Economy

FG Allocates N421m for NigComSat-2 Project in 2026 Budget

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The Federal Government has proposed a budgetary allocation of N420.97 million for the NigComSat-2 Project in the 2026 fiscal year, signaling a continued but scaled-down commitment to Nigeria’s satellite communications programme.

The allocation, detailed in the 2026 Appropriation Bill, marks a reduction of nearly 30 per cent from the N601.39 million provided in 2025, reflecting fiscal caution while maintaining the project as ongoing. The NigComSat-2 initiative is part of Nigeria’s broader plan to replace the ageing NigComSat-1R satellite and expand national capacity for broadband, broadcasting, and secure communications.

The satellite is expected to enhance services including satellite broadband, direct-to-home broadcasting, rural connectivity, tele-education, and telemedicine, while strengthening Nigeria’s digital and security infrastructure.

The budget shows that Nigeria Communication Satellite Limited (NigComSat) is slated to receive N9.9 billion in total for 2026, covering personnel, overheads, and capital expenditure, with N7.02 billion earmarked for infrastructure-heavy capital projects. The NigComSat-2 allocation focuses on preparatory and technical activities, including design, integration planning, and engagement with potential technical partners, rather than full-scale construction or launch.

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Officials noted that timelines for the satellite replacement have shifted, with deployment expected later in the decade, while the operational life of NigComSat-1R is being extended through asset and fuel management.

The 2026 budget also highlights Nigeria’s wider digital strategy, including rural broadband expansion, satellite ground station upgrades, and community innovation hubs, aimed at boosting connectivity and supporting President Bola Tinubu’s ambition to grow the economy to $1 trillion.

Minister of Communications and Digital Economy, Bosun Tijani, recently confirmed the government’s approval to procure two new communication satellites, reinforcing Nigeria’s position as the only country in West Africa with national communication satellites.

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