In a strategic move to enhance Nigeria’s defense capabilities, the Defence Industry Corporation of Nigeria (DICON) has entered into a partnership with D7G Limited, a private sector player, to ramp up the production of arms, ammunition, and military vehicles.
The collaboration, announced by DICON’s Director General, Major General Babatunde Alaya, during an interview in Kaduna, marks a pivotal step toward strengthening the country’s indigenous defense manufacturing sector.
The MoU was signed by the Director General DICON, Major General AE Edet and the Chief Executive Officer D7G Osman Chennar at the DICON Headquarters 18 January 2024.
This partnership comes at a time when Nigeria is intensifying efforts to modernize its military and reduce reliance on foreign arms suppliers amid ongoing security challenges.
Major General Alaya emphasized the partnership’s goal of elevating Nigeria’s domestic production of critical defense equipment. He explained that the collaboration with D7G Limited aims to advance the local manufacturing of ammunition, weapons, vehicles, and drones, all of which are vital for the Nigerian military’s operational needs. Alaya also noted that both parties are finalizing the modalities and action plans to ensure the partnership’s success, with a clear timeline established for each phase. He expressed confidence that within the next one or two years, tangible manufacturing progress would be evident.
Osman Chennar, CEO of D7G Limited, echoed this optimism, affirming his belief in the Nigerian government’s vision and commitment to the partnership. Chennar outlined a phased approach to production, beginning with arms within three months, followed by ammunition in the second phase, and vehicles in the third. He also expressed a broader ambition for the collaboration, hoping to see other African nations procure defense equipment from DICON, positioning Nigeria as a regional leader in the sector.
This partnership is part of a larger transformation underway at DICON, spurred by recent legislative and operational developments. In 2023, President Bola Tinubu signed the Defence Industries Corporation of Nigeria (DICON) Bill into law, a landmark reform that repealed the previous DICON Act and introduced new opportunities for growth. Sponsored by Babajimi Benson, Chairman of the House of Representatives Committee on Defence, the bill allows DICON to operate subsidiaries and ordnance factories, establish a research and development institute, and attract private capital to boost production and innovation. It also seeks to improve accountability, transparency, and efficiency within the corporation, aligning its operations with Nigeria’s pressing security needs, such as combating insurgency, banditry, kidnapping, and piracy.
The DICON Bill’s impact has been complemented by a $1 billion deal with India, signed in 2023, to modernize the corporation’s facilities and elevate local production of defense equipment to 40% by 2027. This agreement provides DICON with both funding and technical expertise to develop advanced systems, including drones, missiles, and radars. The results of these efforts became apparent in 2024, when DICON resumed arms and ammunition production after years of suspension. In January of that year, the corporation supplied approximately four million rounds of ammunition to the Nigerian Army and began assembling a range of weapons to support military operations.
Beyond its collaboration with D7G Limited, DICON has pursued other strategic partnerships to bolster its capabilities. Late last year, the corporation signed a Memorandum of Understanding with Buckler Land Systems, a Nigerian military equipment manufacturer, to jointly produce hardware for the Nigerian Army and other security agencies. In 2025, DICON announced a joint venture with Gray Insignia Nigeria to develop weapon systems tailored for the country’s military and security forces. This venture, known as DGI, has already produced the Hawk Sniper Rifle, a Nigerian-designed and manufactured weapon that has completed testing and is ready for full-scale production. DGI plans to expand its operations further, contributing to Nigeria’s growing self-sufficiency in defense manufacturing.
These developments reflect a concerted effort to build a robust military-industrial complex with DICON at its core. The corporation’s ability to produce drones and military vehicles through the D7G partnership is particularly promising, given Nigeria’s historical dependence on foreign suppliers for such equipment. Drones, with their applications in surveillance, reconnaissance, and precision strikes, could prove transformative for counterinsurgency efforts and border security. Meanwhile, the production of vehicles and ammunition will enhance the Nigerian military’s mobility and firepower in the face of evolving threats.
The collaboration with D7G Limited also holds potential beyond Nigeria’s borders. Osman Chennar’s vision of supplying other African countries with DICON’s products aligns with continental goals of fostering intra-African trade and cooperation in critical sectors like defense. If successful, this partnership could establish Nigeria as a hub for military equipment manufacturing in the region.
As DICON continues to modernize and expand its partnerships, it is laying the groundwork for a more self-reliant defense industry. The combination of the DICON Bill’s reforms, the India deal’s resources, and alliances with companies like D7G Limited, Buckler Land Systems, and Gray Insignia Nigeria signals a new chapter for the corporation. With production timelines in place and a clear path forward, DICON is poised to equip Nigeria’s armed forces with the tools they need to address the nation’s security challenges effectively.
