Terra Industries Signs MoU With DICON to Localise Drone and Defence-Tech Production in Nigeria
-
Johnson Olumide
- February 26, 2026
Nigerian defence technology startup Terra Industries has signed a memorandum of understanding (MoU) with the Defence Industries Corporation of Nigeria (DICON) to establish a joint venture to localise the production of advanced security and surveillance systems.
Under the agreement, the partners will create a Joint Venture Company (JVC) that will operate as a subsidiary of DICON and be jointly promoted and owned by both parties.
What the joint venture is expected to build
The proposed JVC will focus on the assembly, research and development, and officer training for high-technology defence systems, including drones, robotics platforms, cybersecurity infrastructure, and associated software.
According to the partners, the venture will also support technology transfer, strengthen local sourcing of raw materials and components, and improve the supply of security equipment to Nigerian security agencies.
Why is defence localisation gaining urgency?
The partnership comes amid worsening insecurity across Nigeria. A 2024 policy brief by the Nigerian Institute of Social and Economic Research (NISER) found that despite some gains by security forces, critical gaps in intelligence, coordination, and operational capacity remain.
By integrating locally developed surveillance systems into conventional security operations, Terra and DICON aim to strengthen intelligence-gathering and rapid-response capabilities across multiple regions.
Terra positions indigenous tech as a strategic asset
This partnership demonstrates confidence in indigenous Nigerian engineering capability,” said Nathan Nwachuku, co-founder and chief executive officer of Terra Industries, adding that the venture creates a platform for long-term defence technology development, innovation, and export competitiveness.
Terra will provide professional services, coordinate training programmes, support procurement of production equipment, and contribute technical expertise to attract both local and foreign capital into the joint venture.
Building local supply chains and regional ambition
Beyond production, the JVC is expected to integrate existing defence-sector supply chains, ensure access to manufacturing know-how, and promote local assembly lines for advanced systems.
The partners have also indicated ambitions to position Nigeria as a regional hub for drone manufacturing and defence-focused software development, serving both domestic and allied African markets.
How recent funding strengthens Terra’s hand
The agreement follows Terra’s recent fundraising activity. The startup raised $22 million last week and an additional $11.8 million a month earlier to expand manufacturing capacity, accelerate deployments in Nigeria and allied African countries, and hire senior engineering and business leaders across the continent.
These capital injections are expected to support Terra’s role in scaling the joint venture’s technical and operational capacity.
DICON’s expanding push into private-sector partnerships
The partnership is being executed under the DICON Act 2023, which expanded the corporation’s authority to collaborate with private and foreign firms through public-private partnerships.
Since the Act was signed, DICON has pursued several technical alliances to modernise its production base, including partnerships with Homeland Protectors and Supplies Limited and the UNICCON Group of Companies to manufacture drones, satellite systems, and AI-powered platforms locally.
What remains unclear
Details around capital commitments, production timelines, and the scale of initial manufacturing for the Terra joint venture have not yet been disclosed. However, both parties say the collaboration will deepen local R&D capacity and reduce Nigeria’s reliance on imported defence technology.
Describing the agreement as “transformational,” DICON Director General Major General B.I. Alaya said the partnership would strengthen Nigeria’s defence manufacturing base and position the country as a regional centre for advanced innovation.
As insecurity drives demand for locally built solutions, the Terra–DICON venture signals a more assertive role for indigenous defence technology in Nigeria’s security strategy.
