THE Defence Industries Corporation of Nigeria (DICON) has entered into a landmark $2 billion joint venture agreement with SP Offshore Nigeria Limited, aimed at reviving Nigeria’s defence industrial base and drastically reducing the nation’s reliance on imported military hardware.
The deal was signed on Wednesday in Kaduna, marking a significant milestone in the Federal Government’s effort to reposition the country as self-sufficient in military production by 2027, a vision clearly articulated in the recently signed DICON Act 2023.
According to Major General Babatunde Ibrahim Alaya, the Director General of DICON, the joint venture is a “transformative step” towards building a sustainable, indigenous defence ecosystem that will not only serve the needs of Nigeria’s armed forces and security agencies, but also create jobs, drive innovation, and stimulate exports across Africa.
“The historic partnership marks a transformative step towards achieving Nigeria’s vision of a robust military-industrial complex,” said Gen. Alaya.
He disclosed this in a statement issued by Lieutenant Colonel Haruna Sani, DICON’s Deputy Director of Public Information and Media.
Under the new agreement, DICON and SP Offshore will collaborate to manufacture a wide range of defence equipment locally, including small arms, ammunition, drones, biometric systems, radar technologies, and advanced surveillance gear.
The project will involve the establishment of state-of-the-art production and assembly facilities across Nigeria, ensuring that the country is equipped to meet both domestic and regional security needs.
Gen. Alaya emphasized that SP Offshore’s global expertise and access to foreign investment, when paired with DICON’s existing infrastructure and legacy, will provide a powerful platform to build world-class military technology on Nigerian soil.
“This partnership will enhance Nigeria’s military capabilities, strengthen internal security, and position us as a net exporter of defence technology across the region,” he added.
Alaya also praised President Bola Ahmed Tinubu for the foresight and political will demonstrated through the passage of the DICON Act 2023, which enables the Corporation to enter public-private partnerships to fast-track its operational objectives.
“This strategic direction from the President is the bedrock of today’s agreement,” Alaya stated, while also acknowledging the continuous backing of the Ministers of Defence, the Chief of Defence Staff (CDS), and the Service Chiefs.
Speaking at the event, Mr. Obafemi Adekunle, Group CEO of SP Offshore Nigeria Limited, affirmed the company’s commitment to transforming Nigeria’s defence manufacturing landscape.
“We are not just signing a deal; we are committing to long-term investment in Nigeria’s future. This joint venture will establish assembly lines and manufacturing hubs for next-generation defence systems right here in Nigeria,” Adekunle stated.
He disclosed that the firm’s cutting-edge technologies ranging from autonomous drones and high-precision weaponry to biometric ID systems and surveillance networks would be locally adapted and built to meet the unique needs of Nigeria’s armed forces.
Adekunle added that beyond technology transfer, the partnership would focus on capacity building, job creation, and export-oriented production, thus boosting Nigeria’s global competitiveness in the defence sector.
Industry observers say the agreement is a strategic move that could make Nigeria the primary defence production hub in West Africa, offering scalable solutions to neighbouring countries grappling with insurgency, cross-border crime, and terrorism.
The announcement comes at a time when African countries are increasingly seeking homegrown solutions to security challenges and exploring defence cooperation frameworks that reduce dependency on external arms suppliers.
The Defence Industries Corporation of Nigeria (DICON) was established in 1964 with a mandate to produce military and paramilitary equipment for the country’s security forces.
However, decades of underfunding and bureaucratic inefficiencies had rendered the institution less competitive until recent policy reforms began turning the tide.
SP Offshore Nigeria Limited, on the other hand, is a globally recognised defence tech company, specializing in the design, engineering, and manufacturing of modern defence platforms, particularly in maritime, land, and aerial systems.
With the signing of this $2 billion defence partnership, Nigeria has taken a bold step toward achieving self-reliance in military hardware production, in line with its 2027 defence sufficiency roadmap.
The initiative is expected to deliver not only enhanced national security, but also long-term economic dividends through local production, innovation, employment, and exports, a true leap forward for both the nation’s military capability and industrial capacity.