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Dangote gets license to establish new Peugeot plant in Nigeria.

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Aliko Dangote, billionaires

Dangote Group has been granted a franchise by the Peugeot of France Groupe to construct and operate an assembly plant in Nigeria.

A franchise is a type of license that a party (franchisee) acquires to allow them to have access to a business’s (the franchiser) proprietary knowledge, processes, and trademarks in order to allow the party to sell a product or provide a service under the business’s name

The new assembly plant by Dangote-Peugeot Automobile Nigeria Limited DPAN is a joint venture between Dangote Industries Limite, the Kaduna State Government, and Peugeot of France PSA Groupe.

This is coming after Dangote group made an initial ₦11 billion bid for majority stake in Peugeot Automobile Nigeria (PAN) from the Asset Management Company of Nigeria AMCON, an exercise which has remained unresolved for more than a year.

Dangote group has now gone to invite tenders from members of the public for the construction of a new Peugeot Assembly plant to be located at Dutse, along the Kaduna-Abuja expressway, Kaduna, about 25 kilometers away from the present location of PAN Limited assembly plant in Kakuri industrial zone of Kaduna.

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What this means for competitors

Competitors such as Innoson, Toyota, Kia, and Leyland Assembly plant may be in for a tough time as Dangote is known for selling goods at the slimmest of margins, in favor of quick turnover and revenue from after-sales services.

His collaboration with the state governments means he will not face opposition from the state governments. Also, patronage from the state governments is also guaranteed since they are shareholders. Prior to its struggles, the government had been one of PAN’s biggest customers.

Peugeot’s executive vice president for Africa and the Middle-East, Jean-Christophe Quemard, met President Muhammadu Buhari recently to discuss reviving local production in the country.

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Recall that in 2016, the Asset Management Corporation of Nigeria (AMCON) invited prospective investors to bid for its 79.3 percent stake in Peugeot Automobile Nigeria.

AMCON acquired a majority stake in PAN in 2012 after taking over the company’s debts worth about ₦30 billion owed to some Nigerian banks.

Peugeot Automobile Company of Nigeria PAN was incorporated on December 15, 1972, as a limited liability company with an authorized share capital of N3 million. It commenced full operations on March 2, 1975.

After about two decades of smooth operations, the company ran into stormy waters after series of policy somersaults by the government and inadequate tariff protection for local assembly plants.

By 2013, the company’ s revenue generation profile had dropped to a meager ₦2 billion per annum from about ₦30 billion a decade ago. Its market share dropped drastically from 20% to only 2%, with car sales figure declining from ₦31.7 billion in 2007 to ₦1.96 billion

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With a huge debt of N30 billion by 2011 and no prospect of a private investor willing to risk his money in turning it around, in 2012, the Asset Management Company of Nigeria (AMCON), acquired a controlling 80% shareholding and assumed board and management control.

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Dangote Group is a diversified conglomerate, with interests across a range of sectors in Africa. Current interests include cement, sugar, flour, salt, pasta, beverages and real estate, with new projects in development in oil and natural gas, telecommunications, fertilizer, and steel.

 

Fikayo has a degree in computer science with economics from Obafemi Awolowo University. ITIL v3 in IT service management. An alumnus of Daystar Leadership Academy. Prior to joining Nairametrics had stinct in Project management, Telecommunications among others. Also training in Consulting and Investment banking from Edubridge Academy. He has very keen interest in Politics, Agri-business, private equity and global economics. He loves travelling and watching football. You can contact him via [email protected]

4 Comments

4 Comments

  1. Genesis Bandodo

    May 18, 2018 at 10:06 am

    Indeed Aluko Dangote sees the future.

  2. Shola Olagunju

    May 31, 2018 at 5:40 am

    Dangote connives with each government in power for monopoly of everything that could sustain lives Nigerians. Monopoly or better still one-traffic is bad for economic growth.

