The Defence Industries Corporation of Nigeria (DICON) and Oida Energy Limited have signed a landmark Memorandum of Understanding (MoU) to establish the country’s first indigenous oilfield shaped charge manufacturing facility.
The agreement, sealed at the Armed Forces Officers’ Mess & Suites in Abuja, is a major step towards strengthening Nigeria’s industrial and energy base while positioning the nation as a hub for local production of critical upstream oilfield technologies.
The event was attended by senior officials and stakeholders across Nigeria’s defence, security, and energy sectors, including the Director-General of DICON, the Managing Director/Chief Executive Officer of Oida Energy, representatives of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Office of the National Security Adviser (ONSA), and other industry leaders.
The planned facility is expected to support the Federal Government’s industrialisation agenda by boosting local content, conserving foreign exchange, and reducing dependence on imported oilfield explosives. By producing safe and reliable shaped charges domestically, the project will strengthen petroleum operations, enhance energy security, and reinforce national defence preparedness.
“The agreement is a decisive move towards building indigenous capacity in sensitive and strategic technologies that are critical to both national security and economic growth,” said Major General Babatunde Ibrahim Alaya, Director-General of DICON.
Oida Energy’s Managing Director/CEO, Engr. Emeka Ene, added: “This partnership underscores our dedication to delivering world-class local manufacturing solutions that will strengthen Nigeria’s energy and security value chains, while empowering our workforce and conserving vital national resources.”
The initiative is also expected to create skilled jobs, enable advanced technology transfer, and open opportunities for Nigerian service companies across the oil and gas value chain.
Special recognition was given to the Nigerian Content Development and Monitoring Board (NCDMB) for ensuring alignment with the country’s local content policy, while the Minister of State for Petroleum Resources (Oil) was commended for policy support that enabled the milestone.
The MoU has been described as a strong example of collaboration between government, regulators, and industry—marking both a milestone for the oil and gas sector and a defining moment in Nigeria’s quest for technological self-reliance and sustainable development.