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The Nigerian government has begun discussions with its Chinese counterpart to obtain financing to construct two satellites at a total cost of $700 million.

According to the national satellite company – Nigerian Communications Satellite Limited (NIGCOMSAT) –, the Federal Ministry of Finance has begun negotiations with the China Export-Import Bank to obtain funding to construct NigComSat-2 and NigComSat-3.

“Following the successful launch of NigComSat-1R, two additional satellites, NigComSat-2 and NigComSat-3, are required to provide backup services, expand operations and boost customer confidence,” said Abdulrahman Adelajah, NIGCOMSAT’s General Manager, Satellite Applications, during a press briefing in Abuja on Wednesday.

“NigcomSat-2 is designed to cover Nigeria, Middle East, China and other Asian countries, whilst NigComSat-3 will cover Nigeria, and the South and North America,” Adelajah said.

He said with the three satellites in orbit, the Nigerian telecommunications industry can dominate the African market in a period of five years of the satellites being launched.

According to Adelajah, the two satellites would be built by Nigeria’s long-term technical partner, the China Great Wall Industry Corporation (CGWIC), which built and designed Nigeria’s first satellite – NigComSat 1 as well as NigComSat-1R.

The NigComSat 1 was launched in May 2007, but it was later deorbited in November 2008 after developing a power fault. NigComSat-1R was launched in December 2011 as a replacement.

NIGCOMSAT also announced on Wednesday that Nigeria won a contract to provide satellite technology services to Belarus for 15 years.

Speaking during a press briefing, Adamu Idris, NIGCOMSAT’s public affairs director, said the company will use its Abuja-based ground satellite facilities to provide In-Orbit Test (IOT) and Carrier Spectrum Monitoring (CSM) services for a Belarusian satellite known as Belintersat-1 Satellite.

“There are other operators who have over 20 years experience that bided with us but we were chosen ahead of them because we proved that we have the competencies to deliver having operated the NIGCOMSAT-1R successfully in the last four years,” Idris said.

Aside from Belarus, Nigeria also leases satellite transponders to Ghana, Gabon, and Cote d’Ivoire, Idris said.

Chibuike Oguh is Financial Nigeria's Frontier Markets Analyst