Nigeria’s telecommunications regulator, the Nigerian Communications Commission, NCC, has unveiled plans to deploy part of its Universal Service Provision Fund, USPF, to support satellite broadband operators.
The initiative aims to connect an estimated 23 million Nigerians who remain offline, as the country steps up efforts to close long-standing connectivity gaps in rural and hard-to-reach communities.
The Commission disclosed the strategy on Wednesday during its virtual presentation of the Q4 2025 Industry Performance Report, noting that satellite technologies, particularly Low Earth Orbit, LEO, systems, are becoming critical to achieving nationwide connectivity where traditional mobile networks face economic, geographic and security limitations.
Senior NCC officials said the commission intends to use the USPF to subsidise access in commercially unviable locations, ensuring that satellite broadband services remain affordable for rural and underserved populations, rather than being concentrated in urban centres.
“We encourage satellite operators to focus on areas where market forces alone cannot deliver affordable services,” the commission said, adding that USPF incentives would be tied strictly to coverage in unserved and underserved locations.
The move comes amid growing recognition of the limits of Nigeria’s terrestrial broadband expansion. While 4G and 5G deployments continue to increase, the NCC explained that the physics of spectrum, especially the mid-band frequencies used for 5G, results in smaller coverage footprints and significantly higher rollout costs outside densely populated urban areas.
In contrast, satellite broadband, particularly LEO systems, offers a complementary solution, 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. These discussions also include consultations on Direct-to-Device, D2D, services, which could allow mobile phones to connect directly to satellites in areas without terrestrial network coverage.
According to the regulator, the consultations are focused on efficient spectrum use, preventing market distortion, and determining whether certain satellite services should prioritise rural deployment or nationwide coverage.
The Universal Service Provision Fund, established under the Nigerian Communications Act (NCA) No. 19 of 2003 and administered by the NCC, is a federal government initiative designed to promote universal access to information and communication technologies.
The fund aims to bridge Nigeria’s digital divide through 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 targeting vulnerable groups.Related News
By extending support to satellite broadband, the NCC is positioning the USPF as a critical tool for ensuring that Nigeria’s remaining offline population is not excluded from the digital economy.
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 nationwide.
The NCC also urged media organisations to rely on published performance data and official reports when assessing coverage and technology adoption, cautioning against misinterpretation of metrics such as limited 5G subscriber samples. Officials said the commission remains open to clarification and continued engagement as Nigeria pursues its long-term broadband and digital inclusion targets.
With data consumption projected to triple by the end of the decade and subscriptions expected to rise further, regulators say satellite broadband, backed by targeted public funding, could play a decisive role in connecting Nigeria’s final and most difficult-to-reach communities.
