Nigeria’s minister of communications technology has confirmed that the country’s satellite operator NigComSat will be privatised by 2018. Dr Omobola Johnson said that before the company was privatised, she wanted a transitional phase to improve its…
Nigeria’s minister of communications technology has confirmed that the country’s satellite operator NigComSat will be privatised by 2018.
Dr Omobola Johnson said that before the company was privatised, she wanted a transitional phase to improve its revenues so it can become a more viable venture. Johnson said that the priority for NigComSat in the first quarter of 2015 was to lease its 8 Ka-band transponders to business customers.
Johnson made the disclosure at an event in Lagos on 29 January and her comments were widely-reported in the local press, ending months of speculation as to whether or not the company would be taken private.
NigComSat currently operates one satellite, Chinese-built NigComSat-1R, which was launched in 2011 and has 28 transponders (4 C-, 14 Ku-, 8 Ka- and 2 L-band transponders).
In December the operator’s managing director, Abimbola Alale, told the government that NigComSat’s ground infrastructure in Abuja and China was worth US$1bn and, if it was to be privatised, would be more attractive to investors if the state invested further in its operations, including a new satellite.
She added that if the government chooses to increase commercialisation efforts through additional critical infrastructure investment, then it will optimise NigComSat’s ability to generate revenue and improve its financial profile to attract investors.
NigComSat-1R beams over Africa, Europe and Asia.