Nigeria has selected French aerospace company Thales Alenia Space and Israel Aerospace Industries (IAI) to build two new communications satellites as it prepares to replace its ageing NIGCOMSAT-1R.

The Federal Executive Council approved the acquisition and deployment of NIGCOMSAT-2A and NIGCOMSAT-2B on August 22, clearing the way for Nigeria Communications Satellite Limited (NIGCOMSAT) to advance a replacement programme that has been in development for more than two years.

The satellites are expected to increase capacity for broadband, broadcasting, enterprise connectivity and government services, particularly in areas where extending fibre and other terrestrial infrastructure is expensive or impractical.

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But the project comes with a more immediate deadline. NIGCOMSAT-1R, Nigeria's current communications satellite, was launched on December 19, 2011, with a 15-year design life. It is therefore reaching the end of its original operating period in 2026.

NIGCOMSAT says careful management of the satellite's onboard fuel will allow it to remain operational until 2028, giving the government additional time to finance, manufacture and launch its replacement.

The final cost of the new programme has not yet been disclosed. Although the FEC has approved the contract, financing is still being finalised.

Jane Nkechi Egerton-Idehen, NIGCOMSAT's managing director and chief executive, told TechCabal that the amount would be made public after the financing is completed.

“The amount will be official once the financing is closed,” Egerton-Idehen said. “That’s the stage that is ongoing now after the contract FEC approved. The funding is vendor-financed and backed by the Export-Import Banks.”

Under the arrangement, the vendors will provide financing backed by export-import banks. That matters because the cost of a communications satellite extends well beyond the spacecraft itself. Launch, insurance, ground infrastructure, control centres, testing and training are all part of the programme.

The selection of Thales Alenia Space and IAI follows a competitive procurement process that began with NIGCOMSAT defining its technical requirements in early 2024. The company issued an Expression of Interest in June that year.

Several international aerospace companies subsequently participated in the process, including Thales Alenia Space, Airbus, IAI, China Great Wall Industry Corporation and Turkish Aerospace Industries.

The winning companies will be responsible for delivering the satellites and associated infrastructure. The contract covers more than spacecraft manufacturing, including launch and in-orbit testing, satellite control centres, tracking and telemetry stations, simulators, operational software, documentation, insurance and technology transfer.

NIGCOMSAT-2A is planned for deployment at 42.5°E. The programme also includes backup ground infrastructure intended to make the satellite system more resilient.

The new satellites are not simply a replacement for NIGCOMSAT-1R. They are intended to increase the country's communications capacity and support broadband, broadcasting, enterprise and government services.

That could matter in parts of Nigeria where terrestrial infrastructure remains difficult to deploy.

Nigeria's broadband penetration stood at 56.7% in June, according to data from the Nigerian Communications Commission. Fibre and mobile networks remain the main infrastructure for delivering high-capacity connectivity, particularly in populated areas, but extending those networks into sparsely populated or difficult terrain can be costly.

Satellites offer a different proposition. A single spacecraft can cover a large geographic area without requiring the same network of physical infrastructure to be built on the ground.

That does not make satellite connectivity a substitute for fibre.

Instead, the value of NIGCOMSAT's new capacity will largely depend on where terrestrial networks cannot reach economically and whether operators can use the satellite infrastructure to serve those areas at a reasonable cost.

And capacity alone does not guarantee affordable internet.

The additional bandwidth will still have to be converted into services that households and businesses can afford. The cost of terminals, equipment, data plans and last-mile connections will determine how much of the new capacity actually reaches users.

That creates a gap between the technical ambition of the project and its eventual impact.

Nigeria could add substantial satellite capacity without significantly reducing its digital divide if the services built on that capacity remain too expensive for poorly connected communities.

NIGCOMSAT also expects the programme to contribute to the country's broader technology and space ecosystem. The project could create opportunities around satellite terminals, ground infrastructure, systems integration, technical support, telecommunications and broadcasting.

The technology-transfer component could be particularly important. Training under the contract is expected to cover space and ground-segment operations, potentially expanding local expertise in satellite engineering and network management.

For NIGCOMSAT, however, the ultimate test will be commercial as much as technical.

“NIGCOMSAT-2A and NIGCOMSAT-2B will strengthen our national satellite capacity, expand connectivity and support critical communications across the country,” Egerton-Idehen said. “Our priority is to translate this investment into measurable value for Nigerians and position NIGCOMSAT for stronger impact within the global satellite and digital economy.”

That translation will depend on demand.

NIGCOMSAT will need to attract sustained business from internet service providers, telecom operators, broadcasters, companies and government agencies if the additional capacity is to generate sufficient value. The satellites could also provide an alternative communications route when terrestrial networks are damaged or unavailable.

That resilience has uses beyond broadband, including emergency communications and some government operations.

For now, however, the project remains several steps away from becoming operational. Financing must be closed, followed by manufacturing, technical preparations, launch and in-orbit testing.

The expected 2028 operating horizon for NIGCOMSAT-1R gives the government some room, but not an unlimited amount.

The strategic argument for the new satellites is straightforward: Nigeria cannot economically extend fibre and mobile infrastructure to every community, and satellites can help cover some of the gaps.

Whether they make a meaningful difference will depend on what happens after the spacecraft leave the launchpad.

The real measure of NIGCOMSAT-2A and 2B will not be how much capacity Nigeria puts into orbit, but how much of that capacity becomes reliable and affordable connectivity on the ground.