(2023)
SECTION 1
The objectives of this Act are to –
(a) strengthen the legal and institutional framework for the operation, maintenance and control of subsidiaries and ordnance factories for the manufacture, storage and disposal of ordnance and ancillary stores and material; and
(b) regulate and ensure improvement in local production of weapons and other equipment to meet the requirements of the Nigeria Armed Forces and other security agencies, to reduce reliance on foreign suppliers, and develop local capabilities and standardisation through research and development in the defence industry.
Objectives.
SECTION 2
This Act applies throughout the Federal Republic of Nigeria.
Application.
SECTION 3
(1) There is established the Defence Industries Corporation of Nigeria (“the Corporation”).
(2) The Corporation shall be a holding company, wholly state-owned, with equity of varying degrees in several defence and aerospace subsidiaries and associated companies.
(3) The Corporation-
(a) shall be a body corporate with perpetual succession, a common seal;
(b) may sue and be sued in its corporate name; and
(c) may own, acquire or dispose of property, whether movable or immovable, for the purpose of performing its functions under this Act.
Establishment of the Defence Industry Corporation of Nigeria.
SECTION 4
(1) There is established for the Corporation, a Governing Board (“the Board”) which shall consist of the-
(a) Chairman, who shall be the Minister;
(b) Permanent Secretaries or representative of the Federal Ministries responsible for- (i) Industry, Trade and Investment, (ii) Finance, (iii) Science and Technology, (iv) Interior, and (v) Foreign Affairs;
(c) Chief of Defence Staff;
(d) Chief of Army Staff;
(e) Chief of Naval Staff;
(f) Chief of Air Staff;
(g) Inspector General of police;
(h) Director-General of the Corporation;
(i) representative of the Defence Industry Association of Nigeria; and
(j) Permanent Secretary of the Ministry responsible for Defence, who shall be Secretary.
(2) Where a member of the Board is appointed as a representative under subsection (1) (b) or (i), the member may be replaced by the Permanent Secretary of the relevant Ministry or the Association respectively.
(3) The supplementary provisions set out in the Schedule to this Act shall have effect with respect to the proceedings of the Board and other matters mentioned in it. [Schedule]
Governing Board of the Corporation.
SECTION 5
The Chairman and members of the Board shall be paid such emoluments, allowances and benefits as may determined by extant rules and directed by the Federal Government.
Emolument, allowances and benefits of members.
SECTION 6
The Board shall have power to-
(a) formulate policy guidelines for the management of the affairs of the Corporation;
(b) appoint, promote, terminate, dismiss and exercise disciplinary control over the principal officers and senior staff of the Corporation;
(c) structure the Corporation into such number of departments as it deems fit for the effective performance of the functions of the Corporation;
(d) ratify the appointment or extension of the appointment of contract officers of management levels, managing agent and external auditor for the Corporation and any other appointment above the management of the Corporations;
(e) approve the external auditor’s professional fee; and
(f) do such other things which the Board may consider necessary and desirable for the effective performance of its duties under this Act.
Powers of the Board.
SECTION 7
(1) The Corporation shall-
(a) be charged with the operation, maintenance and control of ordnance factories for the manufacture, storage and disposal of materiel intended for or capable of being used by the armed forces, other security agencies and such other forces or persons as may be authorised;
(b) be charged with the inspection and testing, as the case may be, of ordnance, materiel and explosives;
(c) be charged with capacity building in military technology;
(d) collaborate with local and international bodies for the purpose of research development, and technology advancement in the defence industry;
(e) develop, utilise, market and export normal and advanced military technologies;
(f) complement the civil non-defence technological needs of Nigeria, where possible;
(g) initiate and manage technological projects required in actualising the objectives or responsibilities of the Corporation;
(h) support and maintain any defence industrial capabilities, resources and technologies designated by the Ministry as strategic and essential for the national defence needs of Nigeria;
(i) coordinate, harmonise and supervise the general planning of defence and allied industries specifically or mainly set up to produce for the armed forces and other security agencies and encourage other industries within the economy to produce for the general consumers, the armed forces and other security agencies, where the need arises;
(j) establish and monitor programmes and plans for giving effect to any policy, direction and recommendation of the Minister;
(k) collaborate with all the armed forces production units, research and development outfits, allied companies in partnership with armed forces and other local industries involved in military hardware and software production for the actualisation and establishment of military industrial complex;
(l) develop and embark on reverse engineering of sophisticated systems for military applications;
(m) monitor current technological trends as well as anticipated future advances by articulating technology domestication process in relation to defence industry;
(n) have power to purchase military industrial licences from advanced nations with strong and formidable defence industries and Military Industrial Complex (MIC);
(o) initiate and consolidate the co-production of strategic military hardware with advanced countries;
(p) train managerial, technical and such other staff for the purpose of running of its operations; and
(q) perform such other duties as specified under this Act.
