The Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, has announced that Nigeria Communication Satellite Limited has achieved revenues twice that of its total for 2023 in just the first half of 2024.
This revelation came during a Twitter space titled Ministerial Engagement on National Issues on Thursday.
Highlighting the progress under President Bola Tinubu’s administration, Tijani emphasized that the Nigerian satellite, which had previously seen underutilization, is now generating substantial revenue.
Despite ongoing criticism regarding NIGCOMSAT’s historical revenue performance, the Minister pointed out a significant turnaround. Industry stakeholders have long criticized NIGCOMSAT for generating minimal revenue while consistently receiving substantial government funding. The 2024 federal budget has allocated N5.3 billion to NIGCOMSAT, up from N4.5 billion in 2023.
“Nigeria is the only country in West Africa with its own satellite, and until recently, it had not been fully utilized. However, this administration has ensured that it is now actively generating revenue,” Tijani stated. “The revenue from NIGCOMSAT has already exceeded what we generated last year, effectively doubling our earnings.”
The Minister also highlighted the satellite’s involvement in the government’s Project 774, aimed at connecting all 774 local governments in Nigeria to the internet.
According to recent reports, NIGCOMSAT is in the process of replacing its current satellite, NIGCOMSAT-1R, which is nearing the end of its 15-year lifespan in 2026. The satellite, launched on December 19, 2011, was a replacement for the failed NigComSat-1, which had been launched in 2007. The replacement satellite was financed through an insurance policy on the de-orbited NigComSat-1.
NIGCOMSAT-1R was designed to support communications, internet services, health, agriculture, environmental protection, and national security. It was expected to save Nigeria billions in foreign exchange by providing services to local telecom operators and broadcasters. However, uptake has been low, with many businesses continuing to rely on foreign satellite providers.
The ongoing effort to replace NIGCOMSAT-1R involves seeking global investors to support the project, ensuring that Nigeria remains at the forefront of satellite technology and utilization.
