# Terra, DICON engineering Nigeria’s Autonomous defence future

- Link: https://www.military.africa/2026/03/terra-dicon-engineering-nigerias-autonomous-defence-future/
- Published: 2026-03-07T20:44:14+01:00
- Author: Nzeadibe Ijeoma and Military Africa

On February 23, 2026, the Defence Industries Corporation of Nigeria (DICON) and 
[Terra Industries](https://www.terraindustries.co/) entered into a Memorandum of
Understanding (MoU) to establish a Joint Venture Company (JVC). This strategic agreement
creates a formal framework for the local production, assembly, research and development(
R&D), and specialised training in high-technology sectors. The partnership focuses
on unmanned aerial vehicles (UAVs), cybersecurity infrastructure, robotics, and 
integrated software and hardware platforms. Operating as a subsidiary of DICON, 
the JVC is jointly promoted and owned by both entities and is duly incorporated 
in Nigeria to ensure domestic oversight of critical national security assets.

The primary objective of the partnership is the establishment of advanced production
and assembly lines within Nigerian territory. By localising the manufacturing of
high-tech equipment, the JVC intends to facilitate meaningful technology transfer
and provide specialised training for Nigerian personnel. This strategy aims to strengthen
the local sourcing of raw materials, decrease reliance on international suppliers,
and improve national strategic autonomy. Beyond the immediate needs of the Nigerian
Armed Forces, the JVC will supply security equipment to other authorised domestic
institutions and wider security agencies, seeking to position Nigeria as a competitive
exporter in the global defence manufacturing market.

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Terra Industries produces autonomous security systems for critical infrastructure,
including long/mid-range drones (Archer and Iroko UAVs), sentry towers (Kallon/Kallot),
and unmanned ground vehicles (Duma). These systems are managed by their proprietary
ArtemisOS software for real-time threat detection.

**THE LEGAL AND STRATEGIC FRAMEWORK OF THE DICON ACT 2023**

The execution of this MoU follows the specific guidelines set by the DICON Act 2023.
This legislation, signed into law by President Bola Tinubu, represents a fundamental
shift in the operational mandate of the corporation. It transitioned DICON from 
a traditional government-run ordnance factory into a modern Military Industrial 
Complex (MIC). The Act provides a transparent legal structure that allows DICON 
to enter into predictable partnerships with private sector entities. This regulatory
environment is essential for attracting technical expertise and capital, as it clarifies
the terms of public-private cooperation in the sensitive area of national security.

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Under this new framework, Terra Industries serves as a technical lead, providing
professional services and manufacturing know-how. The company is responsible for
facilitating the procurement of specialised production equipment, coordinating international
training programs, and managing the integration of tooling and spare parts into 
the Nigerian supply chain. By leveraging the DICON Act 2023, the partnership seeks
to create a sustainable ecosystem where indigenous engineering can thrive alongside
global best practices. Major General B.I. Alaya, Director General of DICON, describes
the agreement as a “transformational step” toward strengthening the national manufacturing
base and reducing import dependence.

**TERRA INDUSTRIES: MULTI-DOMAIN INTELLIGENCE AND CAPITAL GROWTH**

Terra Industries, founded in 2024, operates as a multi-domain systems and data intelligence
firm. The company characterises itself as a defence prime for the African continent,
focusing on sectors including energy, mineral resources, maritime security, and 
counterterrorism. Its role in the JVC is to complement conventional military operations
with locally produced surveillance systems and cybersecurity tools that enhance 
intelligence gathering and rapid response capabilities. Nathaniel Nwachukwu, CEO
of Terra Industries, notes that the partnership demonstrates confidence in indigenous
engineering and creates a platform for sustainable innovation and export competitiveness.

The financial viability of Terra Industries has been bolstered by [a recent $22 million strategic funding](https://www.military.africa/2026/02/terra-industries-raises-additional-34-million-to-scale-autonomous-defence-systems-in-africa/)
extension led by Lux Capital. This brought the total capital raised in the current
round to $34 million. The funding round, which included participation from 8VC, 
Nova Global, Silent Ventures, Belief Capital, Tofino Capital, and Resilience17 Capital,
closed in less than two weeks. This rapid capital injection indicates a strong investor
interest in indigenous African defence solutions. Furthermore, Terra Industries 
has begun international expansion. On February 10, 2026, the firm [announced a partnership with AIC Steel](https://www.military.africa/2026/02/terra-industries-and-aic-steel-partner-for-saudi-security-manufacturing/)
to establish a manufacturing facility in Saudi Arabia. This venture focuses on autonomous
surveillance systems for critical infrastructure protection, aligning with Saudi
Arabia’s Vision 2030 and marking the first international expansion for the Nigerian-
based firm.

