The Defence Industries Corporation of Nigeria (DICON) has entered into a landmark agreement with Oida Energy Limited to establish the country’s first facility for manufacturing oilfield shaped charges—specialised explosives used in petroleum exploration.
The Memorandum of Understanding was signed over the weekend at the Armed Forces Officers’ Mess & Suites in Abuja, with top government and industry officials in attendance, including the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, Gbenga Komolafe, and the National Security Adviser, Nuhu Ribadu.
Shaped charges, also known as perforating charges, are vital to oil production. They are precision explosives that pierce steel casings and rock formations, creating channels through which crude oil and natural gas can flow into wells. Until now, nearly all of these devices used in Nigeria have been imported, placing pressure on the nation’s foreign reserves and hindering local technological growth.
Speaking at the event, DICON’s Director-General, Major General Babatunde Alaya, described the project as a bold step toward strengthening indigenous capacity in sensitive industrial technologies. He noted that the new plant would enhance energy security, promote technology transfer, save foreign exchange, and generate jobs for Nigerians.
Oida Energy’s Managing Director, Emeka Ene, also pledged his company’s commitment to building “world-class local manufacturing solutions” that will support both Nigeria’s oil and gas sector and its broader security framework.
The Nigerian Content Development and Monitoring Board, which facilitated the partnership, highlighted the deal as a critical milestone for the country’s local content policy, aimed at reducing reliance on foreign imports and boosting domestic industrialisation.
The partners praised the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, for providing the policy support that made the initiative possible.
Officials stressed that the collaboration reflects a growing alignment between Nigeria’s defence sector, regulators, and private industry in pursuing self-sufficiency in vital energy and security technologies.
