CEM REPORT, SECURITY | Nigeria is a country that faces a complex web of security threats, from terrorism in the northeast to militancy in the south, to communal clashes and banditry in the middle belt. To effectively address these challenges, a robust and well-equipped defence force is crucial.
However, Nigeria as the economic and military behemoth of West Africa, has historically grappled with a heavy dependence on foreign arms, leaving it susceptible to fluctuations in global markets and political alliances.
Recognizing this vulnerability, Nigeria has embarked on a journey to develop a domestic defence industry, aiming to produce weapons and equipment tailored to its specific needs. This effort dates back to the 1960s with the establishment of the Defence Industries Corporation of Nigeria (DICON). While DICON faced challenges like inadequate funding and outdated technology, it laid the groundwork for future development.
The DICON in collaboration with Fritz Werner, a West German manufacturing firm, and the Soviet Union produced various types of small arms, light weapons, and ammunition, as well as some medium-range weapons such as mortars and rocket-propelled grenades.
That was it for the DICON as of the time until recently, but the question remains, if an agency was created to develop and/or manufacture weapons, what has it been doing all this while?
The DICON can hide under the excuse of inadequate funding, obsolete technology, low capacity, poor quality control, and lack of innovation as the source of its inconsistency. It is interesting to note that the DICON has also faced competition from the thriving craft production of small arms in Nigeria, which employs blacksmithing techniques to create weapons that are cheaper and more accessible than the industrially produced ones. According to the Small Arms Survey, Nigeria has the largest craft production of small arms in Africa, with an estimated annual output of 350,000 to 500,000 units. The survey further places Nigeria as the fifth largest importer of small arms and light weapons globally.
DICON Achievement
However, the DICON has made an effort in recent years to revitalize and expand its defense industry, by seeking partnerships with foreign companies, diversifying its product range, and upgrading its facilities. This was evident in 2018 when the DICON signed a letter of intent with the Polish Armaments Group (PGZ) for the production and technology transfer of Beryl M762 assault rifles in Nigeria, which will serve as the standard-issued rifle for the Nigerian military. DICON has also produced other weapons such as the OBJ-006 assault rifle, the NR-1 battle rifle, and the locally made Mine-Resistant Ambush Protected (MRAP) vehicle called Ezugwu.
Also, Nigeria has established other defence companies , such as the Nigerian Machine Tools (NMT), which produces heavy weapons and armoured vehicles, and the Proforce Limited, which produces bulletproof vests and helmets, as well as armoured personnel carriers and patrol vehicles. Nigeria has also started to export some of its weapons and equipment to other African countries, such as Chad, Niger, and Ghana.
Nigeria Defence Allocation: Spent or Invested
In 2022, former President Muhammadu Buhari during his speech at the launch of a major defence equipment acquisition program said: “We must move away from being a dumping ground for second-hand weapons and become a producer of our own security needs.” The statement whilst very true and necessary could have been said to come from the place of funding.
Nigeria’s defence budget comprises recurrent and capital expenditures; Capital expenditures are used for acquiring assets including military hardware, platforms and other infrastructure; while Recurrent expenditure is used for wages, salaries, allowances, and other personnel costs. According to data, since 2015 Nigeria’s defence budget indicates a steady rise, even though the allocation to recurrent expenditure far outweighs capital expenditure.
Data from the Budget Office of the Federation shows that the first budget for the Ministry of Defence under Buhari’s administration was ₦443.1 billion in 2016. Out of this sum, ₦130.80 was budgeted for capital expenditure. In 2017, the Ministry of Defence was allocated ₦465.40 billion, of which ₦140 billion was for capital expenditure.
In 2018, ₦576.31 billion was allocated to defence and ₦157.71 billion was set aside for capital expenditure. By 2019, the defence allocation increased to ₦589.9 billion, and ₦159.10 billion was set aside for capital expenditure.
Defence allocation jumped to ₦900 billion in 2020 and ₦116 billion was allocated to capital expenditure. In 2021, the defence ministry got ₦772.60 billion, while ₦127.80 billion went to capital expenditure.
The defence budget leapt further to ₦1.2 trillion in 2022 and ₦1.248 trillion in 2023, out of which ₦204.60 billion, and ₦156.20 billion were budgeted for capital expenditure respectively.
Buhari just before he left office revealed that his administration had invested over $1 billion in the acquisition of weapons, which he said has yielded tremendous results in the war against terror.
While I have no problem with the figures, I do have a problem with the utilisation. $1 billion was not invested but rather spent. The bulk of the funds were spent on recurrent expenditure, I have no problem with salaries and wages of security personnel however little was poured into development, instead capital expenditure was downed into the Importation of weapons. More disturbing is, that Nigeria borrows annually to fund its budget meaning Nigeria borrowed to buy weapons. This has no doubt affected the ability of the defence industry to acquire new technology, upgrade existing facilities, and expand production capacity.
A Comparative Look at African Defense Industries
Compared to other African nations, Nigeria’s defence spending is substantial, dwarfing regional neighbours like Ghana ($240 million) and Togo ($80 million). However, it pales in comparison to continental heavyweights like South Africa ($7.5 billion) and Egypt ($12.5 billion).
However, South Africa, the continent’s military powerhouse, with a well-established defence industry exporting weapons to over 50 countries. Ethiopia has invested heavily in its military industry, producing rifles, ammunition, and even drones. Kenya, focuses on assembling and upgrading imported weapons, with plans to expand into domestic production. These nations have little dependency on the Importation of weapons and earn from weapons sales.
Nigeria on the flip side is heavily reliant on imports, primarily from Russia, the United States, and China, which has exposed the nation to vulnerabilities like fluctuating prices, supply chain disruptions, and the whims of geopolitical alliances.
According to a report Nigeria had the fourth highest defence spending budget in Africa in 2023, after Algeria, Egypt, and Morocco, however, Nigeria’s defence spending budget in 2023 was higher than the combined budgets of Kenya, Tunisia, Angola, Uganda, Tanzania, Mali, and Ethiopia, which were the next seven highest defence spenders in Africa.
While, Nigeria’s defence spending budget in 2023 was $1.383 billion, which was 0.97% of its GDP. This was lower than the defence spending budget of Algeria, which was $9.979 billion, or 5.28% of its GDP. Algeria had the highest defence spending budget in Africa and the 23rd highest in the world.
Notably, Nigeria’s defence spending budget in 2023 was lower than the defence spending budget of Egypt, which was $4.357 billion, or 1.22% of its GDP. Egypt had the second-highest defence spending budget in Africa and the 31st-highest in the world.
The road ahead is not without challenges. Fluctuating global prices, supply chain disruptions, and geopolitical alliances can still impact the industry. However, by prioritizing domestic production, diversifying its capabilities, and leveraging partnerships, Nigeria can build a robust defense industry that not only strengthens its own security but also positions it as a regional leader.
