Tuesday , November 28 2023

FG to Earn N28 Billion fom Satellite Concession Deal

FG Satellite Concession Deal

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

This was disclosed 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 boost 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 would create over 10,000 direct and indirect jobs and generate over N28 billion within the 15-year concession period and help in the fight against insecurity, citing that would also mitigate the effect of climate change, aid in disaster relief, and improve healthcare services.

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

The Full Business Case Compliance Certificate for the project was issued by the director-general of ICRC, Michael Ohiani, to the Minister of 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 at the FBC presentation, apart from ensuring internet penetration to rural areas, the project will also create employment opportunities, generate revenues, improve fixed-broadband penetration and support the government’s fight against insecurity.

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

He stated that the concession also targets the deployment of over 7,000 Very Small Aperture Terminal (VSATs) all over Nigeria over 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 its proposed NIGCOMSAT 2 satellite.

The FG noted that the satellite (NIGCOMSAT 2) would backhaul the services of 5G once telecom operators deploy the fifth-generation network services. She also explained that backhauling means getting data to a point that could be distributed via the optic fibre or network.

Expectations of NIGCOMSAT 2:  Telcos 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 would keep working with other technology providers to deliver broadband services to all Nigerians.

About Bukola Olanrewaju

Check Also

Samsung Innovation Campus Unveils in Lagos

Samsung Innovation Campus Unveils in Lagos

Samsung Nigeria has announced the launch of Samsung Innovation Campus, in collaboration with the Lagos …

Leave a Reply

Your email address will not be published. Required fields are marked *