FG to earn N28 billion from satellite concession deal

The Nigerian government has announced a grant for a Satellite Internet Broadband Research and Development Project that would generate Naira 28 billion over a period of 15 years.

This was revealed by Manji Yarling, Acting Director of Media and Publicity at the Infrastructure Concession Regulatory Commission (ICRC) in Abuja on Wednesday after the FEC approved the deal.

The project will also boost Nigeria’s fight against insecurity.

The ICRC noted that the project is owned by the National Agency for Space Research and Development, an agency of the Ministry of Science, Technology and Innovation under the supervision of the ICRC.

They added that it would create more than 10,000 direct and indirect jobs and generate more than N28 billion within the 15-year concession period and help in the fight against insecurity, citing that it would also mitigate the effect of climate change, help in disaster relief and improve health care services.

The news continues after this announcement.

  • “It will also help in technology transfer to Nigerians in the area of ​​communication equipment design and manufacturing.” he said.

ICRC Director General Michael Ohiani issued the Full Business Case Certificate of Compliance for the project to the Minister for Science, Technology and Innovation, Dr. Adeleke Mamora.

Ohiani said the proposed concession will be carried out using the Design, Finance, Build, Operate and Transfer (DFBOT) PPP model and the preferred bidder for the project is Messrs Gilat-Eleo Consortium (GO360).

According to Ohiani in the FBC presentation, in addition to guaranteeing internet penetration in rural areas, the project will also create employment opportunities, generate income, improve fixed broadband penetration and support the government’s fight against insecurity.

The news continues after this announcement.

  • “Regarding broadband, we expect 10,000 direct and indirect jobs for the 15 years of the concession. The project will also bring in revenue of N28 billion to the country.” added.

It stated that the concession also targets the deployment of more than 7,000 very small aperture terminals (VSATs) across Nigeria over the next two years.

  • For the record: Nairametry reported earlier than Nigerian Communications Satellite Ltd. (NIGCOMSAT) announced plans to deploy 5G technology in Nigeria via its proposed NIGCOMSAT 2 satellite.
  • The FG noted that the satellite (NIGCOMSAT 2) would connect 5G services once telecom operators implement fifth-generation network services. He also explained that backhauling means getting data to a point that could be distributed over fiber optics or the network.

Expectations from NIGCOMSAT 2:Telecommunications companies will be able to use the satellite to cover areas where their 5G network cannot reach. The federal government plans to provide 70% broadband by 2025 and NIGCOMSAT will continue to work with other technology providers to provide broadband services to all Nigerians.

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