Lawmakers Bemoan Security Agencies’ Refusal to Buy Ammunition from DICON, Summon Heads

*Defence agency DG laments 58yr non-upgrade of machines

Udora Orizu in Abuja

The House of Representatives Committee on Defence has frowned at the refusal of security agencies in the country, aside the Nigerian Army, to buy arms and ammunition from the Defence Industry Corporation of Nigeria (DICON).

Consequently, the Committee chaired by Hon. Babajimi Benson (APC, Lagos) resolved to summon heads of security agencies to explain reason for their disobedience to Executive Order 5, which recommends that preference should be given to indigenous companies in government procurement.
The summon followed the disclosure by DICON Director General, Major General HG Tafida, during the agency’s 2023 budget defence.
The Major General had while responding to questions by the lawmakers, said for many years only the Nigerian Army patronises them, in terms of ammunition and other products.

According to him, there’s a perceived notion by most of the security agencies that DICON was only meant for the Army and so they go outside to purchase ammunition and others equipment.
He appealed for DICON’s budget to be jacked up, lamenting that machines installed since the agency’s inception in 1964 have not been upgraded.
The DICON DG said, “So the budget needs to be taken up. The Executive order has permitted DICON to bring in other investors, most especially indigenous ones who can also go into Defence production because government can’t cope with the high cost of machines.

“DICON from its Act was actually designed to produce ammunition for the armed forces of federal republic of Nigeria, including other security agencies. But by error or design, DICON was limited to only provide products to the armed forces and security agencies and not beyond the borders of Nigeria.

“So by so doing, its capacity was limited to just selling in house to our security agencies. If we do that we always calculate their interest not to put them under pressure. Our cost of production is relatively higher when you compare it with the ones imported they are using modern machines that are computerised.
“Private sector participation became necessary; they will now be the back bone of production then we can now export. On the Executive Order 5, for now only the Nigerian Army is patronising us. Even the Army go outside to augment what they get from us, because of the state of the machine.

“Machines installed since 1964 have not been upgraded. So right now the production capacity is about five million instead of 20 million ammunition per year. We have a robust business department that has been going from one service to another but it is true that it’s the capacity. If we have the modern machine, we will be exporting excess.”

In his address, the Committee Chairman, Benson said there was need to first source arms and ammunition locally before going outside.
He also said the parliament would give it a legal tooth compelling all security agencies to buy arms and ammunition from DICON.
The lawmaker however said their 2022 performance would be thoroughly reviewed and 2023 proposal painstakingly scrutinised before making conclusions.
Benson said, “For instance, in 2021, the Brazilian defence industry saw a surge in its export reaching an all-time high of $1.35 billion. A large amount of this came from the government-owned defence industries.

“Today Brazil and other Middle Income Countries (MICs) compete favourably with several world powers in the defence sector. This Committee is convinced that if DICON effectively leverages on the provisions of Executive Order 5 which recommends that preference should be given to indigenous companies in government procurement, the agency will be self-sufficient and generate adequate revenue to fully fund its activities.

“We are dissatisfied that, so far, only the Nigerian Army patronises DICON. We believe that the DICON management must explore avenues of expanding its scope and drawing larger patronage from more agencies both in the public and private sector.

“Indeed, there is room for more and better achievements. Let me conclude by reiterating the 9th House of Representatives’ continued resolve to ensure a peaceful, secure and prosperous country for all Nigerians.”

Thereafter, a member of the Committee Hon. Taofeek Ajilesoro (PDP-Osun) moved the motion to summon heads of security agencies.