Dangote Holds Majority stake in New Peugeot JV
….to assemble 3,500 units of vehicle in H1 2019

President and Chief Executive of Dangote Group, Dr Aliko Dangote will hold a majority stake in the new Peugeot Automobile Nigeria (PAN) joint venture(JV), which will see the northern Nigerian states of Jigawa, Kebbi, Katsina and Kano participating.
The development will see Peugeot Automobile Nigeria (PAN), a technical partner with Peugeot Citroen, assembling 3,500 units in the first year and ramp up to 10,000 units later at a plant that will be situated in Kaduna first quarter of 2019.
Jimi Lawal, the adviser to the governor of Kaduna state said in an interview.
“The first vehicle should come out by the first quarter of next year.
We are hoping that the factory will be completed by December.
The land has been identified … we have advertised for a contractor that will build the factory,” Jimi Lawal, the adviser to the governor of Kaduna, said in an interview.

First, Peugeot will build its 301 sedans in small volumes from semi-assembled kits of parts shipped in from its plant in Vigo, Spain.
Then the production of additional models such as the 308 compact and 508 may follow, the French carmaker said.
Peugeot Citroen will own a 10 percent stake in the local joint venture company and operate the plant, Lawal said.
The northern states would provide offtake for cars built at the Kaduna plant.
Dangote, in alliance with two states and the Bank of Industry, made a bid to acquire a majority stake in PAN in the second quarter of 2017 after the state-bad bank AMCON sought to sell some of the assets it bought in the wake of the banking crisis in 2009.
Nigeria’s automobile market which dates to the 50’s has great potential to thrive as it did before the recession of the 80’s, high production cost, the inconsistency and incompetence of the government and the market domination with imported used cars negatively affected it. Limited bank financing and the absence of an industrial policy has also stunted growth in the industry.