Nigeria is to procure two new satellites from China valued at five hundred and fifty million dollars ($550m)
Minister of Communication, Adebayo Shittu made this known on Wednesday at the Presidential villa, Abuja, after a meeting with President Muhammadu Buhari.
He said the China EXIM Bank and the manufacturers would bear the full cost of producing the satellites.
The Minister said the satellites would be ready in two years time, adding that their availability would boost business activities within Nigeria and the entire African continent.
“I’m in the Presidency to see Mr. President and to brief him issues related to the activities of NigComSat, which is one of our agencies. We hope to procure two new satellites from China. Initially the agreement was that they will provide the cost of the two satellites $550m minus 15 percent which is the counterpart funding.
Because we could not afford this 15 percent, we have renegotiated with the China EXIM Bank and the China Great Walls who are the manufacturers and they have happily agreed to pay the entire $550 million to procure two new satellites, the two new ones will ensure that the Nigerian satellite company can conquer the entire African continent in regard to the provision of satellite communication services.
This is a very big business opportunity and I am sure that the Chinese appreciate the potential market which is so vast and that is why they have agreed that even without our ability to contribute 15 percent they are prepared to pay the entire sum of $550 million for the procurement of the two new satellites for Nigeria,” he explained.
“It is when we sign the papers that they will start production. We hope that before the end of this month we will sign the papers and then they will commence the production. It is after the completion of the production that the two satellites will be launched,” the Minister explained.
He added that the money to be spent by China on the procurement of the satellites was not a loan but rather, China’s equity.
“It is not a loan. It will be equity participation of the Chinese company into our business. NigComSat is a limited liability company owned entirely by the federal government. So they are paying that to finance these highly required facilities and we will agree on the percentage sharing. Of course, Nigeria has nothing to lose because we are not putting anything into it in terms of financial resources,” he said.
