The Federal Government has proposed a budgetary allocation of N420.97m for the NigComSat-2 Project in the 2026 fiscal year, signalling a scaled-down but sustained push to advance Nigeria’s next-generation satellite communications programme.

Details from the 2026 Appropriation Bill show that the allocation to Nigeria Communication Satellite Limited represents a decline from the N601.39m provided for the same project in the 2025 budget, translating to a year-on-year reduction of about N180.42m, or nearly 30 per cent.

Despite the cut, the project remains listed as ongoing, showing the government’s intention to keep the planned satellite replacement and expansion effort alive.

The NigComSat-2 Project forms part of Nigeria’s broader plan to replace the ageing NigComSat-1R satellite and expand national capacity for broadband, broadcasting, and secure communications.

The proposed satellite is expected to support services such as satellite broadband, direct-to-home broadcasting, rural connectivity, tele-education, and telemedicine, while also strengthening the country’s digital and security infrastructure.

According to the budget breakdown, Nigeria Communication Satellite Limited is proposed to receive a total allocation of N9.9bn in 2026, covering personnel, overhead, and capital expenditure.

Capital spending accounts for the bulk of the vote at N7.02bn, reflecting the infrastructure-heavy nature of satellite and ground systems development.

Within this capital envelope, the NigComSat-2 Project is one of several ongoing initiatives, alongside ground station upgrades, Ka-band service expansion, satellite control centre improvements, and rural broadband connectivity projects.

The year-on-year decline in funding for the NigComSat-2 Project suggests a cautious, phased approach by the Federal Government, possibly reflecting fiscal pressures and the decision to extend the operational life of the existing NigComSat-1R satellite through fuel and asset management.

While earlier plans had envisaged quicker deployment of a replacement satellite, officials have indicated that timelines have shifted, with replacement now expected later in the decade.

In the 2025 budget, the N601.39m allocation to the NigComSat-2 Project was intended to advance preparatory and technical groundwork, including design, integration planning, and engagement with potential technical partners.

The reduced 2026 provision points to a continuation of these preparatory activities rather than full-scale satellite construction or launch spending, which typically runs into hundreds of millions of dollars and would require separate financing arrangements, often involving public-private partnerships or external funding.

Beyond the NigComSat-2 line item, the 2026 budget also reflects the government’s wider strategy of leveraging satellite infrastructure to support digital inclusion.

Projects listed under the Nigeria Communication Satellite Limited vote include satellite broadband and rural connectivity, business and market expansion, human capital development for satellite management, and the establishment of community innovation digital hubs across the country.

The PUNCH earlier reported that the Federal Government approved the purchase of two new communication satellites to boost Nigeria’s digital infrastructure and support President Bola Tinubu’s plan to grow the economy to $1tn.

The Minister of Communications and Digital Economy, Mr Bosun Tijani, disclosed this in Abuja at a press conference to mark Global Privacy Day 2026, organised by the Nigerian Data Protection Commission.

He said, “As you know, Mr President has been very clear about his ambition to build a $1tn economy, and digital technology is central to achieving that vision.

“But I think most importantly, one that might come out to wrap your mind, that the president has now approved that we should procure two new satellites.

“Nigeria today is the only country in West Africa with communication satellites. And we have been given the go-ahead to procure two new ones, ensuring that we can use that satellite to connect.”