(2) Without prejudice to the functions and powers of the Corporation under subsection (1), the Corporation shall have power to establish or acquire any factory or manufacturing industry which shall be used as an ordnance factory or ancillary factory including vehicles factory, small arms factory, electronic factory, ordnance equipment factory, ordnance clothing factory, heavy vehicle factory, ammunition factory, cordite factory, field-gun factory, gun carriage factory, grey iron factory, gun and shell factory, heavy alloy and penetrator factory, heavy vehicle factory, machine tool prototype factory, metal and steel factory, and any other defence related factory.
(3) The Corporation may-
(a) enter into contracts in form of joint venture partnerships or collaborations; and
(b) establish joint venture companies.
(4) Any contract entered into by the Corporation under subsection (3) shall only be monitored, controlled, evaluated, supervised and regulated by the President or through the Minister.
Functions and powers of the Corporation.
SECTION 8
(1) The Corporation shall operate ordnance factories and subsidiaries under its control, to be headed by managing directors who shall be responsible to the Corporation, where the Corporation is the core investor in the subsidiary.
(2) The ordnance factories and subsidiaries referred to in subsection (1) shall operate on a sound commercial basis to-
(a) fill the normal defence requirements of the Nigerian Armed Forces and other security agencies; and
(b) meet requests from other countries as may be approved by the Government of Nigeria.
(3) Where there is any surplus capacity in the operations of the ordnance or subsidiary factory, the Director-General shall advise the Minister and the Minister, with the approval of the President, may direct that such surplus capacity be adapted where necessary and be used towards meeting the civilian needs of Nigeria.
Operation of ordnance factories.
SECTION 9
(1) The Board shall have power to set up subsidiaries in partnership with local and international companies towards meeting the materiel needs of the armed forces and other security agencies through wholesale ownership or acquiring equities in enterprises with relevant products.
(2) Where the Corporation has controlling shares and is the core investor, the subsidiary shall be responsible to the Corporation.
(3) Where the Corporation does not hold the controlling share in a subsidiary, the subsidiary shall be independent of the Corporation, provided that it continues to operate in accordance with the provisions of the law and generates return on investment to the Corporation.
(4) The subsidiaries shall have-
(a) a board consisting of a representative of the Corporation as member; and
(b) an executive management team in the subsidiaries taking charge of the business.
Establishment of subsidiary companies.
SECTION 10
(1) Where the ordnance factories under the Corporation’s control are capable of producing and supplying the armament requirements of the armed forces and other security agencies, the Corporation shall have the exclusive preserve to produce and make such supplies.
(2) The armed forces, police and other security agencies authorised to possess and use weapons or other items categorised as defence items shall-
(a) purchase weapons or defence items from the Corporation; or
(b) from other licensed manufacturers or distributors, where the Corporation is unable to supply the items.
(3) Subject to the provisions of the Explosives Act and any other relevant law, the Corporation shall have exclusive right of purchase, manufacture and sale of explosives. [Cap. E17, LFN, 2004]
Exclusive right to produce and supply arms and ammunition in Nigeria.
SECTION 11
(1) There is established for the Corporation a Defence Procurement Committee (in this Act referred to as the Committee) which shall consist of the-
(a) Permanent Secretary of the Ministry of Defence as the Chairman;
(b) a representative of the- (i) Office of the National Security Adviser, (ii) Ministry of Defence, (iii) Ministry of Interior;
(c) Chief of Defence Staff;
(d) Chief of Army Staff;
(e) Chief of Naval Staff;
(f) Chief of Air Staff;
(g) Inspector General of Police; and
(h) Director-General of the Corporation; and
(i) Director of Public Procurement of the Ministry of Defence as the Secretary.
(2) Where the Corporation and licences under this Act are not able to meet the material requirements of the armed forces and other security agencies, the Committee shall have powers to-
(a) consider and approve procurement related to the importation of defence and material equipment; and
(b) facilitate the importation, through the Corporation, defence items to be used by the armed forces and other security agencies.
