The Defence Industries Corporation of Nigeria (DICON) has signed a Memorandum of Understanding (MoU) with Oida Energy Limited to set up Nigeria’s first oilfield shaped charge manufacturing facility. The deal, which was sealed at the Armed Forces Officers’ Mess & Suites in Abuja over the weekend, is being described as a major breakthrough for local content, energy security, and industrial growth in the country.
Shaped charges, also known as perforating charges, are small but highly specialized explosives used in oil drilling operations. They are designed to punch precise holes through steel well casings and surrounding rocks, creating channels that allow crude oil and natural gas to flow from underground reservoirs into the wellbore for production. These devices are critical to petroleum exploration and production but have been largely imported into Nigeria for decades at very high cost.
The agreement was signed in the presence of top government officials and industry stakeholders, including the Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mr Gbenga Komolafe; the National Security Adviser, Mallam Nuhu Ribadu; directors of DICON; and executives of Oida Energy Limited. The Nigerian Content Development and Monitoring Board (NCDMB), under the Ministry of Petroleum Resources, also played a key role in facilitating the partnership.
Speaking at the event, the Director-General of DICON, Major General Babatunde Alaya, said the partnership is a decisive step towards reducing Nigeria’s dependence on foreign technology and imported explosives. He noted that the project would create new jobs, promote technology transfer, and save foreign exchange for the country. “This agreement marks a turning point in Nigeria’s efforts to build indigenous capacity in sensitive and strategic technologies. The facility will guarantee safe and reliable charges for upstream petroleum operations while deepening our industrialisation agenda,” he said.
For decades, Nigeria’s oil and gas sector has relied on imports of perforating charges and other explosive devices used in petroleum exploration. This dependence has not only increased production costs but has also put pressure on Nigeria’s foreign reserves. The new facility is expected to significantly cut import costs and improve security around the supply of oilfield explosives.
Oida Energy Limited, a local oil and gas service company, will be leading the technical and operational aspects of the new plant. Its Managing Director, Mr Emeka Ene, assured that the company is fully committed to global standards. He stated: “We are committed to delivering world-class local manufacturing solutions that will strengthen Nigeria’s energy and security value chains. This facility will demonstrate that Nigerian companies can lead in specialized areas of the petroleum industry.”
The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, was also praised by the parties for providing the policy framework and support that enabled the project. The MoU represents growing collaboration between Nigeria’s defence sector, regulators, and the private industry in building self-reliance in critical technologies for the oil and gas industry.
Industry watchers say this move is in line with Nigeria’s broader industrialisation and local content policies, which seek to retain more value from oil and gas operations within the country. The Nigerian Content Development and Monitoring Board (NCDMB) has long pushed for more local participation in oilfield technology, manufacturing, and services.
The new partnership between DICON and Oida Energy therefore comes at a time when Nigeria is working to diversify its economy, improve national security, and ensure that petroleum resources provide maximum benefits to the local economy. By producing shaped charges locally, Nigeria will also strengthen its energy supply chain and reduce potential risks associated with importing sensitive explosives from abroad.
This project highlights how the convergence of defence, energy, and private sector innovation can help Nigeria achieve its goals of self-sufficiency, technology transfer, and sustainable development. It also sends a strong message that Nigeria is serious about building indigenous capabilities in areas that are both economically important and strategically sensitive.
