Nigeria and Indonesia have signed agreements to promote defence equipment manufacturing in Nigeria and expand bilateral trade to at least $6bn annually.
The agreements provide for the representation of Indonesian state-owned defence manufacturer PT Pindad in Nigeria, with plans for local production of military equipment in collaboration with the Defence Industries Corporation of Nigeria (DICON).
The documents were signed on Friday during the 41st Trade Expo Indonesia in Jakarta by a Nigerian delegation led by Uchenna Okonkwo, Deputy Chairman of the House of Representatives Committee on the National Agency for Food and Drug Administration and Control.
Okonkwo said the partnership could help address equipment shortages facing Nigeria’s armed forces while strengthening the country’s domestic defence manufacturing capacity.
He explained that cooperation with PT Pindad would cover the production of ammunition, military vehicles and other defence equipment, alongside training for Nigerian personnel on how to operate the equipment.
According to the lawmaker, developing local manufacturing capabilities is important to Nigeria’s efforts to tackle insecurity and improve the operational readiness of its armed forces.
Beyond defence, the Nigerian delegation also held discussions with Indonesian government officials and private-sector representatives on opportunities to increase trade and investment between the two countries.
Okonkwo said both nations were working towards raising their annual trade volume to at least $6bn, although he did not state the current value of bilateral trade.
He added that stronger business cooperation, greater transparency and improved access to market information would be necessary to achieve the target.
The lawmaker also identified difficulties with cross-border payments as an obstacle raised by Indonesian stakeholders seeking to do business with Nigeria.
He proposed the establishment of a digital payment platform connecting businesses in both countries to simplify transactions for importers and exporters.
Okonkwo suggested that Nigerian fintech companies, including Paystack and Moniepoint, could provide useful models for developing a system that would enable businesses to make payments and receive funds more efficiently.
He said the initiative could involve the Central Bank of Nigeria, commercial banks and potential Indonesian partners, with support from the Nigerian-Indonesian Business Group.
The lawmaker added that closer economic ties could attract foreign direct investment, support domestic industries and create new business opportunities.
The 41st Trade Expo Indonesia brings together exporters, investors and buyers across sectors such as manufacturing, agriculture, food and beverages, and services.
The proposed defence manufacturing partnership and digital payment initiative form part of broader efforts by Nigeria and Indonesia to strengthen industrial cooperation and expand commercial relations.