(3) A defence item shall not be imported for and on behalf of the Armed forces and other security agencies without the prior approval of the Committee.
Establishment of Defence Procurement Committee.
SECTION 12
(1) The armed forces and other security agencies shall, at the end of every fiscal year, submit to the Corporation for data storage all its actual and speculated defence requirements.
(2) Data collected and stored under subsection (1) shall form the Defence Industries Data Bank for the Corporation.
Defence Industries Data Bank.
SECTION 13
(1) The Corporation shall take such measures as are necessary for the safeguarding and protection of-
(a) information, records and property of, or under the control of the Corporation; or
(b) any premises where the activities of the Corporation are being performed.
(2) Where the Corporation takes any measure specified in subsection (1), it shall cause a notice to be published or such warnings to be erected as may, in each case, be necessary to notify the public of any danger or harm which may be caused by such measure.
Safeguarding of information, records, property and premises.
SECTION 14
(1) The President shall, on the recommendation of the Minister, appoint a Director- General of the Corporation, who shall be a serving or retired military officer, not below the rank of a Brigadier General or its equivalent, with experience in engineering and armament.
(2) The Director-General shall be the chief executive and accounting officer of the Corporation and shall be responsible for the-
(a) day to day running of the Corporation;
(b) executive control over other staff of the Corporation;
(c) supervision of accounts and records; and
(d) preparation for approval of sectional programmes and plans necessary to carry into effect approved policy or any directions of the Corporation.
Appointment and powers of the Director- General.
SECTION 15
(1) The Director-General shall hold office for a single tern of four years in the first instance and may be renewable for another term of four years and no more.
(2) Nothing in this Act shall prevent a serving Director-General from completing his tenure of office notwithstanding his retirement from the armed forces of Nigeria before the end of his tenure, whichever is applicable.
(3) Notwithstanding the provisions of subsection (1), the Director-General, on the recommendation of the Minister, may be suspended or removed from office by the President if he-
(a) has demonstrated inability to effectively perform the duties of his office;
(b) is guilty of serious misconduct in relation to his duties as Director-General;
(c) is guilty of conflict of interest in the discharge of his duties;
(d) becomes of unsound mind or, owing to ill health, is incapable of discharging his duties;
(e) is convicted of any criminal offence by a court of competent jurisdiction, except for traffic offences or contempt proceedings arising in connection with the execution or intended execution of any power or duty conferred under this Act or any other law;
(f) becomes bankrupt; or
(g) is removed by the President in the interest of the public.
Tenure of the Director-General.
SECTION 16
(1) Subject to the provisions of this section, the Corporation may, with the approval of the Board, appoint directly or on secondment or transfer from the public service, such staff as it considers necessary-
(a) for the effective discharge of its functions under this Act; and
(b) on such terms and conditions as may be specified by the Corporation.
(2) The secondment of a public servant to the Corporation under subsection (1) shall not affect the pension rights which, but for the secondment, may accrue or become due, owing and payable to such public servant.
(3) A person seconded to the Corporation may elect to transfer his service to the Corporation, and any previous service in the public service of the Federation shall count as service for the purposes of any pension subsequently payable.
(4) Where any member of the public service is transferred to the Corporation, his former service with the public service of the Federation shall be taken into account in any computation prescribed in the Pension Reform Act. [Act No. 4, 2014]
Staff of the Corporation.
SECTION 17
(1) Service in the Corporation shall be subject to the provisions of the Pension Reform Act and staff of the Corporation shall be entitled to pension and other retirement benefits as prescribed under the Pensions Reform Act. [Act No. 4, 2014]
(2) Without prejudice to the provisions of subsection (1), nothing in this Act shall prevent the appointment of a person to any office on conditions which preclude the grant of a pension, gratuity or other retirement benefits in respect of that office.
(3) For the application of the provisions of the Pension Reform Act, any power exercisable by a Minister or other authority of the Government other than the power to make regulations under the Pension Reform Act is vested in and shall be exercisable by the Board and not by any other person or authority.
Service in the Corporation.
SECTION 18
Subject to the provisions of this Act, the Corporation may, with the approval of the Board, make staff regulations relating generally to the conditions of service of the staff, and such regulations may provide for-
(a) the appointment, promotion, and disciplinary control of staff of the Corporation; and
(b) appeals by staff against dismissal or other disciplinary measures and until such regulations are made any instrument relating to conditions of service in the Public Service of the Federation shall be applicable, with such modifications as may be necessary, to the staff of the Corporation.
