China EXIM Bank and satellite manufacturer, China Great Wall has agreed to pay $550 million for the procurement of two satellites for Nigeria.
The two satellites when acquired will ensure that the Nigerian Communications Satellite limited (NIGCOMSAT) will be able to get the best of the entire African continent with regard to the provision of satellite communication services, as disclosed by Adebayo Shittu, the minister of communication.
Although in an earlier deal by the two countries, Nigeria was required to cover fifteen percent of the cost, its inability to afford it led to renegotiation and as a result China agreed to pay the entire $550 million for the procurement of the two new satellites for Nigeria.
The funds granted to Nigeria were not as loan but the Chinese company will take an equity stake in Nigerian Communications Satellite (NIGCOMSAT), a limited liability company owned by the Nigerian government which is responsible for managing satellite communications.
China is also going to help Nigeria market satellite communication services to other African countries which would compete with current providers from Israel, Britain and the United States.
According to Adebayo Shittu, the Nigeria government intends to make profit from the satellites, with plans to capture the local market and then the African market at large.
