2025 Budget: FG Allocates ₦8bn to Defence Industries to Boost Local Arms Production

• FG allocates ₦8bn to DICON in 2025 budget for local arms production.
• The funding aims to reduce reliance on imported weapons.
• Key projects include facility upgrades and raw material procurement.

The Federal Government has allocated ₦7.94 billion to the Defence Industries Corporation of Nigeria (DICON) in the 2025 Appropriation Bill to enhance the nation’s arms production capabilities.

Established in 1963 to produce weapons locally, DICON has faced criticism over the years for its underperformance, as Nigeria continues to rely heavily on imported arms and ammunition.

EKO HOT BLOG reports that despite repeated promises from successive administrations to revamp the corporation, the situation remains largely unchanged.

Between January and July 2024, the government spent at least ₦63.6 billion on military equipment and ammunition for the Nigerian Armed Forces and the Office of the National Security Adviser. In the first quarter of 2023 alone, ₦115 billion was expended on arms imports.

A detailed review of the 2025 Appropriation Bill shows that ₦2.96 billion is allocated for personnel costs, ₦774.17 million for overhead expenses, and ₦4.21 billion for capital projects.

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The capital budget includes funding for modernizing DICON’s facilities, such as the repair and replacement of obsolete electrical equipment, the rehabilitation of the explosives factory in Jebba, and the procurement of raw materials, tools, and tooling equipment for weapons and ammunition production.

Additional projects include electrification of the Jebba explosives factory, provision of alternative power supply for DICON headquarters, and upgrades to security facilities at factory complexes and headquarters.

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The budget also includes allocations for renovating the weapons assembly workshop, establishing an effluent plant at the ordnance factory, and constructing a blast-proof explosives research laboratory.

These efforts are aimed at reducing Nigeria’s reliance on foreign arms suppliers by strengthening domestic arms production. However, whether these investments will translate into meaningful improvements remains uncertain.

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