Nigeria’s state-owned satellite operator has reported a sharp rise in earnings, even as an unresolved multimillion-dollar debt to its Chinese technical partner puts the country’s only working communications satellite under threat.
The Nigerian Communications Satellite Limited (NigComSat) recorded revenue of approximately N2.2 billion (US$1.6 million) in 2025, up from N650 million (US$470,854) in 2024, according to Managing Director and Chief Executive Nkechi Jane Egerton-Idehen, who disclosed the figures at a press briefing in Lagos on Friday.
Egerton-Idehen described the growth as part of a deliberate commercial strategy rather than an isolated result, targeting N8 billion in revenue as broadband services expand. Broadcasting currently accounts for more than half of NigComSat’s earnings, with the company providing satellite capacity to over half of Nigeria’s licensed broadcasters.
The improved revenue performance, however, sits against a significant operational threat. China Great Wall Industry Corporation (CGWIC) has issued a 30-day ultimatum over an outstanding debt of US$11,442,335.89 as of December 31, 2025, warning that it can no longer guarantee satellite performance without payment or a legally binding commitment to settle the arrears.
CGWIC has held primary control of the NigComSat-1R satellite from its ground station in Kashi, China, since 2019, after Nigeria’s own ground control facility was damaged. Despite providing essential Telemetry, Tracking and Command services continuously since then, it has received no payments from NigComSat in over seven years.
The letter, signed by Liu Lan, Director of Marketing for Africa at CGWIC, warned that failure to settle the debt or provide a legally binding payment guarantee could lead to the suspension of satellite operations, with active transponders potentially deactivated. NigComSat has publicly disputed the characterisation of the situation as a crisis.
NigComSat-1R was launched in 2011 with an original 15-year lifespan and is scheduled to reach the end of its design life this year, though the federal government has approved an operational extension to 2028. The government has also approved the procurement of two replacement satellites, designated NigComSat-2A and NigComSat-2B, for launch in 2028 and 2029 respectively. The two new satellites are estimated to cost approximately US$500 million, though funding pressures remain, with the 2026 budget allocation for the NigComSat-2 project reportedly reduced by 30 percent.
Beyond broadcasting, NigComSat is targeting broadband connectivity as its primary growth engine, particularly cellular backhaul in rural areas where fibre infrastructure is not commercially viable. State governments in Adamawa, Gombe, Cross River, and Imo are already among its clients. The satellite also supports Nigeria’s defence and security operations, providing communications for military assets in areas without terrestrial network coverage.
Analysts note that NigComSat’s dual strategy of growing infrastructure while rebuilding commercial relationships could help it avoid the risk of building capacity without sufficient demand, a recurring challenge in Africa’s satellite sector. Whether the debt standoff with CGWIC can be resolved before it disrupts services will be the more immediate test of the company’s recovery.
