Nigeria’s Defence Industries Corporation of Nigeria (DICON) and Terra Industries have signed a landmark joint-venture agreement aimed at strengthening local defence production and reducing the country’s reliance on imported military technologies.
The agreement will see both entities collaborate on manufacturing, technology transfer, and supply-chain integration to build sovereign defence capabilities — from assembly lines to advanced systems designed and deployed in Nigeria.
Terra is expected to not just supply parts but also to ensure access to defence manufacturing know-how and deeper integration into existing supply chains.
DICON’s Director-General, Major General B.I. Alaya described the deal as a “transformational step” toward building a regional hub for advanced innovation that lessens import dependence while expanding local capability.
The deal comes at a time when Terra has emerged as arguably Africa’s most funded seed-stage startup. It raised $11.75 million in January 2026 in a round led by 8VC, founded by Palantir Co-founder Joe Lonsdale.
Just weeks later, the company secured an additional $22 million led by Lux Capital, bringing its total funding to $34 million.
Balancing foreign support with local credibility
Terra’s Silicon Valley-led funding has sparked discussions about foreign capital’s role in African defence startups.
However, the DICON partnership can be seen as a move to anchor Terra’s work more firmly within Nigeria and Africa.
The joint-venture agreement may therefore serve a dual purpose: reinforcing Terra’s commitment to supporting African defence independence while also leveraging global financing to scale.
Victoria Fakiya – Senior Writer
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Though Terra has only been operational for a short period, its rapid rise has drawn government interest, placing it alongside more established players in Nigeria’s defence sector, such as Proforce Limited, which has been active in the market for over a decade.
The DICON deal further elevates Terra’s profile, affirming its role not just as a startup with global backing, but as a credible partner in Nigeria’s long-term defence industrial strategy.
In a sector traditionally dominated by legacy contractors and imports, this partnership signals a shift toward locally driven defence production, a development with potentially wide-ranging implications for national security, economic sovereignty, and regional cooperation in Africa.
