Terra Industries, a Nigerian defence-technology startup known for building drones and surveillance software, has signed a memorandum of understanding with the Defence Industries Corporation of Nigeria (DICON), the military-run defence manufacturer.
The agreement will see both parties establish a joint venture company (JVC) focused on producing advanced security systems locally. The new entity will operate as a subsidiary of DICON and will be jointly owned and promoted by the two organisations.
The move comes at a time when insecurity remains a pressing national concern. A 2024 policy brief by the Nigerian Institute of Social and Economic Research (NISER) noted that while security forces have recorded varying degrees of success, significant operational gaps and structural weaknesses still persist.
Terra’s partnership with DICON aims to address some of those gaps by complementing traditional security operations with locally developed surveillance technology and cybersecurity infrastructure. The focus is on strengthening intelligence gathering, improving monitoring capabilities, and enabling faster response across different regions.
Nathan Nwachuku, co-founder and chief executive of Terra Industries, described the deal as a strong vote of confidence in homegrown engineering talent. He said the collaboration would create “a platform for sustainable defence technology development, innovation, and export competitiveness.”
Under the proposed structure, the joint venture will handle assembly, research and development, and the training of security personnel in the use of advanced systems. These include drones, robotics platforms, cybersecurity tools, and supporting software solutions.
Beyond manufacturing, the partnership is expected to encourage technology transfer, boost local sourcing of components and raw materials, and improve the supply of security equipment to Nigerian agencies. If successful, it could also position Nigeria as a regional hub for drone manufacturing and defence-focused software development
Under the agreement, Terra Industries will provide professional and technical services to the new joint venture, coordinate training programmes, and support the procurement of production equipment. The company will also leverage its engineering expertise and investor network to attract both local and foreign capital into the venture.
Terra is expected to source spare parts, secure access to critical manufacturing know-how, and plug its existing defence-sector supply chain relationships into the new entity, steps aimed at accelerating production and reducing reliance on imports.
The partnership follows closely on the heels of Terra’s recent fundraising activity. Just a week ago, the startup announced a $22 million raise, coming only a month after securing $11.8 million to expand its manufacturing footprint, scale deployments across Nigeria and allied African countries, and recruit senior engineering and business talent across the continent.
The agreement is being executed under the DICON Act 2023, which broadened the powers of the Defence Industries Corporation of Nigeria (DICON) to collaborate with private and foreign companies through public-private partnerships.
Since the Act was signed into law, DICON has actively pursued technical alliances to modernise its production capacity. These include a partnership with Homeland Protectors and Supplies Limited to locally manufacture drones and satellite systems, as well as the launch of AI-powered drones in collaboration with UNICCON Group of Companies.
While details around capital commitments and production timelines for the Terra joint venture have not yet been disclosed, the collaboration is expected to expand research capabilities, strengthen local development, and establish assembly lines for advanced security systems within Nigeria.
Major General B.I. Alaya, Director General of DICON, described the agreement as “a transformational step” toward strengthening Nigeria’s defence manufacturing base, cutting import dependence, and positioning the country as a regional hub for advanced innovation.