DICON GRAY Insignia (DGI), one of Nigeria’s indigenous defence manufacturer is planning to expand its operations in the production of military equipment in a key move to enhance the country’s self-sufficiency.
This move aims to position Africa’s most populous nation as a regional leader in defence manufacturing while driving industrial growth and job creation.
“We are dedicated to developing world-class defence production capabilities in Nigeria, and we are in advanced discussions with various stakeholders to ensure the best strategic location for our investment,” said Bem Garba, managing director of DGI in a statement.
“This project will not only enhance national security but also create significant employment and economic growth opportunities.”
With this expansion move, Nigeria is on course to begin local production of military-grade equipment, thereby reducing the nation’s reliance on foreign imports that have continued to exert pressure on the rather scarce forex.
The Defence Industries Corporation of Nigeria (DICON) Act signed into law by President Bola Tinubu in 2023 empowers local defense manufacturers to produce military items aimed at unlocking employment opportunities and boosting economic growth.
According to the company, the expansion includes three specialized production lines with ongoing discussions to identify strategic locations for these facilities across the country.
“DGI has engaged with key stakeholders and state governments to identify the most strategic locations for these facilities. The company remains focused on fostering partnerships that align with its vision of positioning Nigeria as a regional leader in defense manufacturing,” the firm stated.
It said it is currently assessing multiple factors, including infrastructure, investment incentives, and ease of doing business, to finalize the optimal locations for its factories.
The company expects to break ground on construction within the year, with the objective of completing the facilities before the end of 2025.
“As part of its commitment to fostering local partnerships, DGI continues to engage with state governments, security agencies, and industrial leaders to ensure that the project delivers maximum benefits to both Nigeria and the host communities,” the firm said.
In February, the Defence Industries Corporation of Nigeria (DICON) announced a joint venture with Gray Insignia Nigeria to develop weapon systems tailored for the Nigerian military and other security agencies. Production of these weapons could begin before the end of the year in Nigeria.
The joint venture, known as DGI, between DICON and Gray Insignia Nigeria, has already seen the creation of the Hawk Sniper Rifle, designed and made in Nigeria. This rifle has undergone testing and is ready for full-scale production for the Nigerian Armed Forces (AFN).
