The Nigerian Minister of Communications, Innovation, and Digital Economy, Dr Bosun Tijani, has said that the Nigeria Communication Satellite (NIGCOMSAT) Limited has generated twice its full-year 2023 revenue in the first six months of 2024.
Dr Bosun, the Minister, disclosed this on Thursday during a Twitter space tagged Ministerial Engagement on National Issues.
In addition to praising the Nigerian President Bola Tinubu’s administration’s accomplishments in the technology sector, Tijani said that the Nigerian satellite, which had been idle for years, was now actively making money
Although the company’s 2023 income has not been disclosed, industry participants have long criticised NIGCOMSAT for producing little to no revenue while consistently receiving large sums from government coffers.
In the approved 2024 federal government budget, the sum of N5.3 billion was allocated to NIGCOMSAT, slightly higher than the N4.5 billion it received in 2023
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Project 774 Connects Local Governments to the Internet
Tijani stated that Nigeria’s communication satellite, NIGCOMSAT-1R, is now being utilised efficiently, generating more revenue than in previous years.
He noted that Nigeria is the only West African country with its satellite and that the current government has made significant progress in harnessing its potential, with revenue from the satellite already doubling what was generated in 2023.
According to his statement, aside from getting businesses to use it, the satellite is now playing a significant role in the government’s ongoing Project 774, through which it wants to connect all the 774 local governments in the country to the Internet.
Nigeria Seeks International Partners to Replace Ageing NIGCOMSAT-1R Satellite
According to reports, the Nigerian space agency has started looking for international partners to help fund the project to replace NIGCOMSAT-1R, the nation’s satellite. This is because the nation’s 2011-launched satellite will eventually finish its 15-year mission in 2026.
Note that on March 24, 2009, a contract for the in-orbit delivery of the NigComSat-1R satellite was signed by the China Great Wall Industry Corporation (CGWIC) and the Nigerian Federal Ministry of Science and Technology (NGGCOMSAT, Limited). The unsuccessful NigComSat-1, which was launched on May 13, 2007, was replaced by it.
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Furthermore, 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 communications, internet services, health, agriculture, environmental protection, and national security before completing its 15-year lifespan.
The satellite was launched with the expectation that it would provide service for Nigerian broadcast stations and telecom operators, saving the country billions of foreign cash. However, because the majority of Nigerian enterprises still rely on foreign satellite operators, the satellite has been used relatively little.