Nigeria's President Muhammadu Buhari says the country will establish its own domestic arms factory, designed to cut reliance on weapons from other countries.
The president said the defence ministry had been told to develop plans for a "modest military industrial complex".
The US has refused to supply weapons to Nigeria, over the country's questionable human rights record.
Mr Buhari said the US had "aided and abetted" the Boko Haram militants Nigeria has been fighting by refusing to sell weapons to the west African state, while on a visit to Washington last month.
Visiting US Congress members on Tuesday said the US could lift its ban on shipping arms to Nigeria's military if the country improved its human rights record.