**TECHNOLOGICAL BENCHMARKS IN THE NIGERIAN DEFENCE SECTOR**

The collaboration between DICON and Terra Industries builds upon a series of recent
technological demonstrations and partnerships within Nigeria. On December 23, 2025,
[DICON and UNICCON](https://www.military.africa/2026/01/nigerias-dicon-partners-uniccon-on-indigenous-c-uas-solution/)
demonstrated a counter-drone system at the Jaji Shooting Range in Kaduna. This event
showcased the UNIKAM series of loitering munitions and an integrated drone detection
and jamming system. The UNIKAM loitering munitions, which are multi-rotor kamikaze
UAVs, have an operational range of 8 to 15 km, a flight time of 10 to 20 minutes,
and a payload capacity of 2.5 kg. These systems can reach speeds exceeding 200 km/
h and offer flexible control options, including autonomous, semi-autonomous, or 
manual flight via first-person view (FPV) goggles.

**DIVERSIFYING THE LOCAL MANUFACTURING BASE**

The DICON-Terra partnership is part of a broader network of alliances aimed at industrialising
the Nigerian defence sector. In October 2025, DICON [formalised ](https://www.military.africa/2025/11/russelsmiths-additive-manufacturing-deal-with-dicon-advances-nigerias-defence-production/)
an agreement with RusselSmith Nigeria Limited to integrate industrial additive manufacturing,
or 3D printing, into production lines. RusselSmith, which has extensive experience
in the energy sector, provides the capability to manufacture high-performance components
that were previously imported. This reduces the time and cost associated with procurement
cycles for specialised parts. This alliance directly executes the strategic mandate
of the DICON Act 2023 and aims to reduce reliance on foreign military imports substantially.

Additionally, DICON has engaged in several other joint ventures and technical partnerships
to broaden its industrial footprint. Through a [partnership with Gray Insignia Nigeria](https://www.military.africa/2025/02/dicon-and-gray-insignia-to-supply-firearms-to-the-nigerian-army/),
DICON developed the Hawk Sniper Rifle. This Nigerian-designed weapon system is a
lightweight, modular rifle specifically optimised for the environmental conditions
faced by Nigerian troops. Gray Insignia previously established technical links with
the Chinese company Norinco in 2020 for the production of 7.62mm and 9mm ammunition
and AK-47 type assault rifles.

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Furthermore, in 2024, Buckler Land Systems [signed an MoU with DICON](https://www.military.africa/2024/08/buckler-land-systems-signs-joint-arms-production-agreement-with-dicon/)
for the joint production of military hardware. Buckler specialises in civilian and
military armoured vehicles, as well as the construction of turnkey armoured vehicle
plants, and has expressed intent to export excess production capacity to other African
nations.

**RESEARCH AND DEVELOPMENT FOR NATIONAL RESILIENCE**

Academic collaboration remains a critical component of Nigeria’s defence industrial
strategy. In June 2020, DICON partnered with the University of Ilorin to [develop composite materials](https://www.military.africa/2020/07/nigerian-army-dicon-signs-agreement-to-develop-composite-armor-for-military-vehicles/)
for armour plating. This research focuses on creating indigenous ballistic protection
for military vehicles, utilising local material science to improve vehicle survivability
and reduce the weight of protective systems. The initiative is expected to promote
indigenous technology that will assist in the production of both civil and military
hardware. Jide Awe, Chief Executive Officer of Jidaw Systems Limited, observes that
this reflects a broader recognition that local technological competence is critical
for national resilience.

Developing local capabilities in areas such as cybersecurity, embedded systems, 
and secure communications strengthens the overall innovation ecosystem. Historically,
the Nigerian defence sector has faced challenges due to its heavy reliance on foreign
hardware. This dependence has created exposure to foreign exchange fluctuations,
long lead times for spare parts, and uncertainties in the global supply chain. The
partnership with Terra Industries 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 various regions.

**FUTURE PROJECTIONS FOR THE JOINT VENTURE**

The JVC is expected to begin operationalising its assembly lines in the near term,
with a focus on the immediate deployment of surveillance drones for border security
and counterterrorism operations. The technical expertise provided by Terra Industries,
combined with the manufacturing infrastructure of DICON, provides a dual-pathway
for growth. This includes meeting domestic security requirements while developing
products suitable for the regional African market. The initiative is also expected
to position Nigeria as a regional hub for drones, high-tech manufacturing, and R&
D while creating skilled employment opportunities for young Nigerians. The revival
of arms and ammunition production at DICON, following years of suspension and subsequent
reforms, indicates a renewed focus on industrial self-reliance. The JVC with Terra
Industries represents the high-technology tier of this revival. While traditional
ordnance remains a staple of the corporation, the integration of robotics, AI-driven
data intelligence, and autonomous systems marks a notable evolution in Nigeria’s
military capabilities. As the JVC matures, the integration of advanced manufacturing
techniques and indigenous software will likely become the standard for Nigerian 
defence procurement. This transition signifies a move from being a consumer of global
defence technology to a developer of sovereign tactical solutions.

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