Staff regulations and discipline.
SECTION 19
(1) Subject to the provisions of the Firearms Act, the Corporation shall be responsible for issuing licenses to manufacturers, distributors, sellers and persons involved in leasing of defence articles in Nigeria. [Cap. F28, LFN, 2004]
(2) The Minister shall make regulations for licensing and regulation of the manufacture, distribution, sale and lease of defence articles.
(3) Defence items shall be items included in a list issued by the Minister.
(4) Regulations made under this section shall specify offences and penalties for non-compliance and other requirements for licensing, including licensing fees and levies to be charged by the Corporation.
Regulation and licensing of manufacturers of defence articles.
SECTION 20
Items produced by private manufacturers under this Act shall be offered first to the Corporation for purchase, and where the Corporation issues a notice of non-purchase, the manufacturer shall be entitled to sell the items domestically or export the defence items in accordance with the provisions of relevant laws and regulation.
Items produced by private manufacturers.
SECTION 21
(1) There is established a fund for the corporation (“the Fund”) into which shall be credited-
(a) budgetary allocation by the National Assembly;
(b) money provided by the Government for the acquisition of relevant defence production capabilities, including missile and aerospace technology;
(c) money received from the process of any sale, hire or any of the services rendered by the Corporation; and
(d) money as may accrue from such other sources consistent with the objectives and functions of the Corporation.
(2) The Fund established under subsection (1) shall be applied-
(a) to the advancement of the objectives of this Act;
(b) to the cost of administration of the Corporation;
(c) for the development and maintenance of any property vested in or owned by the Corporation; and
(d) for any other expenditure in connection with any of the functions of the Corporation under this Act.
Funds of the Corporation.
SECTION 22
(1) There is established a Research and Development Fund for the Corporation into which shall be credited five percent of the amount of every procurement made directly from the Corporation or other vendors, by each of the armed forces and other security agencies.
(2) The five percent referred to in subsection (1) shall be deducted at source and credited to the Research and Development Fund on every transaction within 30 days from the date of purchase.
(3) Where any contribution is not paid within the time specified in subsection (2), a sun equal to 10% of the unpaid sun shall be added for each month or part of a month after the date on which payment should have been made.
(4) The Research and Development Fund established under this section shall be applied for-
(a) research and development consistent with the objectives of this Act and functions of the Corporation;
(b) building in military technology; and
(c) local and international collaboration in research and development including science and technology consistent with the objectives of this Act and functions of the Corporation.
Research and Development Fund of the Corporation.
SECTION 23
(1) The Corporation shall, not later than 30 September in each financial year prepare and present to the Minister for approval, a statement of estimated income and expenditure for the following financial year.
(2) The Corporation shall keep proper accounts in respect of each year and proper records in relation to those accounts and shall cause its accounts to be audited within six months after the end of each year by auditors appointed from the list and in accordance with the guidelines supplied by the Auditor – General for the Federation.
Annual estimates and accounts.
SECTION 24
The Corporation shall prepare and submit to the Minister, not later than 30 June in each year, a report on the activities of the Corporation during the preceding year, and shall include in the report a copy of the audited accounts of the Corporation for that year and of the auditor’s report on it.
Annual reports.
SECTION 25
(1) The Corporation may accept gifts of land, money, or other property on such tens and conditions, as may be specified by the person or organisation making the gift.
(2) The Corporation shall not accept any gift if the conditions attached by the person or organisation making the gift are inconsistent with the functions of the Corporation under this Act.
Power to accept gifts.
SECTION 26
Subject to extant laws, regulations and policies, the Corporation, with the approval of the Minister, may borrow by way of loan, overdraft or otherwise from institutional sources, such sums as it may require in the performance of its functions under this Act.
Power to borrow.
SECTION 27
(1) There is established the Defence Industry Corporation of Nigeria Technology, Research and Development Institute (“the Institute”).
(2) The Institute shall be under the general control and management of the Corporation.
Establishment of Technology, Research and Development Institute.
SECTION 28
The objectives of the Institute are to-
(a) create a solid scientific and research foundation for Nigeria’s defence industry;
(b) leverage basic research from military research institutes for applied research that leads to commercialisation; and
(c) develop military technology and capacity building through research.
