An investment firm based in the United Arab Emirates, Elmirate Capital, signed a memorandum of understanding (MoU) on March 16, 2026, to invest $200 million in Nigeria’s defence and aerospace sectors. The agreement with Nigerian partner Nigus International Investment Limited aims to localise the production of satellite systems, tactical unmanned aerial vehicles (UAVs), and advanced manufacturing capabilities.
The partnership will operate through a special purpose vehicle named Nigus Tactical Systems Ltd. This entity serves as the primary platform for technology transfer and operational development under the regulatory oversight of the Defence Industries Corporation of Nigeria (DICON). The move aligns with the DICON Act 2023, which grants the state-run corporation expanded powers to manage subsidiaries and ordnance factories, reducing reliance on foreign military imports.
Managing Director of Elmirate Capital, Pankajj Ghode, stated that the commitment reflects confidence in Nigeria’s potential to host a resilient ecosystem for cybersecurity and aerospace. Executive Chairman of Nigus International, Prince Malik Ado-Ibrahim, noted that the initiative focuses on building an industrial platform where technological capability shapes both economic strength and national security. Executive Chairman of Nigus International and Managing Director of Elmirate Capital finalised the deal in Abuja.
The $200 million capital injection covers several high-tech categories, including earth observation (EO) satellites and secure communication networks. On the ground, the investment supports the domestic production of armoured vehicles and munitions. The firm plans to establish “Class C” local defence manufacturing platforms, which are designed to enable the domestic assembly of essential systems while strengthening industrial self-reliance.
A significant portion of the project targets Intelligence, Surveillance, and Reconnaissance (ISR) capabilities. This includes the development of tactical drones and unmanned aerial systems (UAS) for counter-terrorism and border security. Beyond physical equipment, the partnership intends to build digital security infrastructure, such as military cyber defence systems and “cyber ranges” used for training personnel to defend against emerging digital threats and electronic warfare. The satellite component aims to build upon Nigeria’s existing space capabilities, specifically the DELSAT-1 military satellite officially inaugurated and “commissioned” for operational use by the Nigerian government on December 20, 2022.
This investment follows a period of rapid activity in the Nigerian private defence sector. On February 23, 2026, DICON entered a similar joint venture with Terrahaptix Inc. (formerly Terra Industries) to produce autonomous systems and AI-powered sentry towers. Terrahaptix recently finalised a $34 million funding extension led by Lux Capital, suggesting a surge in investor appetite for indigenous African military technology.
The DICON Act 2023 is the catalyst for these agreements as it provides a modern legal framework for public-private partnerships. By establishing the Defence Industry Technology, Research, and Development Institute (DITRDI), the Nigerian government has created a formal pathway for private firms to integrate with national security objectives. These partnerships aim to transition Nigeria from a consumer of foreign hardware to a regional hub for aerospace innovation.
The entry of the UAE capital suggests that Nigeria is successfully positioning itself as a primary market for aerospace and military technology manufacturing in West Africa. The long-term success of these ventures will depend on effective technology transfer and the training of local engineers and technicians. As Nigus Tactical Systems begins its operational development, the focus will likely turn to the construction of specific manufacturing lines for drones and munitions. These developments are expected to provide Nigeria with greater strategic autonomy in its ongoing efforts to address domestic and regional security challenges.