Several years ago, Aliko Dangote, Africa's richest man, wanted to expand his business by adding a vehicle assembly facility since it would have a beneficial influence on Nigeria's economic growth and development and diminish the people's dependency on foreign products and services.
A controlling share in Peugeot Automobiles in Nigeria was sought for in a joint effort with the states of Kaduna and Kebbi and the Bank of Industry (BOI) (PAN). Asset Management Corporation of Nigeria (AMCON) had previously taken the firm into receivership and was looking for investors to buy off some of the company's assets following a series of difficulties. Local core investors could not keep the firm solvent when the federal government sold up its majority position in 2006.
By the end of 2012, AMCON had a majority share in the firm and had assumed all of the company's debt. Even AMCON, on the other hand, found it difficult to keep it afloat. Everybody sighed with pleasure when Dangote bid to buy PAN for 52 million euros (approximately N21 billion), signaling that the firm needed a fresh lease on life.
In the end, the idea was doomed from the start. Since he realized that investing in PAN would have been an enormous burden, Dangote promptly changed his mind. A year later, he negotiated a joint venture deal with Peugeot of France, a French automaker (PSA Groupe). A new firm, Dangote Peugeot Automobiles Nigeria Limited (DPAN), has started up recently.
DPAN just issued its first set of completed saloon vehicles, located around 25 kilometers from the current location of the defunct PAN Limited assembly facility in Kaduna State. This set, however, is not for sale, according to a person who is familiar with the matter. In the first quarter of 2022, the business tycoon intends to put the units on the market.