Objectives of the Institute.
SECTION 29
The functions of the Institute include-
(a) provision of courses of instruction, training and research in the production of arms, ammunition and other military equipment;
(b) engagement in the training of skilled engineers, technologists and technicians, to a minimum of National Diploma level, required for the production of arms, ammunition and other military equipment; and
(c) such other functions as may be necessary for carrying out the objectives of the Institute.
Functions of the Institute.
SECTION 30
(1) There shall be for the Institute, a Director who shall be appointed by the Board.
(2) The Director shall-
(a) possess a minimum of a Doctorate Degree in a relevant discipline with demonstrable research experience;
(b) be responsible for the daily administration and general management of the Institute; and
(c) be appointed on such terms and conditions as may be specified in his letter of appointment.
Appointment of Director of the Institute.
SECTION 31
The Board may appoint for the Institute such technical and non-technical staff as may be necessary for performing the functions of the Institute.
Staff of the Institute.
SECTION 32
The Institute shall maintain a fund for the running of the Institute, which shall consist of-
(a) such money allocated to the Institute through the Corporation’s budget;
(b) money from the services rendered by the Institute;
(c) foreign aid, grants and assistance from government or non-governmental donor agencies; and
(d) all other money which may accrue to the Institute.
Fund of the Institute.
SECTION 33
The Corporation shall be exempted from the payment of import and excise duty on military hardware, uniforms, service accoutrements, explosives, arms and ammunitions, imported for use by members of the armed forces and other security agencies.
Exemption from payment of some import and excise duty.
SECTION 34
The Corporation and its wholly-owned subsidiaries and affiliates shall be exempted from the provisions of any and all taxes, fees, imports or similar fiscal laws or Regulations of the Federal, State, Local Government of Nigeria, including the Companies Income Tax Act, the Capital Gains Tax Act, the Stamp Duties Act, the Value Added Tax Act. [Cap. C21, LFN, 2004; Cap. C1, LFN, 2004; Cap. S8, LFN, 2004; Cap. V1, LFN, 2004]
Exemption from the application of some Acts.
SECTION 35
(1) Nothing in the Fireams Act shall be construed to preclude the Corporation from- [Cap. F28, LFN, 2004]
(a) importation of any firearm or ammunition as defined in the Firearms Act; or
(b) manufacture, assembly, repair, or disposal of any such firearm or ammunition in the ordnance factories.
(2) An ordnance factory under the control of the Corporation shall, for the purposes of the Firearms Act, be deemed to have been recognised as a public armoury and the fireams and ammunition therein may be held by the Corporation for such period as it thinks fit.
Restricted application of Fireams Act.
SECTION 36
For the purposes of the application of the Factories Act-
(a) an ordnance factory may not require registration; and [Cap. F1, LFN, 2004]
(b) powers of entry and inspection shall be exercisable during the hours of day and at such time or times as may be convenient to the Director-General, after taking into consideration the nature of the work, or the part of the ordnance factory to be inspected.
Application of Factories Act.
SECTION 37
(1) A person employed by the Corporation in any capacity, and whether or not a member of a trade union, shall not engage or take part in any form of strike.
(2) A person who contravenes the provisions of subsection (1) commits an offence and is liable on conviction to a fine of at least N200,000 or imprisonment for a term of at least six months or both.
Taking part in any strike.
SECTION 38
An employee or member of the Board of the Corporation who fails to make disclosure under this section commits an offence and is liable on conviction to a fine of at least N500,000 or imprisonment for a tern not exceeding three years or both.
Non-Compliance with conflict of interest requirement.
SECTION 39
A person who contravenes the provisions of any regulations made under this Act commits an offence and is liable on conviction to the penalty prescribed under the regulations.
Penalties for non-compliance with regulations.
SECTION 40
(1) The Minister may give directives of a general or special nature to the Corporation in relation to the functions and powers of the Corporation under this Act, and it shall be the duty of the Corporation to give effect to such directives.
(2) Any policy guidelines initiated by the Corporation shall not be implemented without the prior approval of the Minister, and the Minister may, where necessary, consult with the Corporation before approving a policy guideline.
Directives of the Minister.
SECTION 41
The Corporation shall where necessary, apply for and obtain intellectual property protection for all of its works, inventions and property from the relevant government agency or body.
Intellectual property protection.
