₦airaland Forum

After Cement, Fertilizer and Refining: Dangote Moves to Revive Nigeria's Forgotten Auto Industry

Africa's richest businessman, Aliko Dangote, is making another ambitious bet on local manufacturing, this time targeting an industry many Nigerians thought had long been lost.

More than a decade after the collapse of Nigeria's once thriving automobile manufacturing sector, Peugeot vehicles are once again rolling off assembly lines in Kaduna as Dangote pushes to revive domestic vehicle production.

For decades, Peugeot was the dominant vehicle brand on Nigerian roads. Models such as the Peugeot 404, 504 and 505 became household names, serving as official government vehicles, taxis and family cars across the country.

However, years of economic instability, policy inconsistencies, foreign exchange shortages and growing competition from imported used vehicles pushed Peugeot Automobile Nigeria (PAN) into decline. By 2012, the company had accumulated debts estimated at about ₦30 billion and was eventually taken over by the Asset Management Corporation of Nigeria (AMCON).

Many believed the story had ended.

But in 2016, Dangote Industries joined a consortium that acquired a controlling stake in PAN, setting the stage for what is now one of the country's most significant attempts to revive local automobile manufacturing.

The move led to the creation of Dangote Peugeot Automobiles Nigeria (DPAN), which secured the rights to assemble and market Peugeot vehicles in Nigeria under a new arrangement with the global automotive group now known as Stellantis.

Today, the company operates a modern assembly facility along the Kaduna Abuja Expressway, producing models including the Peugeot 301, 3008, 5008, 508 and the Landtrek pickup truck.

Industry observers say the investment follows the same strategy Dangote used to transform Nigeria's cement industry and later expand into fertilizer and petroleum refining: build local production capacity in sectors where the country depends heavily on imports.

Despite the progress, major challenges remain. Nigeria still imports most of the vehicles used within the country, while manufacturers continue to face obstacles such as high production costs, limited access to consumer financing, foreign exchange pressures and infrastructure deficits.

However, Peugeot retains one major advantage: brand recognition. For millions of Nigerians, the Peugeot name remains closely linked to a period when locally assembled vehicles were a common sight on the nation's roads.

Whether Dangote can successfully restore that era remains uncertain, but the revival of Peugeot has already reopened conversations about Nigeria's industrial future and the possibility of rebuilding sectors that once formed the backbone of the country's manufacturing economy.

Source:
https://africa.businessinsider.com/local/markets/after-cement-and-oil-africas-richest-man-takes-on-another-industry-nigeria-lost/kj31c5j

Nairalanders, what do you think?

Peugeot was never a Nigerian brand though. It's French. PAN just bolted together parts shipped in from France, we never owned the design or the tech. So calling this "reviving Nigeria's auto industry" makes no sense.

Dangote still dey find Money
Then who I be?

In Rema voice -
See Money oooh --- oh oh oh see mone oh
Egbami OOooh --- Egbami oooh, Egbamio Egbami
ide burstsi my balee...

Everything forgotten

*Textile and Garments industry
*Steel industry
*Iron Ore industry
*Auto industry (PAN and Vollswagen, ANAMCO etc)
*Even Agriculture as Bandits and herdsmen chased farmers away 🤔🤔
*Rubber and Leather industry

This is how you start to understand where our problems start from..

Omo

The only patriotic Nigerian that makes money in Nigeria and also invest almost all in Nigeria.

Dangote cannot revive the auto industry.

The only way we can get a working auto industry is if we have enough small scale manufacturers making the parts that go into your typical car ...like the door handles, windows, keys, and keyholes, and so forth...in Nigeria. Anything else is just assembling car for naija.

Infact, that;s why Peugeout collapsed in Nigeria before...when PAN started, they were importing all the parts needed and assembling it in NIgeria. That was never going to be sustainable...which is wny PAN went from assembling nearly 1000 cars a day in 1981 to less than 40 a day in 1994.

