Nigeria’s president Muhammadu Buhari has been updated about the approved procurement of two new satellites from China.

The news satellites are worth 550million dollars, but Nigeria is not paying for it.

According to Minister of Communication, Adebayo Shittu, the China EXIM bank had agreed to pay the entire 550million dollars for the procurement of the satellites.

The minister explained that the initial agreement was that the China EXIM bank would provide 85 per cent of the total cost ($550 million) while Nigeria would pay the remaining 15 per cent as counterpart funding for the projects.

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He, however, stated that as Nigeria could not be able to meet her obligation in paying the counterpart funding, the agreement was renegotiated with the China EXIM bank and the manufacture of the satellites, the China Great Walls.

“Initially, the agreement was that they will provide the cost of the two satellites 550 million dollars minus 15 per cent which is the counterpart funding.

“Because we could not afford this 15 percent, we have renegotiated with the China EXIM Bank and the China Great Walls who are the manufacturers and they have happily agreed to pay the entire $550 million to procure two new satellites,” he said.

The minister stated that the new satellites would ensure that the Nigerian satellite company (NICOMSAT) would conquer the entire African continent in regard to the provision of satellite communication services.

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