SECTION 42
The Corporation shall collaborate with the Defence Industry Association of Nigeria and any other relevant association recognized by the Minister for the purpose of-
(a) supporting and improving local production of weapons and other equipment for the Nigeria Armed Forces, in line with the objectives of the Nigeria’s Military Industrial Complex; and
(b) reducing reliance on foreign suppliers, and developing local capabilities and standardisation in the defence industry.
Defence industry association.
SECTION 43
(1) Members of the Board, Director-General and other staff of the Corporation shall take oaths in relation to secrecy and other matters as the Minister may direct.
(2) An employee of the Corporation or a member of the Board shall-
(a) disclose to the Board any direct or indirect interest that such employee or Board member, or his or her spouse, partner or family member may have in any matter relating to the acquisition or procurement activities of the Corporation; and
(b) withdraw from participation in the activity in question unless the Board decides that the interest is trivial or irrelevant.
(3) An employee of the Corporation or a member of the Board who has any interest in any company or concern with which the Corporation proposes to enter any contract or have any interest in such contract, shall disclose the fact and nature of such interest to the Corporation, and such disclosures shall be recorded.
(4) A member having the interest referred to in subsection (3) shall not take part in any deliberation or decision of the Corporation relating to such contract.
Conflict of interest.
SECTION 44
(1) Subject to the provisions of this Act, the provisions of the Public Officers Protection Act shall apply in relation to any suit instituted against any member, officer, or employee of the Corporation. [Cap. P41, LFN, 2004]
(2) Notwithstanding anything contained in any other law or enactment, no suit against the Director-General, a member of the Board, or any other officer or employee of the Corporation, for any act done under or in execution of this Act or any other law, enactment, or of any public duty or authority or in respect of any alleged neglect or default in the execution of this Act or any other law or enactment, duty of authority, shall lie or be instituted in any court unless it is commenced-
(a) within three months next after the act, neglect or default complained of; or
(b) in the case of continuation of damage or injury, within six months next after the ceasing thereof.
(3) A suit shall not be commenced against the Director-General, a member of the Board or any other officer or employee of the Corporation before the expiration of a period of one month after written notice of the intention of commence the suit shall have been served on the Corporation by the intending plaintiff or his agent.
(4) The notice referred to in subsection (3) shall clearly state the-
(a) cause of action;
(b) particulars of claim;
(c) name and place of abode of the intending plaintiff; and
(d) relief which he claims.
(5) A notice, summons or other document required or authorised to be served on the Corporation under the provisions of this Act or any other law or enactment may be served by delivering it to the Director-General or by sending by registered post addressed to the Director-General at the principal office of the corporation.
Limitation of suits against the Corporation.
SECTION 45
(1) The Minister shall have powers to make regulations for the purposes of giving effect to the provisions of this Act.
(2) Notwithstanding the provisions of subsection (1), the Corporation may, with the approval of the Minister, make regulations-
(a) for regulating the procedure for the activities of the Corporation other than at meetings; or
(b) for prescribing danger zones within or outside the ordnance factories.
Regulations.
SECTION 46
The Defence Industries Corporation of Nigeria Act Cap. D4 Laws of the Federation of Nigeria, 2004 is repealed.
Repeal.
SECTION 47
(1) The power, duties and functions of the Defence Industries Corporation of Nigeria established under the Defence Industries Corporation of Nigeria Act Cap, D4 Laws of the Federation of Nigeria, 2004 (“the repealed Act”) is transferred to the Defence Industries Corporation of Nigeria established under this Act.
(2) Anything made, done or having effect under the repealed Act and having any resulting or continuing effect shall be treated as from the commencement of this Act, as if it were made or done by the Corporation established under this Act.
(3) Any person who before the commencement of this Act, was appointed or employed by the Corporation established under the repealed Act shall continue in office and be deemed to have been appointed or employed by the Corporation under this Act.
(4) All assets, rights, liabilities and obligations of the Corporation under the repealed Act shall, by virtue of this Act, be deemed to be that of the Corporation established under this Act.
Savings and transitional provision.
