approach China-Exim Bank to secure a loan of $550 million for the purpose. 

This, however, met stiff resistance from stakeholders, who argued that the current satellite operated by the country has been a wasted investment as it was not profitable and being underutilized. 

In 2021, former of NIGCOMSAT, Dr. Abimbola Alale, also announced at a stakeholder forum that the company was about to acquire two more satellites.  

“l am pleased to inform stakeholders of our desire to acquire more satellites between now and 2025 with the NigComSat-2 (Hight Throughput Satellite) due for launch in 2023 while NigComSat-3 will be launched in 2025,” she said at the time.  

Legal Adviser and Company Secretary of the company at that time, Alma Okpalefe, added that the planned launch of the two satellites in 2023 and 2025, would help NIGCOMSAT meet its mandate to commercialize satellite resources in the country and provide quality and cheap satellite services to Nigerians. These plans, however, did not see the light of the day. 

What you should know 

On March 24, 2009, the Nigerian Federal Ministry of Science and Technology, NIGCOMSAT, Limited, and China Great Wall Industry Corporation, CGWIC, signed a contract for the in-orbit delivery of the NigComSat-1R satellite. It was a replacement for the failed NigComSat-1 which was launched on May 13, 2007. 

  • Subsequently, on December 19, 2011, NigComSat-1R, paid for with the insurance policy on the de-orbited NigComSat-1 according to former President Goodluck Jonathan, was successfully launched into orbit by China in Xichang.  
  • The satellite was designed to function in the areas of communications, internet services, health, agriculture, environmental protection, and national security before completing its 15-year lifespan. 
  • The satellite was launched with the hope that it would save Nigeria billions in foreign exchange by providing service for Nigerian telecom operators and broadcast stations.  
  • However, patronage of the satellite has been very low as most businesses in Nigeria are still relying on foreign satellite providers. 

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Tags: CGWICJane Nkechi Egerton-IdehenNigComSat-1R
Samson Akintaro

Samson Akintaro

Samson Akintaro is a tech enthusiast and has over a decade experience covering and writing about the tech industry. He is currently the Tech Analyst at Nairametrics.

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