Two Chinese firms that are into satellite manufacturing, China EXIM Bank and China Great Walls, have agreed with the Government of the Federal Republic of Nigeria to procure two satellites.
According to the Minister of Communication, Mr. Adebayo Shittu, who disclosed this to State House correspondents, after meeting with President Muhammadu Buhari at the Presidential Villa, Abuja.
The minister said: “I am in the Presidency to see Mr. President and to brief him on some major issues On NigComSat, which is one of our agencies where we hope to procure two new satellites from China.
“Initially, the agreement was that they will provide the cost of the two satellites at $550 million minus 15 per cent, which is the counterpart funding.
“Because we could not afford the 15 per cent, we have renegotiated with China EXIM Bank and China Great Walls, which are the manufacturers and they have agreed to pay the entire $550 million to procure two new satellites. The two new ones will ensure that the Nigerian satellite company which is NigCOMSAT can conquer the entire African continent with 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.”
The Minister also said it will take two years to procure the satellite and launch.
“It will take two years to produce because 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 at the completion of the production that the two satellites will be launched" said Mr Shitu.
He explained that the money was an equity participation of Chinese company in the nation’s business.
NigComSat is a limited liability company owned entirely by the Federal Republic of Nigeria.
Recall that Nigeria already have NigComSat1 in space, the advent of the proposed NigComSat2 and NigComSat3 will leave the entire Africa covered from the geostationary orbit.
According to the Minister of Communication, Mr. Adebayo Shittu, who disclosed this to State House correspondents, after meeting with President Muhammadu Buhari at the Presidential Villa, Abuja.
The minister said: “I am in the Presidency to see Mr. President and to brief him on some major issues On NigComSat, which is one of our agencies where we hope to procure two new satellites from China.
“Initially, the agreement was that they will provide the cost of the two satellites at $550 million minus 15 per cent, which is the counterpart funding.
“Because we could not afford the 15 per cent, we have renegotiated with China EXIM Bank and China Great Walls, which are the manufacturers and they have agreed to pay the entire $550 million to procure two new satellites. The two new ones will ensure that the Nigerian satellite company which is NigCOMSAT can conquer the entire African continent with 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.”
The Minister also said it will take two years to procure the satellite and launch.
“It will take two years to produce because 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 at the completion of the production that the two satellites will be launched" said Mr Shitu.
He explained that the money was an equity participation of Chinese company in the nation’s business.
NigComSat is a limited liability company owned entirely by the Federal Republic of Nigeria.
Recall that Nigeria already have NigComSat1 in space, the advent of the proposed NigComSat2 and NigComSat3 will leave the entire Africa covered from the geostationary orbit.
.jpg)
Posts
