When Nigerian drone startup Terra Industries outbid an Israeli consortium to secure a $1.2 million contract to protect hydropower facilities in June 2025, it appeared to signal a turning point for indigenous defence technology. However, the deal also exposed a deeper paradox shaping Nigeria’s security future, where technical capability exists, but capital and policy quietly determine how far it can go.
Fatai Babatunde, an emerging technologies and innovation strategist in Africa, recently analysed the implications of Terra Industries’ success. He argues that while the contract is a testament to Nigeria’s growing technical prowess, it also highlights the systemic challenges that could hinder long-term progress.
“This is not a story about the triumph of local innovation over foreign competition,” Babatunde said. “It’s about the delicate balance between technical capability, financial investment, and policy support.”
Terra Industries’ victory underscores Nigeria’s potential to become a significant player in the global defence technology market. The company’s ability to outbid an established Israeli consortium demonstrates a high level of technical expertise and innovation. Yet, Babatunde warns that without sustained investment and supportive policies, such successes may remain isolated incidents rather than the beginning of a broader industrial shift.
“The challenge for Nigeria is to translate this momentary success into a sustainable advantage,” Babatunde explained. “We need to see more than just one-off victories. We need a robust ecosystem that nurtures innovation, attracts investment, and aligns with strategic policy objectives.”
The hydropower facility contract is a critical milestone, but it also serves as a reminder of the broader context in which Nigerian defence technology operates. The sector faces significant hurdles, including limited access to capital, regulatory uncertainties, and competition from well-established international players.
Babatunde’s analysis suggests that for Nigeria to fully capitalise on its technical capabilities, it must address these systemic issues. This includes creating a favourable investment climate, fostering public-private partnerships, and developing clear, long-term policies that support the growth of indigenous defence technologies.
“Capital and policy are the invisible hands that shape the trajectory of technological advancement,” Babatunde said. “Without them, even the most innovative solutions can falter.”
As Nigeria continues to navigate its security challenges, the story of Terra Industries offers both hope and a cautionary tale. It highlights the potential of local innovation but also the need for a supportive environment that can turn isolated successes into a sustainable industry.
The contract win by Terra Industries is a significant achievement, but it is only the beginning. The real test lies in whether Nigeria can build on this momentum and create an ecosystem where technical capability, capital, and policy work in harmony to secure a brighter, more secure future.