Develop the industrial base that would provide the stuff needed for the cars first...then we will see a truly domestic industry

But in Nigeria, apart from an apathetic government, people tend to look down and laugh at our techincians and vocationally trained people. EVERYONE wants to work in an airconditioned office and make beeg money.

lomaxx:
Peugeot was never a Nigerian brand though. It's French. PAN just bolted together parts shipped in from France, we never owned the design or the tech. So calling this "reviving Nigeria's auto industry" makes no sense.

Of all the positive things written up there.
You had to think about something you can use to dent the good news....

This is obviously a spiritual/psychological issue.
Nothing anybody wan tell me. Na so brain rabbis dey be

Once he succeed and the industry began to thrive, you go begin hear monopoly. Now it's dormant, you won't see anyone, not even the thi#ving politicians going to invest their loot there to keep jobs.

Dpsychologist:
Nairalanders, what do you think?

Left to me he should forget automotive industry...


He should leave that for the likes of innosson and co.


Let him invest in steel manufacturing instead. (He said something about investing in that industry but I think later changed his mind)


No nation develops or becomes industrialised without a vibrant steel industrial. Or without steel basically!

He should start with power. No country truly develops without power.

Ofcourse, I can’t advise a man 100s of times richer than myself but then if it’s for reasons as patriotism and not the money he already has, Nigerians are pleading for investments in power. I pray this reaches him.

Dangote should not waste his time if his intention is to revive Peugeot. Peugeot as a brand is dead. They don’t have cars people want. The downfall of PAN due to Nigeria’s economic challenges in the 80s and 90s should not mask the fact that Peugeot would have died anyway because after the 504,505, none of their replacement models were really successful anywhere in the world.

Alhaji.. pls leave auto for now,
Focus on power and steel, they are the backbone of industrialization

This Dangote nor Dey belleful. I really admire his “ hustling “ spirit…… “ In Burna’s voice “ - ‘ DANGOTE DANGOTE, DANGOTE STILL DEY FIND MONEY……WHO I BE, WHO I BE ? Wey I nor go find money o ……’

Kelklein:
Everything forgotten

*Textile and Garments industry
*Steel industry
*Iron Ore industry
*Auto industry (PAN and Vollswagen, ANAMCO etc)
*Even Agriculture as Bandits and herdsmen chased farmers away 🤔🤔
*Rubber and Leather industry

This is how you start to understand where our problems start from..

Omo

True that...


All these are sections and industries tinubu or the federal government can revive and invest in to create jobs and raise revenue for the country.


But he has chosen the lazy man approach as a slave driver to tax the people to death!

Dpsychologist:
Source:
https://africa.businessinsider.com/local/markets/after-cement-and-oil-africas-richest-man-takes-on-another-industry-nigeria-lost/kj31c5j

Talk don too much

I have heard the story years back

Why is it not happening the way the refinery happened

I AM VERY PROUD THAT

THIS MAN IS NIGERIA ‘S PRODUCT

BUT SINCERELY SPEAKING

THIS MAN IS VERY SELFISH

IF WE HAVE HIM ,LIKE THREE IN THIS NIGERIA

THAT MEANS NIGERIAN HAS FINISHED .

Dangote should leave all these ones and please do Power na beg we dey beg am
We know our president is useless, he should please do that for us. POWER alone dun do

nairalanda1:
Dangote cannot revive the auto industry.

The only way we can get a working auto industry is if we have enough small scale manufacturers making the parts that go into your typical car ...like the door handles, windows, keys, and keyholes, and so forth...in Nigeria. Anything else is just assembling car for naija.

Infact, that;s why Peugeout collapsed in Nigeria before...when PAN started, they were importing all the parts needed and assembling it in NIgeria. That was never going to be sustainable...which is wny PAN went from assembling nearly 1000 cars a day in 1981 to less than 40 a day in 1994.

Develop the industrial base that would provide the stuff needed for the cars first...then we will see a truly domestic industry

But in Nigeria, apart from an apathetic government, people tend to look down and laugh at our techincians and vocationally trained people. EVERYONE wants to work in an airconditioned office and make beeg money.

Two bottle of alomo for you bro
Ordinary side mirror we Neva fit produce am locally
Anybody telling you there's a car production company in Nigeria is lying to you.
All na assembling plants

he has been trying to do this for years oo

Dpsychologist:
Nairalanders, what do you think?

