This Day (Lagos)

Nigeria: The Failed Nigcomsat

26 November 2008


editorial

Lagos — The news about the loss of the Nigerian Communication Satellite (NigComSat) in orbit, has once again, reminded Nigerians of some of the questionable investment decisions of the previous administration.

The satellite service launched into orbit in May 2007 at a whopping cost of N40 billion was done at a time, when many Nigerians didn't think it was a priority. For a country beset with even the most basic of infrastructural challenges and grinding poverty, the launch of a N40 billion satellite could hardly have been a priority. The opportunity cost was high!

Ever since the satellite disappeared from space, the nation has been awash with conjectures as to what could have caused the quick loss of the device. Experts have, however, said the failure of the solar panels in the satellite was because it was assembled by technological standards designed for Asia and not Africa. The satellite was built by Great Wall Industrial Corporation, China, after it signed the contract agreement with the National Space Research Agency in December 2004. Others say the device was not being maintained as it ought, thus causing its too-soon failure.

It is amazing that the government could invest as much as N40 billion into a project that did not have such an optimum benefit to Nigeria. The nation had been told by the promoters of the project that after its launch, the cost of telecommunication in Nigeria will be cut down drastically, and that it would help to create jobs, just as the nation will reap bountifully from the revenue the NigComSat will be generating. It was also claimed that the foreign transponders usually patronized by Nigerian firms at great cost, will now be provided by the nation's satellite service.

Ironically, the Satellite was launched at a time, when its usefulness in aiding telecommunication services was in a steady decline. Telecommunication technology is presently better enhanced by optic fibres, not satellite technology.

Although the satellite was supposed to provide bandwidth to facilitate telecommunication, NigComSat did not seem to know how to explore the emerging marketing monopoly it had in the industry. Rather it soon applied to Nigerian Communications Commission (NCC) to issue it another license for another service.

Until it disappeared, the NigComSat neither brought down the cost of telecommunication nor did it create the job opportunities it promised. Not even the huge revenue promised seemed achieved. From all fronts, therefore, the project, like all white elephant projects, has proven to be a monumental failure and a mindless waste of the nation's scarce resources.

It is bad enough that such a huge amount was wasted on a project with little value and primacy, yet it is worse that the project has come to complete naught too soon after. And that raises the next questions: did the Chinese firm build the satellite without any guarantee? Before the final disappearance of the device were there no warning signals? How did NigComSat respond to such signals, if any? How could it have failed so disastrously just about 18 months after? What is the standard elsewhere? What is the response of Great Wall Industrial Corporation, the builders of the satellite? And could the cost of the project not have been cheaper than we paid for?

It is against the backdrop of these questions that we therefore call on the Federal Government to institute a thorough enquiry into what actually happened to the satellite.

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Author: eb3p
Fri Nov 28 04:20:41 2008

Another example of thr works of that follish,illetrate, show-show. western tea boy called 0BASANJO. Now, he went on with the bakassi give away to french cameroun, for a $%0m beibe from FRANCE, abd as old as he is illetrate, ugly, he still cant retire he is now still passing around as some unelected UN SHOW MAN AROUND BLACK AFRICA ,OFFERING ADVICES HE DONT EVEN KNOW, THAT HE IS VERY NAIVE AND ILLETRATE.

Author: oluwakoredeasuni
Sat Jan 3 10:31:56 2009

That the project is white elephant in conception and implementation has been ascertained by non-delivery of project objectives up until the loss of the satellite from orbit. My concern is what happens to the opportunity window NIGCOMSAT could have occupied? Another is what role(s) are the staff of NIGCOMSAT playing now? I am willing to learn. Thank you


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