French car manufacturers are joining forces with leading Nigerian companies to produce vehicles as part of efforts to regain a foothold in the Nigerian market, French Ambassador to Nigeria, Marc Fonbaustier, has revealed.
In an exclusive interview with PREMIUM TIMES, Mr. Fonbaustier outlined two major collaborations, each targeting ambitious production goals.
The first partnership involves Dangote Peugeot Automobile Nigeria Limited (DPAN), a joint venture between Dangote Industries Limited and Stellantis Group, Peugeot’s parent company. The DPAN assembly plant in Kaduna State assembles cars from imported components.
Mr. Fonbaustier noted that while DPAN initially launched with the Peugeot 301, the company is now planning to expand production to include multiple models such as the 308, 3008, 5008, and 508.
The venture aims to produce and sell 44,000 vehicles annually in Nigeria, a target the ambassador described as “ambitious but achievable.”
French carmakers, particularly Peugeot and Renault, once had a strong presence in Nigeria from the 1970s to the 1990s. Peugeot operated a factory in Kaduna, Peugeot Automobile Nigeria (PAN), producing popular models including the 404, 504, and 505.
The Kaduna plant employed thousands and collaborated with numerous local suppliers, while Renault maintained a smaller-scale operation in the country. Nigeria’s early ambitions to build a local car industry positioned Peugeot as a central figure in that plan.
However, Nigeria’s economic downturn during the mid-1980s, coupled with falling oil prices, rising production costs, and the influx of used “Tokunbo” vehicles, hindered local production and sales.
Today, local car production is increasing, with companies such as Innoson, GAC, and Mikano making inroads into the market.
Mr. Fonbaustier said the French auto industry is gradually working to re-establish its presence in Nigeria.
“We have new ambitions, but you know, for the automobile industry, it’s a long cycle. It took a long time for the French to vanish from the automobile scene. It will take a bit of time to see the resurrection and the arrival,” he stated.
The ambassador highlighted a second partnership between Renault and Coscaris Group, a major Nigerian auto distributor, aimed at co-producing vehicles under the Logan brand.
“But this is not the end of the story. I think French business in Nigeria is broader than that. As you know, we still have about 100 companies operating in Nigeria. They directly employ 16,000 Nigerians. I think the amount of French investments before the shrinkage of the Naira was estimated to be 10 billion,” he added.
