French aerospace company Thales Alenia Space and Israel Aerospace Industries (IAI) have been selected to build Nigeria’s next communications satellites, as the government moves to expand broadband capacity and replace its ageing NIGCOMSAT-1R.
The selection follows Federal Executive Council (FEC) approval on August 22 for the acquisition and deployment of NIGCOMSAT-2A and NIGCOMSAT-2B, allowing Nigeria Communications Satellite Limited (NIGCOMSAT) to move its long-running satellite replacement programme into the next phase.
The two satellites are expected to provide additional capacity for broadband, broadcasting, enterprise connectivity and government services, particularly in areas where fibre and other terrestrial networks are too costly or difficult to deploy.
The timing is critical. NIGCOMSAT-1R, Nigeria’s current communications satellite, was launched on December 19, 2011, with a 15-year design life and is reaching the end of that period in 2026. NIGCOMSAT says careful management of its onboard fuel will allow the satellite to remain operational until 2028, giving the government a limited window to finance, build and launch its replacement.
Although the FEC has approved the contract, the project’s final cost has not yet been disclosed because financing is still being finalised.
Jane Nkechi Egerton-Idehen, managing director and CEO of NIGCOMSAT, told TechCabal in a statement that the final amount will be made public once the financing is closed.
“The amount will be official once the financing is closed,” Egerton-Idehen said. “That’s the stage that is ongoing now after the contract FEC approved. The funding is vendor-financed and backed by the Export-Import Banks.”
The financing structure means the satellite vendors will provide financing backed by export-import banks. This is significant because satellite projects require substantial upfront investment, not just for the spacecraft but also for launch, insurance, ground stations, control centres, testing, and training.