Nigeria’s satellite company has doubled its revenue in 2024 – Bosun Tijani  

The Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, has said that the Nigeria Communication Satellite (NIGCOMSAT) Limited has generated times two of its full-year 2023 revenue in the first half of 2024. 

The Minister disclosed this on Thursday during a Twitter space tagged Ministerial Engagement on National Issues. 

While highlighting the achievements of President Bola Tinubu’s administration in the tech industry, Tijani declared that the Nigerian satellite, which had not been put to good use for years, is now actively generating revenue.  

Although the company’s revenue for 2023 has not been made public, industry stakeholders have for years berated NIGCOMSAT for generating little to nothing as revenue while it continues to receive huge allocations from the government coffers year in and year out.  

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.  

What the Minister is saying 

Suggesting that the Nigerian Communication Satellite, NIGCOMSAT-1R, is now being used efficiently, Tijani said:  

“Nigeria is the only country in West Africa with its own satellite. Historically and unfortunately, that satellite had not been put to good use. But this government is now putting it to good use.  

“In fact, the revenue that NIGCOMSAT generated from the use of our satellite is already more than what we generated last year. I think we have already doubled what we’ve generated in 2023.”  

According to him, aside from getting businesses to use it, the satellite is now playing 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.   

What you should know 

Nairametrics recently reported that the Nigerian satellite company has begun the process of replacing the country’s satellite, NIGCOMSAT-1R, and seeking investors from across the globe to support the project. This is because the country’s satellite launched in 2011 is set to complete its 15-year lifespan in 2026. 

Recall that 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.