Nigerian defence-technology startup Terra Industries has signed a memorandum of understanding with the Defence Industries Corporation of Nigeria (DICON) to establish a joint venture aimed at localising the production of advanced security and surveillance systems
The agreement will lead to the creation of a Joint Venture Company (JVC), which will operate as a subsidiary of DICON and be jointly owned and promoted by both organisations. The new entity is expected to focus on assembling drones, robotics systems, cybersecurity infrastructure, and related defence software within Nigeria.
The partnership comes amid rising insecurity across parts of the country. A 2024 policy brief by the Nigerian Institute of Social and Economic Research (NISER) highlighted persistent gaps in Nigeria’s security architecture despite ongoing efforts by security agencies.
By combining Terra’s proprietary drone technology and monitoring software with DICON’s institutional backing, the venture aims to complement conventional security operations with advanced surveillance and intelligence systems designed and built locally.
Nathan Nwachuku, co-founder and CEO of Terra Industries, said the collaboration reflects growing confidence in indigenous engineering expertise.
“This partnership demonstrates confidence in Nigerian engineering capability and creates a platform for sustainable defence technology development, innovation, and export competitiveness,” he said.
The proposed JVC will oversee research and development, local assembly, and the training of security personnel in operating high-technology systems. It is also expected to promote technology transfer, encourage local sourcing of components and raw materials, and support the supply of equipment to Nigerian security agencies.
Beyond domestic deployment, the venture aims to position Nigeria as a regional hub for drone manufacturing and defence-focused software development.
Terra Industries will provide technical services, coordinate training programmes, support the procurement of production equipment, and leverage its supply-chain relationships to integrate manufacturing know-how into the new company. The startup is also expected to attract local and foreign investment into the venture.
The agreement is being executed under the DICON Act 2023, which broadened DICON’s powers to enter public-private partnerships with local and foreign firms. Since the Act’s passage, DICON has pursued multiple technical alliances to modernise its production capacity, including partnerships to manufacture drones and satellite systems locally and to develop AI-powered drone technology.
The Terra deal follows closely on the heels of the startup’s recent fundraising milestones, a $22 million round completed last week and an earlier $11.8 million raise aimed at expanding manufacturing capacity and accelerating deployments across Nigeria and allied African countries.
While details regarding capital commitments and production timelines for the new joint venture have not been disclosed, officials say the partnership is expected to significantly deepen local research capabilities and establish assembly lines for advanced defence systems.
Major General B.I. Alaya, Director General of DICON, described the agreement as a transformational step toward strengthening Nigeria’s defence manufacturing base, reducing reliance on imports, and positioning the country as a centre for advanced technological innovation in the region.
Source: Techcabal