Aliko Dangote has entered a joint venture with PSA Peugeot Citroen, along with five northern state governments to re-start assembling of cars in Kaduna plant by the first quarter of 2019. An aide to Kaduna State Governor, Jimi Lawal, told Reuters that the joint venture, Peugeot Automobile Nigeria (PAN) Ltd, is expected to assemble 3,500 units in its first year.
Aliko Dangote Lawal said that Dangote will hold a majority stake in the joint venture, while Peugeot Citroen will own a 10 percent stake and also operate the plant. The states, according to Lawal, which include Jigawa, Kebbi, Katsina and Kano would provide off-take for cars to be built at the Kaduna plant.
A reliable source from Dangote Group, who did not want to be named because he’s not authorised to speak on the matter, confirmed the development to Vanguard when contacted on phone. Lawal said PAN would start with N3.5 billion ($10 million) of equity and working capital of about $5 million, adding that the company would later raise additional capital.
He further noted that Dangote and the state governors have visited France to sign agreements, adding that Peugeot would assemble three brands in Nigeria and target West African markets for export. “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,” Lawal said. Recall that Dangote, in alliance with two states and the Bank of Industry (BOI), made a bid to acquire a majority stake in PAN after Assets Management Corporation of Nigeria (AMCON) sought to sell some of the assets it bought in the wake of the banking crisis in 2009.