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 company aimed at localising the production of advanced security and surveillance technologies.
Under the agreement, the proposed joint venture company will operate as a subsidiary of DICON and be jointly promoted and owned by both organisations.
The partnership is expected to focus on assembling and developing high-technology security systems while building domestic capacity across Nigeria’s defence manufacturing value chain.
“This partnership demonstrates confidence in indigenous Nigerian engineering capability and creates a platform for sustainable defence technology development, innovation, and export competitiveness,” said Nathan Nwachuku, Terra Industries’ co-founder and chief executive.
What You Need to Know
The collaboration comes at a time when Nigeria continues to grapple with complex security challenges across multiple regions, intensifying calls for locally developed technological solutions to complement conventional military operations.
A 2024 policy brief by the Nigerian Institute of Social and Economic Research highlighted persistent gaps in Nigeria’s security architecture despite progress by security agencies, pointing to operational loopholes and resource constraints that require structural responses.
Terra’s partnership with DICON reflects an emerging strategy of integrating indigenous technology platforms, including drones, robotics and cybersecurity tools, into national security frameworks to enhance intelligence gathering, monitoring capabilities and rapid response coordination.
Scope of the Proposed Venture
According to the companies, the joint venture will oversee assembly operations, research and development activities, and specialised training programmes for security personnel in the deployment of advanced systems.
The initiative is expected to cover drone technologies, robotics platforms, cybersecurity infrastructure and associated proprietary software, positioning the venture as an integrated defence-technology hub rather than a single-product manufacturing operation.
Beyond production, the joint entity is also expected to facilitate technology transfer, expand local sourcing of components and raw materials, and support the supply of equipment to Nigerian security agencies. Stakeholders say these measures could reduce import dependence while fostering domestic industrial capability.
Terra Industries will contribute professional services, coordinate training programmes, support procurement of production equipment and leverage its technical expertise to attract both domestic and international capital. The startup is also expected to integrate existing defence supply-chain relationships into the venture and secure access to specialised manufacturing know-how.
The MoU follows a period of accelerated activity for Terra Industries. The startup recently secured $22 million in funding, coming one month after an additional $11.8 million raise aimed at expanding manufacturing capacity, accelerating deployments across Nigeria and allied African markets, and recruiting senior engineering and business leadership talent.
The successive fundraising rounds underscore investor confidence in defence-adjacent technologies and dual-use platforms capable of serving both security and commercial applications.
Policy Backing and Industry Partnerships
The agreement is being executed under the DICON Act 2023, legislation that broadened DICON’s mandate to collaborate with private and foreign firms through structured public-private partnerships.
Since the enactment of the law, DICON has pursued multiple alliances intended to modernise production capacity and accelerate technology adoption. These include a partnership with Homeland Protectors and Supplies Limited to support local manufacturing of drones and satellite systems, as well as the rollout of AI-enabled drones in collaboration with UNICCON Group of Companies.
While financial commitments and timelines for the Terra joint venture remain undisclosed, industry observers expect the collaboration to strengthen research capabilities and establish local assembly lines for advanced security systems over time.
“The partnership is a transformational step toward strengthening Nigeria’s defence manufacturing base, reducing import dependence, and positioning Nigeria as a regional hub for advanced innovation,” Major General B.I. Alaya, Director General of DICON, said.
The Terra–DICON partnership reflects a broader continental shift towards indigenous defence innovation, as African governments and private technology firms increasingly seek to build local production capacity amid evolving security demands.
Experts say the joint venture could contribute to Nigeria’s long-term ambition of developing a sustainable defence technology ecosystem, one that combines domestic manufacturing, software development and specialised workforce training while potentially unlocking export opportunities within the region.
Talking Points
The partnership between Terra Industries and Defence Industries Corporation of Nigeria reflects a notable shift towards indigenous defence innovation, signalling growing confidence in Nigeria’s local engineering and manufacturing capabilities.
By focusing on local production of drones, robotics systems and cybersecurity infrastructure, the collaboration aligns with broader policy ambitions to reduce import dependence while strengthening domestic security technology capacity.
At Techparley, this development highlights an emerging model where private startups complement state-led security efforts through specialised technology platforms that enhance surveillance, intelligence gathering and operational responsiveness.
Equally important is the emphasis on technology transfer and workforce training. Building local expertise around advanced systems will be critical to ensuring sustainability beyond initial deployments and preventing continued reliance on foreign technical support.
Looking ahead, deeper collaboration with academic institutions, research centres and international technology partners could strengthen the venture’s innovation pipeline while supporting export competitiveness.
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