Nigeria picks French, Israeli firms for new satellites

French aerospace company Thales Alenia Space and Israel Aerospace Industries (IAI) have been selected to build Nigeria’s next communications satellites, as the government moves to expand broadband capacity and replace its ageing NIGCOMSAT-1R.

The selection follows Federal Executive Council (FEC) approval on August 22 for the acquisition and deployment of NIGCOMSAT-2A and NIGCOMSAT-2B, allowing Nigeria Communications Satellite Limited (NIGCOMSAT) to move its long-running satellite replacement programme into the next phase.

The two satellites are expected to provide additional capacity for broadband, broadcasting, enterprise connectivity and government services, particularly in areas where fibre and other terrestrial networks are too costly or difficult to deploy.

The timing is critical. NIGCOMSAT-1R, Nigeria’s current communications satellite, was launched on December 19, 2011, with a 15-year design life and is reaching the end of that period in 2026. NIGCOMSAT says careful management of its onboard fuel will allow the satellite to remain operational until 2028, giving the government a limited window to finance, build and launch its replacement.

Although the FEC has approved the contract, the project’s final cost has not yet been disclosed because financing is still being finalised.

Jane Nkechi Egerton-Idehen, managing director and CEO of NIGCOMSAT, told TechCabal in a statement that the final amount will be made public once the financing is closed.

“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.”

The financing structure means the satellite vendors will provide financing backed by export-import banks. This is significant because satellite projects require substantial upfront investment, not just for the spacecraft but also for launch, insurance, ground stations, control centres, testing, and training.

The selection of Thales Alenia Space and IAI comes after a competitive procurement process that began more than two years ago. NIGCOMSAT started defining the technical requirements in early 2024 and issued an Expression of Interest in June that year.

The procurement process advanced in 2025, with major international aerospace companies, including Thales Alenia Space, Airbus, IAI, China Great Wall Industry Corporation, and Turkish Aerospace Industries, participating.

The final selection assigns responsibility to the French and Israeli companies for delivering the two satellites and associated infrastructure.

The contract goes beyond manufacturing the spacecraft. It includes 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, and the project also includes backup ground infrastructure to improve the satellite system’s resilience.

The satellites are designed to do more than replace NIGCOMSAT-1R. They will add capacity for broadband, broadcasting, enterprise connectivity and government applications, with the potential to extend services to communities that terrestrial networks struggle to reach.

That matters because Nigeria’s broadband expansion— at 56.7% in June—increasingly depends on reaching areas where building fibre and other terrestrial infrastructure is commercially difficult.

Fibre remains the preferred option for high-capacity broadband, particularly in urban areas, but deploying cables across sparsely populated or difficult terrain can be expensive. Satellites can cover large areas without requiring the same physical infrastructure to be built on the ground.

The new satellites should therefore complement rather than replace Nigeria’s fibre and mobile networks. Their biggest value could come from filling coverage gaps where terrestrial infrastructure cannot be deployed economically.

NIGCOMSAT’s additional capacity could be used by internet service providers, mobile operators, broadcasters, businesses and government agencies. These organisations could use satellite links to extend services without having to build their own long-distance networks.

But more satellite capacity does not automatically mean cheaper or better internet for consumers.

NIGCOMSAT and its partners will still have to turn the additional capacity into services that households and businesses can afford. The cost of satellite terminals, equipment, data plans and last-mile connections will determine how much of the new capacity reaches end users.

That makes affordability as important as capacity. Nigeria could add significant satellite bandwidth without substantially closing its digital divide if the resulting services remain too expensive for the communities that need them most.

The project is also intended to strengthen Nigeria’s wider space and digital technology ecosystem. NIGCOMSAT expects opportunities in areas such as satellite terminals, ground infrastructure, systems integration, technical support, telecommunications and broadcasting.

Technology transfer and training could also help develop local expertise in satellite engineering, network operations and other specialised areas. The contract includes provisions for knowledge transfer, including training in space and ground-segment operations.

The objective for Egerton-Idehen is ultimately to turn the satellite investment into practical value for Nigeria.

“NIGCOMSAT-2A and NIGCOMSAT-2B will strengthen our national satellite capacity, expand connectivity and support critical communications across the country,” she 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 commercial question could prove as important as the technical one.

NIGCOMSAT is responsible for managing and commercialising Nigeria’s communications satellite assets. For the new satellites to deliver value, the additional capacity will need to attract sustained demand from telecom operators, ISPs, broadcasters, businesses and government agencies.

The satellites could also strengthen Nigeria’s communications resilience. They can provide an alternative when terrestrial networks are damaged or unavailable, reducing reliance on foreign satellite infrastructure for some critical services.

That has implications beyond broadband, including defence, emergency communications and other government operations.

The FEC approval and selection of the two contractors mark important milestones, but the project is not yet complete. Financing still needs to be closed, followed by manufacturing, technical preparations, launch and in-orbit testing.

The 2028 target gives NIGCOMSAT some breathing room because the company expects NIGCOMSAT-1R to remain operational until then. But it also sets a deadline to deliver the replacement before the existing satellite reaches the end of its extended operating life.

The strategic case for the new satellites is straightforward: fibre and mobile networks cannot economically reach every community, and satellites can help fill some of those gaps.

The harder question is whether Nigeria can turn the new capacity into affordable services at scale.

If it can, NIGCOMSAT-2A and 2B could become an important part of the country’s broadband infrastructure, particularly in rural areas and outside major cities. If it cannot, Nigeria could end up with more satellite capacity without making a meaningful difference to people and businesses that remain poorly connected.

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