FG to earn N28 billion from the satellite concession deal

FG to earn N28 billion from satellite concession deal

The Nigerian government has announced the concession of a Research and Development of Satellite Internet Broadband Project that will generate N28 billion over a 15-year period.

This is exposed by Manji Yarling, Acting Head, Media and Publicity, Infrastructure Concession Regulatory Commission (ICRC) in Abuja on Wednesday after the FEC approved the deal.

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

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

They added that it will create over 10,000 direct and indirect jobs and generate over N28 billion over the 15-year concession period and help fight against insecurity, citing that it will also reduce impact of climate change, disaster relief assistance, and development. health care services.

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

The Full Business Case Compliance Certificate for the project was issued by the director-general of the ICRC, Michael Ohiani, to the Minister of Science, Technology and Innovation, Dr. Adeleke Mamora.

Ohiani said the proposed concession will be done 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, apart from ensuring 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. .

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  • “In terms of broadband, we expect 10,000 direct and indirect jobs for the 15 years of the concession. The project will also bring an income of N28 billion to the country,” he added.

He stated that the concession also aims to deploy more than 7,000 Very Small Aperture Terminals (VSATs) across Nigeria in the next two years.

  • For the record: Nairametrics reported earlier that the Nigerian Communications Satellite Ltd. (NIGCOMSAT) has announced plans to deploy 5G technology in Nigeria through the proposed NIGCOMSAT 2 satellite.
  • The FG noted that the satellite (NIGCOMSAT 2) will backhaul 5G services once telecom operators deploy fifth generation network services. He also explained that backhauling means getting data to a point that can be distributed through optic fiber or network.

NIGCOMSAT 2 expectations:Telcos can use satellite to cover areas that cannot be reached by their 5G network. The federal government plans to provide 70% broadband by 2025 and NIGCOMSAT will continue to work with other technology providers to deliver broadband services to all Nigerians.


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