$11.44m debt: China threatens to shut down Nigerian communications satellite

China threatens NCC

The China Great Wall Industry Corporation (CGWIC) has threatened to suspend operations of Nigeria’s communications satellite, NigComSat-1R, over an outstanding debt of $11.44 million accumulated over the past seven years.

China threatens NCC2

The company gave Nigerian Communications Satellite Limited (NigComSat) 30 days to settle the debt or provide a legally binding guarantee, failing which it warned it would shut down the satellite.

According to reports, the ultimatum was conveyed in a letter addressed to the Managing Director of NigComSat Ltd., and copied to President Bola Tinubu. The letter signed by Liu Lan, Director of Marketing, Africa at CGWIC, also urged NigComSat to inform its customers of the potential disruption, noting that the performance of the satellite could no longer be guaranteed without payment.

According to the letter, “As of December 31, 2025, the total net outstanding debt owed by NIGCOMSAT to CGWIC stands at USD 11,442,335.89. This figure accounts for deductions for services NIGCOMSAT has been provided by us, yet the balance remains substantial and unresolved. 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”.

CGWIC highlighted that it had deliberately delayed standard debt collection actions over the years to ensure continuity of Nigeria’s satellite operations. “For the past seven years, CGWIC has acted in goodwill to support Nigeria’s satellite operations. However, we are under immense pressure from internal auditors and sub-contractors, and we can no longer sustain these operations without remuneration”, the letter added.

The Chinese firm further explained that prior negotiations in 2023 and early 2025, which included partial debt forgiveness, were not honoured by NigComSat, prompting the issuance of the 30-day ultimatum. “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”, the letter warned.

Efforts to reach Stephen Kwande, Head of Corporate Communications at NigComSat Limited, for comment were unsuccessful at the time of filing  this report.

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