• FG Orders Mandatory Patronage of Defence Industry Corporation
'Seun Ibukun-Oni, Abuja
DAILY COURIER - The Federal Government has mandated all government organizations and agencies to procure military equipment exclusively from the Defence Industry Corporation of Nigeria (DICON) in Kaduna, in a decisive move to bolster Nigeria's self-reliance in military hardware production. This directive was announced by Ibrahim Kana, the Permanent Secretary of the Ministry of Defence, during a press conference in Abuja ahead of DICON's 60th anniversary celebration.
Kana highlighted that the new DICON Act, recently signed into law by President Bola Tinubu, enforces this compulsory patronage. This policy mandates that government agencies must source their military hardware from DICON unless the required items are not available domestically. This initiative is aimed at fostering national development and enhancing national security by leveraging local production capabilities.
A 135% Increase in Defence Budget
This announcement comes on the heels of a significant increase in Nigeria's defense budget over the past five years. Since 2019, the defense budget has surged by 134.8%, from N589.955 billion to a staggering N1.383 trillion in 2023. This dramatic increase reflects the government's commitment to modernizing the military infrastructure and addressing the persistent security challenges facing the nation.
Local Production: Boosting Economy and Security
Kana emphasized the multiple benefits of this policy shift. By mandating local procurement, the government aims to boost foreign exchange earnings through the production of defense equipment within Nigeria. This move is also expected to create jobs for skilled Nigerians, thereby reducing unemployment and fostering economic growth. Moreover, it will help minimize capital flight, ensuring that funds previously spent on foreign procurements are now retained within the country.
Historical Trends and Future Prospects
Nigeria's defense budget has experienced notable fluctuations since 1999, with periods of substantial increases corresponding to heightened security needs and modernization efforts. The early 2000s saw significant investment in restructuring the military post-military rule. Between 2010 and 2014, the budget grew to combat insurgency, particularly from Boko Haram. In 2014, the defense budget stood at approximately N968.127 billion.
From 2015 to 2020, the budget continued to rise, reaching N900 billion in 2020. This period marked significant investments in enhancing the military's capacity to address internal security threats. The trend of increasing budgets persisted, with allocations exceeding N840 billion in 2021 and culminating in N1.383 trillion by 2023.
Challenges and Strategic Implementation
Despite these substantial investments, Nigeria continues to grapple with significant security challenges, including terrorism, insurgency, and banditry. Analysts argue that while increased funding is crucial, the effective utilization of these funds and strategic policy implementation are essential to improving security outcomes.
The new DICON policy represents a strategic shift towards self-reliance and domestic capability enhancement in defense production. As Nigeria continues to navigate its security landscape, this move underscores the government's commitment to leveraging local resources and expertise to build a more secure and self-sufficient nation.
By enshrining transparency and accountability in the procurement process, the government aims to ensure that the substantial investments in defense translate into tangible security improvements for all Nigerians.