You have put up a post. Allow people to read. Stop asking stupid questions simply because you want to drag "first to comment."

Childish.

The West will never allow Nigeria have a functional steel industry. That's why the CIA paid off Russian engineers to sabotage Ajaokuta and it can't work till date. Ajaokuta had built in systematic points of failure by design. Because the West knows that if a country gets it right with steel, then it's industrialization is assured. This is the first thing China and India tackled and today, they are striving with the west.

I believe Dangote doesn't want to set up an assembly line for imported vehicle parts like Innoson does. He wants to design and build his frame himself while sourcing engines elsewhere. For him to do this, will he be taking a look at steel production? Or importing steel rolls directly. Either way, pretty commendable effort from him.

Kelklein:
Everything forgotten

*Textile and Garments industry
*Steel industry
*Iron Ore industry
*Auto industry (PAN and Vollswagen, ANAMCO etc)
*Even Agriculture as Bandits and herdsmen chased farmers away 🤔🤔
*Rubber and Leather industry

This is how you start to understand where our problems start from..

Omo

well written and summarized

nairalanda1:
Dangote cannot revive the auto industry.

The only way we can get a working auto industry is if we have enough small scale manufacturers making the parts that go into your typical car ...like the door handles, windows, keys, and keyholes, and so forth...in Nigeria. Anything else is just assembling car for naija.

Infact, that;s why Peugeout collapsed in Nigeria before...when PAN started, they were importing all the parts needed and assembling it in NIgeria. That was never going to be sustainable...which is wny PAN went from assembling nearly 1000 cars a day in 1981 to less than 40 a day in 1994.

Develop the industrial base that would provide the stuff needed for the cars first...then we will see a truly domestic industry

But in Nigeria, apart from an apathetic government, people tend to look down and laugh at our techincians and vocationally trained people. EVERYONE wants to work in an airconditioned office and make beeg money.

Do you know about Oluwa Glass in Ondo state and Exide batteries in Ibadan, as well as Ferodo brakes, among other parts manufacturers that went into Peugeot and other assembled vehicles in Nigeria back then

That is great.... but Peugeot (Peeyo).....kai...
Why not team up with the Chinese, look for one of them who is willing to JV production in Nigeria because the way the Chinese are going they will eventually bankrupt ever automaker out there including your investments if you cannot 'pull them closer'.

Dogalmighty17:
The West will never allow Nigeria have a functional steel industry.

Why did they allow South Korea but won't allow us?

Is it the West? Or it is our own lazy mindset

I wish there is a model to give car loans to civil servants and then deduct the money over a certain period.

Exousiang01:
Of all the positive things written up there.
You had to think about something you can use to dent the good news....

This is obviously a spiritual/psychological issue.
Nothing anybody wan tell me. Na so brain rabbis dey be

What are you talking about? Peugeot isn't French?? How is it "Nigeria's car" ?

Dogalmighty17:
The West will never allow Nigeria have a functional steel industry. That's why the CIA paid off Russian engineers to sabotage Ajaokuta and it can't work till date. Ajaokuta had built in systematic points of failure by design. Because the West knows that if a country gets it right with steel, then it's industrialization is assured. This is the first thing China and India tackled and today, they are striving with the west.

Which West.
Is it the west that has already lost their steel industries to the Chinese.

The only serious steel production going on in America and the EU are of specialized steel products. The mass market products are long gone East. Everyone has surrendered to Beijing. Cannot match their low prices.

The west no longer dictate industrial products and production worldwide. Why do think Trump has been shooting the tariff arrows since he was sworn in.

anonimi:
Why did they allow South Korea but won't allow us?

Is it the West? Or it is our own lazy mindset

They needed South Korea to stand and counter China and North Korea. That's why the US still maintains one of its largest bases in that country. The US also earlier on outsourced it's ship building industries to South Korea effectively ensuring the industrialization of that country.

Dogalmighty17:
They needed South Korea to stand and counter China and North Korea. That's why the US still maintains one of its largest bases in that country.

But the West also helped China industialise, so again what is our excuse apart from being lazy?