Business
DICON Signs $2 Billion Joint Venture Agreement With SP Offshore Nigeria Limited to Boost Local Production of Military Munitions
The Nigerian military on Wednesday said that the Defence Industries Corporation of Nigeria (DICON) has signed a $2 billion investment partnership agreement with SP Offshore Nigeria Limited to revive the defence industry and boost local sufficiency in manufacturing of the defence needs of the armed forces and other security agencies.
Signing the partnership agreement with the Chief Executive Officer (CEO) of SP Offshore Nigeria Limited, on Wednesday in Kaduna, the Director General of DICON, Major General Babatunde Ibrahim Alaya, stated that the partnership would achieve the Federal Government’s projection of achieving self-sufficiency in defence manufacturing while reducing foreign imports by 2027, as outlined in the DICON Act 2023.
He added that the collaboration would not only strengthen Nigeria’s defence capabilities but also position the country as a regional leader in defence production, with the potential for exporting excess capacity to other African nations.
General Alaya, in a statement signed by the Deputy Director of Public Information and Media, DICON, Lieutenant Colonel Haruna Sani, said, “The historic partnership marks a transformative step towards achieving Nigeria’s vision of a robust military-industrial complex.”
The DG further stated that with SP Offshore’s advanced technological capabilities and its backing by foreign investors, the partnership would produce world-class defence equipment manufactured locally while ensuring self-sufficiency in supporting regional security.
He added that leveraging SP Offshore’s cutting-edge expertise and DICON’s established infrastructure, the joint venture would enhance Nigeria’s military capabilities, create jobs, and drive technological innovation.
The DG applauded President Bola Ahmed Tinubu for signing the DICON Act 2023, which allows it to enter into such partnerships. He also appreciated the Ministers of Defence, CDS, and the Service Chiefs for their continuous support.
The Group Chief Executive Officer of SP Offshore Nigeria Limited, Mr Obafemi Adekunle, asserted that the partnership would also establish state-of-the-art production facilities in Nigeria for the production of ammunition, small arms, drones, and advanced defence systems tailored to the needs of the Armed Forces of Nigeria and other security agencies.
He further said that the joint venture would also focus on establishing assembly lines for ammunition, weapons, drones, radars, biometric systems, and other critical defence equipment.
SP Offshore Nigeria Limited is a global leader in defence technology, specialising in the development and manufacturing of advanced military equipment, including drones, weaponry, and integrated defence systems, to enhance national security and operational effectiveness.
