The move is intended to make DICON's products more competitive and attractive to customers.
Parliament in 1964 established DICON to ensure local production could meet the needs of the country's security forces.
Nigerian Vice President Namadi Sambo made the pledge in Abuja at a meeting of the Presidential Committee on the Review of the Structure, Operations and Activities of DICON, the Osun Defender reported.
On its website, DICON states that its mission is "to operate the ordnance factories for the manufacture and supply of arms and ammunition as well as inspecting, testing and recommending ordnance materiel intended for use by the Armed Forces and other security organizations while using the excess capacity to support the development of local industries."
DICON developed and manufactured a wholly Nigerian made armored personnel carrier for the Nigerian army. The APC prototype was recently inaugurated by Nigerian President Goodluck Jonathan.