Nigeria’s national communications satellite could face an unexpected shutdown after a Chinese company issued a strong warning over unpaid debts. The development has raised concerns about the future of the country’s satellite communications infrastructure.
The China Great Wall Industry Corporation (CGWIC), which built and maintains the Nigerian satellite, has reportedly given the Nigerian Communications Satellite Limited a strict 30-day deadline. The company warned that failure to settle an outstanding NigComSat debt crisis of $11.44 million may lead to the suspension of services.
The warning was contained in a formal letter addressed to the Managing Director of NigComSat Limited. The letter was also copied to the President of the Federal Republic of Nigeria.
According to the letter, the debt accumulated over the past seven years. The Chinese firm explained that it had continued providing critical services despite not receiving payment since 2019.
In the letter signed by Liu Lan, Director of Marketing for Africa at CGWIC, the company detailed the exact amount owed.
“As of December 31, 2025, the total net outstanding debt owed by NIGCOMSAT to CGWIC stands at USD11,442,335.89. This figure accounts for deductions for services NIGCOMSAT has been provided by us, yet the balance remains substantial and unresolved.”
The company also stated that it had repeatedly delayed taking strict debt recovery actions.
“For the past seven years, CGWIC has deliberately delayed standard debt collection actions out of goodwill and a desire to ensure the continuity of Nigeria’s satellite operations.”
However, the Chinese firm said it could no longer continue operating under the current conditions. Internal financial pressure has reportedly increased, forcing the company to take a firm position. The letter warned that the situation could soon affect the satellite’s performance if the issue remains unresolved.
“Regrettably, despite our continuous provision of essential Telemetry, Tracking, and Command (TT&C) services from Kashi, China, no payments have been received from NIGCOMSAT Ltd. since 2019.”
Moreover, the company revealed that negotiations held in 2023 and early 2025 did not produce results.
“Furthermore, despite negotiations in 2023 and early 2025, in which CGWIC agreed in principle to reduce the debt, NIGCOMSAT has repeatedly failed to meet the agreed-upon conditions to make partial payments.”
Consequently, the Chinese company issued what it described as a final ultimatum.
“Therefore, CGWIC is hereby issuing a final thirty (30) day ultimatum. NIGCOMSAT is required to either make the payment of USD 11,442,335.89 or provide a formal, legally binding guarantee of payment within thirty (30) days of the date of this letter.”
The company also warned that serious actions would follow if the deadline passes without payment.
“If full payment or an acceptable guarantee is not provided within this 30-day window, CGWIC will suspend service on the active transponders of the NIGCOMSAT-1R satellite.”
Interestingly, investigations revealed that the Chinese company had previously helped prevent a collapse of the satellite. In 2019, CGWIC reportedly rescued NigComSat-1R from operational failure while it was in orbit.
After the rescue, a management contract was entered into with NigComSat Limited to maintain satellite operations.
However, the current NigComSat debt crisis now threatens the stability of the satellite system. Meanwhile, NigComSat officials have not yet issued a full response to the allegations.
The Head of Corporate Communications at NigComSat Limited, Stephen Kwande, said a response would be provided. However, as of the time this report was filed, no official statement had been released.
