Alhaji Aliko Dangote, Africa’s richest man, has partnered with the Bank of Industry (BoI), and Kaduna and Kebbi State Governments, to acquire majority of shares in Peugeot Automobile Nigeria (PAN) Limited.
Kaduna State Governor, Nasir el-Rufai, made this known at the launch of the Bank Of Industry (BoI) Youth Empowerment Scheme (YES), saying the bids have been submitted to the carmaker, while being optimistic and confident that the bid will sail through.
In January, Asset Management Corporation of Nigeria (AMCON) invited prospective investors to bid for AMCON’s 79.3 percent stake in PAN, the Kaduna-based joint venture with French automaker Peugeot Citroen.
AMCON acquired majority stake in PAN in 2012 after taking over the company’s debts worth about N30 billion owed to some Nigerian banks.
In November 2006, the company ran into troubles after the government reduced its patronage and sold off its majority stake and privatized it in order to build a stronger, more competitive and diversified economy.
ASD Motors emerged as the successful core investor and took over the management of the company in January 2007, with a 54.78 per cent stake, making Sani Dauda CEO of both ASD Motors and Peugeot Nigeria.
The expectation was that the privatization of PAN would create a quantum leap in performance. The company’s revenues declined from N30 billion in 2007 to less than N2 billion in 2013 while sales declined from 12,000 vehicles in 2007 to less than 1,000 vehicles in 2013.
PAN Nigeria, founded in 1972 as a joint venture between the Federal Government and Peugeot Citroen, was once the dominant car manufacturer in Nigeria with an annual production of 90,000 vehicles.
Though conceived in 1969, Peugeot found its roots in Nigeria only two years later, after winning a bid during the Yakubu Gowon-led government.
Peugeot Nigeria assembly plant is located in Kaduna state. The plant has the capacity to assemble 240 cars daily.