NCC signals universal service fund to back satellite broadband for 23m offline Nigerians

Nigeria’s telecoms regulator has signalled plans to deploy part its Universal Service Provision Fund (USPF) to support satellite broadband operators in connecting an estimated 23 million Nigerians who remain offline, as the country intensifies efforts to close persistent gaps in rural and hard-to-reach areas.

The Nigerian Communications Commission (NCC) disclosed the strategy during the Nigerian Communications Commission’s virtual presentation session for the Q4 2025 Industry Performance Reports, on Wednesday, noting that satellite technologies, including Low Earth Orbit (LEO) systems are increasingly central to achieving nationwide connectivity where traditional mobile networks face economic, geographic and security constraints.

Senior NCC officials told BusinessDay that the Commission will use part of the fund to subsidise access in locations considered commercially unviable, ensuring that satellite services remain affordable for rural and underserved communities rather than concentrated in urban markets.

“We encourage satellite operators to focus on areas where market forces alone cannot deliver affordable services,” the commission said, noting that incentives from the USPF would be tied to coverage in unserved and underserved locations.

Satellites fill last-mile gap

The intervention comes as Nigeria grapples with the limitations of terrestrial broadband expansion. While 4G and 5G deployments continue to grow, officials said the physics of spectrum, particularly mid-band frequencies used for 5G, means coverage footprints remain smaller and rollout costs higher outside dense urban centres.

Satellite broadband, especially LEO systems, offers a complementary solution by enabling coverage across remote communities, highways and difficult terrain without the need for extensive ground infrastructure.

The NCC recently issued a landing permit to Amazon’s Project Kuiper and confirmed ongoing engagements with other satellite providers, including consultations on Direct-to-Device (D2D) services that could allow mobile phones to connect directly to satellites in areas without terrestrial coverage.

According to the regulator, consultations are focused on ensuring efficient spectrum use, preventing market distortion, and determining whether certain satellite services should prioritise rural or nationwide deployment.

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What the USPF does

The USPF is a federal government initiative established under the Nigerian Communications Act (NCA) No. 19 of 2003 and administered by the NCC to promote universal access to information and communication technologies.

The fund is designed to bridge Nigeria’s digital divide by providing subsidies, incentives and partnerships that support telecommunications and broadband deployment in rural, unserved and underserved communities.

Its interventions span infrastructure projects such as base stations, fibre optics and community resource centres, as well as digital inclusion programmes, including Digital Nigeria Centres, ICT skills training and initiatives targeted at vulnerable groups.

By extending support to satellite broadband, the NCC is positioning the fund as a key tool for ensuring that the country’s remaining offline population is not excluded from the digital economy.

Security, infrastructure risks persist

NCC officials acknowledged that insecurity, vandalism and fibre cuts continue to undermine network expansion, particularly in rural areas. Telecom infrastructure has been designated as Critical National Information Infrastructure (CNII) under a presidential order, with enforcement now underway in collaboration with security agencies to protect existing assets.

The commission said satellite solutions, combined with low-band spectrum refarming and stronger infrastructure protection, would help address persistent coverage gaps and improve service continuity.

Push for transparency, balanced reporting

The NCC also urged media organisations to rely on published performance data and official reports when assessing coverage and technology adoption, warning against misinterpretation of metrics such as limited 5G subscriber samples.

Officials said the commission remains open to clarifications and ongoing engagement as Nigeria works toward its long-term broadband and digital inclusion targets.

With data consumption projected to triple by the end of the decade and subscriptions expected to climb further, regulators say satellite broadband, backed by targeted public funding, could play a decisive role in ensuring that the country’s final connectivity frontier is reached.

Royal Ibeh is a senior journalist with years of experience reporting on Nigeria’s technology and health sectors. She currently covers the Technology and Health beats for BusinessDay newspaper, where she writes in-depth stories on digital innovation, telecom infrastructure, healthcare systems, and public health policies.

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