Dangote revives Peugeot assembly in Nigeria with new Kaduna plant

Dangote revives Peugeot assembly in Nigeria with new Kaduna plant

For all the News from Mashonaland Central, Join One of Our Groups

Africa’s richest businessman, Aliko Dangote, is attempting to rebuild Nigeria’s local vehicle manufacturing industry by bringing Peugeot assembly back into production through a modern plant in Kaduna, after years of decline that once pushed Peugeot Automobile Nigeria (PAN) to the brink.

Business Insider Africa reports that Peugeot was once a dominant brand on Nigerian roads, with the Kaduna factory long seen as a symbol of the country’s industrial ambitions. However, declining sales, competition from imported used vehicles and what the report describes as policy inconsistency contributed to a collapse in production and rising debts.

By 2012, PAN had accumulated debts estimated at about N30 billion and was taken over by the Asset Management Corporation of Nigeria (AMCON), a government agency created to acquire distressed assets from Nigerian banks. AMCON’s intervention was followed by continued difficulties and a prolonged decline for the brand.

Dangote Industries joined a consortium that acquired a controlling stake in PAN Nigeria from AMCON in 2016. The acquisition aligned with Dangote’s broader strategy of increasing domestic production capacity in sectors where Nigeria relies heavily on imports, a model he has pursued in cement, fertiliser and petroleum refining.

Rather than simply restarting the previous Peugeot arrangement, the report says Dangote pursued a fresh assembly and marketing framework through a new entity, Dangote Peugeot Automobiles Nigeria Limited (DPAN), after discussions with Peugeot’s parent company at the time, PSA Groupe.

Following the 2021 merger that created Stellantis — combining PSA Groupe and Fiat Chrysler Automobiles — the partnership continued under the new global automotive group, according to the report.

To Advertise Inbox Us

DPAN developed a new assembly facility along the Kaduna-Abuja Expressway, and began operations in January 2022 with assembly of the Peugeot 301 sedan. Production has since broadened to include the Landtrek pick-up truck, the Peugeot 508 saloon, and the 3008 and 5008 sport utility vehicle models.

In April 2026, Stellantis announced the start of local production of the new Peugeot 3008 and 5008 models at the Kaduna facility, in what it described as another step towards strengthening local assembly operations in Nigeria.

The plant is designed to produce up to 120 vehicles a day across two shifts, although the report notes that actual production remains below that level as operations expand gradually and the company works on growing market share.

Analysts cited in the report say Nigeria is one of Africa’s largest vehicle markets but remains heavily dependent on imports, particularly used cars. The report adds that growth in population and urbanisation, alongside comparatively low vehicle ownership rates, suggest long-term potential if local manufacturing obstacles can be addressed.

Business Insider Africa notes that local assembly in Nigeria has often faced challenges including foreign currency constraints, inconsistent policy application, limited consumer financing and infrastructure weaknesses — issues that could also affect DPAN’s expansion plans.

The report suggests Peugeot may have an advantage in brand recognition, with older Nigerians associating it with a time when locally assembled vehicles were common. Whether that familiarity can translate into a commercially sustainable manufacturing base will depend on increasing local content, developing supplier networks and competing with imported alternatives.

Follow Our WhatsApp Channel for all the News from Mashonaland Central – Bindura, Mbire, Guruve, Mount Darwin, Rushinga, Shamva, Mazowe & Muzarabani