President Bola Ahmed Tinubu has given the green light to finalise a groundbreaking $1 billion deal to bolster Nigeria’s defence industry.
This significant agreement, signed with the Managing Arm of the Military-Industrial Complex of the Indian government, marks a substantial step towards strengthening the country’s self-reliance in the production of defence equipment.
Under the terms of the deal, the Defense Industries Corporation of Nigeria (DICON) is set to achieve a remarkable goal.
By 2027, the corporation aims to become 40% self-sufficient in local manufacturing and production of defence equipment, thereby reducing Nigeria’s dependence on imports for its defence needs.
This move aligns with Nigeria’s broader strategy to enhance its defence capabilities and reduce reliance on external sources for military hardware.
The $1 billion investment is expected to facilitate advancements in domestic defence production and innovation, potentially transforming Nigeria into a regional hub for defence manufacturing.
The cooperation with the Managing Arm of the Military-Industrial Complex of the Indian government is seen as a strategic partnership that will leverage India’s expertise and experience in the defence sector.
This collaboration is anticipated to enable DICON to enhance its research and development capabilities, improve the quality of locally produced defence equipment, and expand its product range.
Officials of the Tinubu administration say the president’s approval of the deal underscores his government’s commitment to strengthening Nigeria’s national security infrastructure and bolstering the nation’s defence industry.
The move is also expected to create jobs and stimulate economic growth by promoting local production and reducing the outflow of foreign exchange for defence imports.
”The $1 billion investment represents a significant financial commitment to this endeavour, highlighting the importance of self-sufficiency in defence manufacturing.
”As Nigeria faces various security challenges, including insurgency and terrorism, a robust defence industry becomes crucial in ensuring the nation’s security and sovereignty.
”While the road to becoming 40% self-sufficient in defence manufacturing by 2027 is ambitious, it signifies a bold step forward in Nigeria’s pursuit of self-reliance and security enhancement,” a government official who asked to be anonymous said.