SECTION 48
In this Act- “armed forces” means the army, navy and air force of Nigeria; “building” includes fixtures, and any plant, machinery and office furniture supplied or to be supplied under any contract, and whether or not affixed or intended to be affixed to the land; “Corporation” means the Defence Industries Corporation of Nigeria established under this Act; “explosives” includes grenades, bombs, slurry, jelly, anmonium nitrate etc; “Institute” means DICON Technology, Research and Development Institute (DTRI); “materiel” includes any armament, ammunition and equipment; “Minister” means the Federal Minister charged with responsibility for defence; “ordnance factories” means public establishment for the manufacture, storage and disposal of ordnance and ancillary stores and materiel intended for or capable of being used by the armed forces, and includes the manufacture of any other thing that may be approved under this Act; “security agencies” include, Nigeria Police Force, Nigerian Customs Service, Nigerian Immigration Service, State Security Service, Nigeria Correctional Service, National Drugs Law Enforcement Agency, Nigerian Security and Civil Defence Corps, and Defence Intelligence Agency; “President” means the President of the Federal Republic of Nigeria; “service accoutrements” includes textile and ancillary materiel used by the armed forces and other security agencies; “special purpose goods” means any object of armament, ammunition, mechanical, electrical equipment or other military hardware needed by the Armed Forces or Police Forces as well as other security agencies; and “subsidiaries” means factories under the Corporation in which the Corporation has core investment.
Interpretation.
SECTION 49
This Act may be cited as the Defence Industries Corporation of Nigeria Act, 2023.
Citation.
Section 4(3)
SUPPLEMENTARY PROVISIONS RELATING TO THE PROCEEDINGS OF THE BOARD OF THE CORPORATION
Proceedings of the Board
1. (1) Subject to this Act and the provisions of section 27 of the Interpretation Act, Cap. I23, Laws of the Federation of Nigeria, 2004, the Board shall have the power to regulate its proceedings and may make standing orders with respect to the holding of its meetings, and those of its committees, the notice to be given, the keeping of minute of its proceedings, the custody of such minutes and such other matters as the Board may determine.
(2) Every meeting of the Board shall be presided over by the Chairman and if the Chairman is unable to attend a meeting, a deputy chairman shall preside over the meeting and if absent, the most senior member present at the meeting shall preside.
(3) The quorum at a meeting of the Board shall be at least two-thirds of the total number of the Board members.
(4) The Board shall for the purpose of this Act, meet at least two times each year.
(5) Subject to the provisions of subparagraph (4), the Board shall meet-
(a) whenever it is summoned by the Chairman; and
(b) if required to do so by notice given to him by not less than one-third of members, within seven days from the date in which the notice is given.
(6) If for any reason the Chairman fails to convene a meeting, the Minister may convene the meeting.
(7) The first Board meeting of the Corporation shall be convened and held at such place as the Minister may nominate, and any subsequent meeting shall be convened by the Chairman.
(8) Where the Board desires to obtain the advice of any person on any particular matter, the Board may co-opt the person to the Board for such period as it deems fit, but a person co-opted under this paragraph shall not be permitted to vote at any meeting of the Board and shall not count towards a quorum.
(9) Subject to the provisions of this paragraph, in the case of equality of votes, the Chairman shall also have a casting vote.
Committees
2. (1) Subject to its standing orders, the Board may appoint such number of standing or ad-hoc committees as it thinks fit on any matter with which the Board is concerned.
(2) Where standing orders provide for committees other than of members of the Board, or comprising partly members and partly persons co-opted for the purpose, they may advise the Corporation on matters referred to it by the Corporation, but no person shall be co-opted from outside the Corporation in matters relating to defence.
(3) The quorum of any committee set up by the Board shall be determined by the Board.
(4) The decision of any committee of the Board shall constitute a recommendation to the Board, and it shall not be effective except approved by the Board.
Miscellaneous
3. (1) The affixing of the Seal of the Corporation shall be authenticated by the signature of the Director-General and the Legal adviser.
(2) Any document purporting to be a contract, instrument or document duly signed or sealed on behalf of the Corporation shall be received in evidence and shall unless the contrary is proved, be presumed without further proof to have been signed or sealed.
(3) The validity of any proceedings of the Board or any of its committees shall not be affected by-
(a) any vacancy in the membership of the Board, or committee; or
(b) the reason that any person not entitled to do so took part in the proceedings of the Board or committee.
(4) A member of the Board or of a committee who has a personal interest in any contract or arrangement entered into or proposed to be considered by the Board or committee shall disclose his interest to the Board or committee and shall not vote on any question relating to the contract or arrangement.
(5) A member of the Board shall not be personally liable for any act or omission done or made in good faith while engaged in the business of the Board.
