South Africa's Denel to take over defence firm

Nigeria's military authorities are considering proposals by South African weapons firm Denel Pty Limited to take over management of Defence Industries Corporation of Nigeria (DICON) under a joint venture arrangement, officials said on Monday. A senior Nigerian Defence Ministry official, confirming a report by 'The Guardian' newspaper on Sunday, told IRIN that Denel submitted proposals in December to turn around the ailing DICON following discussions which began early last year. "A South African delegation which visited Nigeria in late January this year and left on February 2 discussed extensively with their Nigerian counterparts on the planned takeover," the official said. "Nigeria is now giving final consideration to the plans put forward by Denel." DICON was set up in 1964 to manufacture small arms for Nigeria's military. However, successive governments chose to import weapons, thus forcing the company out of business. The Defence Ministry source said President Olusegun Obasanjo's government had decided to revive the company so that it could play the role originally envisaged for it, which is similar to the one Denel played in South Africa. Should everything go according to plan, DICON - under Denel's management - would also sell its weapons to security forces in other African countries.