Talks With China On Satellite Procurement Still On-Going – NigComSat
The loan, which is valued at USD 150 million, was meant to pay for a back-up satellite to strengthen the operations of NigComSat satellites.
Recent media reports claimed that the suspension might be due to the failure of all parties involved to reach a common consensus before the dissolution of the Federal Executive Council (FEC), which was given the mandate to consider the project with the former Minister of Communications, Adebayo Shittu, by Nigeria’s President Mohammadu Buhari.
The reports also speculated that the new minister was yet to receive a briefing on the matter.
Honourable Osagie has now publicly stated that discussions on the new satellites are still on-going with a number of satellite manufacturers including China.
On the issue of privatisation of the company, Osagie dismissed the rumours and said there is no such plan.
Before leaving the office, former Minister of Communications, Adebayo Shittu had stated that the contribution of the Chinese was not a loan, but would instead be used as equity.
Shittu explained that the initial proposition had been a loan, but because Nigeria couldn’t afford the 15 percent counterpart funding, both parties had decided to convert the loan to equity.
Credit: This article originated from www.africanews.space