Nigerian drone maker Terra Industries has signed a joint venture agreement with the Defence Industries Corporation of Nigeria to supply security equipment and training to the country’s armed forces, marking a major shift toward local defence manufacturing.
The partnership with DICON, Nigeria’s state-owned defence production agency, will see Terra provide autonomous drones, sentry towers, unmanned ground vehicles, and technical training to military personnel.
It’s the first time a Nigerian private defence tech startup has entered into this kind of formal arrangement with the government’s official weapons manufacturer.
The deal positions Nigeria as a potential regional hub for high-tech defence manufacturing and research and development, while building local production capacity, creating jobs, and strengthening supply chains in a sector that’s been almost entirely dependent on imports.
Nigeria has historically purchased military equipment from foreign suppliers, including drones from China, Turkey, or the United States, as well as armoured vehicles from Europe. This creates problems, including long waiting times for procurement, high costs, vulnerability when suppliers impose restrictions, and a limited ability to maintain equipment without external assistance.
By partnering with Terra, DICON is betting that Nigeria can produce at least some of its defence technology domestically. This reduces dependence on foreign manufacturers and creates the foundation for a local defence industry that can serve both Nigerian forces and potentially other African militaries.
Major General B.I. Alaya, DICON’s director general, called the agreement “a transformational step toward strengthening Nigeria’s defence manufacturing base, reducing import dependence, and positioning Nigeria as a regional hub for advanced innovation.”
IMG: Terra Industries
The joint venture also means Nigerian defence personnel will receive training directly from Terra on how to operate and maintain the equipment. That’s critical because sophisticated technology is useless if the people using it don’t understand how it works or can’t fix it when something breaks.
Also read: Terra raises $22m with strong backing from Flutterwave’s Gbenga Agboola, Lux Capital
Terra CEO Nathaniel Nwachukwu said the partnership “demonstrates confidence in indigenous Nigerian engineering capability and creates a platform for sustainable defence technology development, innovation, and export competitiveness.”
Terra manufactures autonomous security systems, including long-range drones, sentry towers, and unmanned ground vehicles, at its factory in Abuja. The company has been securing critical infrastructure across Africa, power plants, mining operations, and oil facilities, using the same technologies that will now go to Nigeria’s military.
The startup raised $34 million recently from investors, including Flutterwave CEO Gbenga Agboola’s Resilience17 Capital and Silicon Valley’s Lux Capital, giving it resources to scale production rapidly. Terra is also expanding its Abuja facility and building a second factory in Saudi Arabia through a partnership with industrial giant AIC Steel.
For DICON, which has faced years of criticism over limited production capacity and outdated equipment, the Terra partnership offers a chance to modernise and prove that Nigeria can build competitive defence technology locally.
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