Terra partners Nigeria’s military-run defence firm on local production

Terra Industries, a Nigerian defence-technology startup that builds drones and monitors locations using its proprietary software, has signed a memorandum of understanding (MoU) with the Defence Industries Corporation of Nigeria (DICON), a defence corporation operated by the Nigerian Armed Forces.

The partnership will establish a Joint Venture Company (JVC) that will operate as a subsidiary of DICON and will be jointly promoted and owned by DICON and Terra Industries to localise the production of advanced security systems.

It comes as the cases of insecurity across the country worsen. A 2024 policy brief by the Nigerian Institute of Social and Economic Research (NISER) found that despite the varying levels of success in combating insecurity by security personnel, inadequacies and loopholes which must be addressed still exist. 

Terra’s partnership with DICON is an attempt to complement conventional security operations with locally built surveillance systems and cybersecurity infrastructure that can strengthen intelligence gathering and rapid response across regions.

Nathan Nwachuku, co-founder and CEO of Terra Industries, saidthe partnership “demonstrates confidence in indigenous Nigerian engineering capability and creates a platform for sustainable defence technology development, innovation, and export competitiveness.”

The proposed JVC is expected to handle the assembly, research and development (R&D), and training of officers in the use of high-technology systems, including drones, robotics systems, cybersecurity infrastructure, and other associated software.

The JVC is also expected to promote meaningful technology transfer, strengthen local sourcing of raw materials and components, support the supply of security equipment to Nigerian security agencies, and position Nigeria as a regional hub for drone manufacturing and defence-focused software development.

Terra Industries will provide professional services, coordinate training programmes, support production equipment procurement, and use its technical expertise to attract both local and foreign capital into the venture. The startup is expected to procure spare parts, ensure access to manufacturing know-how, and integrate existing defence-sector supply-chain relationships into the new entity.

The partnership comes a week after Terra’s $22 million fundraising and one month after raising $11.8 million to expand manufacturing, accelerate deployments in Nigeria and allied African countries, and hire senior engineering and business leaders across Africa.

The agreement is being executed under the DICON Act 2023, which expanded the corporation’s powers to collaborate with private and foreign firms through public-private partnerships. 

Since the signing of the Act, DICON has moved to pursue a series of technical alliances to modernise its production capacity, including nclude its most recent partnership with the Homeland Protectors and Supplies Limited, a Saudi Arabia-based security company, to locally manufacture drones and satellite systems and the launch of AI-powered drones in partnership with the UNICCON Group of Companies.

Details around capital commitments and production timelines for the new joint venture with Terra Industries have yet to be disclosed. However, the partnership is expected to deepen research and local development capabilities, as well as establish local assembly lines for advanced systems. 

Major General B.I. Alaya, Director General of DICON, described the partnership as “a transformational step toward strengthening Nigeria’s defence manufacturing base, reducing import dependence, and positioning Nigeria as a regional hub for advanced innovation.”