Amanze Chinonye
The Defence Industries Corporation of Nigeria (DICON) has entered into a Memorandum of Understanding (MoU) with Terra Industries to establish a Joint Venture Company (JVC) aimed at strengthening Nigeria’s sovereign defence production and expanding indigenous high-technology capacity, Prime Business Africa reports.
The agreement, executed under the DICON Act 2023, provides for the creation of a jointly owned company that will operate as a subsidiary of DICON. The initiative is designed to localise the production and development of advanced security systems while deepening Nigeria’s defence industrial base.
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Under the terms of the MoU, the joint venture will focus on the local assembly, manufacturing, research and development (R&D), and training in high-technology systems, including drones, robotics platforms, cybersecurity infrastructure, and associated software and hardware solutions.
Officials say the partnership will establish advanced production and assembly lines within Nigeria, while promoting meaningful technology transfer and specialised training programmes for Nigerian personnel. It is also expected to strengthen local sourcing of raw materials and components, reduce dependence on imports, and enhance domestic industrial capacity.
Terra Industries will provide technical expertise, professional services, and access to manufacturing know-how. The company is expected to coordinate local and international training initiatives, facilitate the procurement of specialised production equipment, integrate defence-sector supply chains, and help attract both domestic and foreign investment into the venture.
Strategic Context and Industry Impact
Director-General of DICON, Major General B.I. Alaya, described the agreement as “a transformational step toward strengthening Nigeria’s defence manufacturing base, reducing import dependence, and positioning Nigeria as a regional hub for advanced innovation.”
Nathaniel Nwachukwu, Chief Executive Officer of Terra Industries, said the partnership “demonstrates confidence in indigenous Nigerian engineering capability and creates a platform for sustainable defence technology development, innovation, and export competitiveness.”
The collaboration comes amid ongoing security challenges nationwide. A 2024 policy brief by the Nigerian Institute of Social and Economic Research (NISER) noted that despite progress by security agencies, operational gaps remain.
Since the enactment of the DICON Act 2023, the corporation has pursued technical alliances to modernise its facilities, including partnerships with Homeland Protectors and Supplies Limited and the UNICCON Group of Companies to support local drone and advanced systems development.
While details on capital commitments and production timelines for the Terra joint venture have not been disclosed, officials say the initiative is expected to expand research capabilities, create skilled employment opportunities, and position Nigeria as a competitive player in regional high-technology defence manufacturing.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
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