    • Kenneth Glendinning

      June 24, 2018 at 12:23 am

      BLINKERED

      BIASED

      UNBALANCED

      UNSUBSTANTIATED

      Mealy-Mouthed opinion of a

      SUCCESS-HATER

  3. Kareem

    June 3, 2018 at 9:53 am

    You are wrong @shola Olagunji. We have so many billionaires in this country where are their money???? Those money weither stolen or not are used to build other people’s nation. If those money were in projects like this, there would have been more jobs for Nigeria citizens and less poverty in the land. So for me as long as no much people willing to provide these type of opportunities for this country and Dangote renders ✋……hmmmm bro, I will support him over and over again.

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Business News

Lagos state moves against fake news and inciting messages merchants

The government has warned fake news and inciting message merchants to stop their evil enterprise or face legal consequences.

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The Lagos State Government has warned against fake news and inciting messages as they react to videos in social media and online space, creating tension and encouraging ethnic conflicts.

This was contained in a statement that was issued by the Lagos State Commissioner for Information and Strategy, Gbenga Omotosho, on Saturday, October 24, 2020.

In the statement, Governor Babajide Sanwo-Olu urged Lagosians to disregard the videos, which are the tools of anarchists, whose plan is to create hatred and divisiveness for which Lagos is not known for.

The statement partly reads, ‘’Inciting videos of this nature are not what our land needs now, following the loss of lives and destruction that fake news, misinformation and unfounded rumours have triggered in our dear state in the last couple of days.

‘’The government appeals to Lagosians to disregard the calls of ethnic and religious jingoists as well as agents of destruction who are on a mission to destroy our state by pitching us against one another for yet to be ascertained reasons. This is a very critical moment for us as a people. It is, therefore important that we stand together and remain circumspect because the brewery of falsehood is unrelenting in its mission.’

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The commissioner said Lagos State is the melting point of various cultures, tribes and religions across Nigeria and noted we have co-existed harmoniously for ages and will continue to live together peacefully.

He pointed out that the sad incident of the past few days affected everyone who lives, trades or works in Lagos, regardless of their tribe, culture, race and religion. He said this is a time for us to empathize with one another and not listen to purveyors of evil messages, especially on social media.

Omotosho said the government will continue to protect lives and property and warned fake news and inciting message merchants to stop their evil enterprise or face the legal consequences of their destructive actions.

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Appointments

TCN MD, Sule Abdulaziz appointed Chairman of West Africa Power Pool

The acting Managing Director of TCN, Sule Abdulaziz, has been appointed the new Chairman of WAPP.

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TCN MD Abdulaziz, four other directors receive appointment letters

The acting Managing Director of Transmission Company of Nigeria (TCN), Sule Abdulaziz, has been appointed the new Chairman of the Executive Board of West African Power Pool (WAPP). Abdulaziz was nominated by the former Managing Director of Power Holding Company of Nigeria (PHCN), Joe Makoju, who is an honorary member of WAPP.

READ: NNPC signs gas development and commercialization deal with SEEPCO

This disclosure was made by TCN’s General Manager, Public Affairs, Mrs Ndidi Mbah, through a public statement in Abuja on Thursday, October 22, 2020.

In her statement, Mbah revealed that the West African Power Pool was created by Decision A/DEC.5/12/99 of the 22nd Summit of the ECOWAS Authority of Heads of State and Government, and adopted during the 29th Summit of the ECOWAS Authority of Heads of State and Government held in Niamey, Niger.

READ: Indian firm, Ramco signs partnership deal with Nigerian airline

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The appointment was made during the 46th meeting of the WAPP Executive Board which was chaired by the Secretary-General of ECOWAS, Ki Sengui, and held through video conference on October 21.

The statement from Mba partly reads, “While making the nomination, Makoju noted that Abdulaziz is an expert in engineering with vast experience in the electricity sector and therefore will perform creditably as the new WAPP Executive Board Chairman.

READ: Continental Reinsurance Plc acquires 100% ownership of its Botswana subsidiary

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“His proposal was endorsed by MDs and Director Generals and other members of the board,” she said.

According to the statement, Abdulaziz in his acceptance speech thanked the board members and the honourary members for his nomination as the Chairman of the board and assured them of his total commitment to the overall objective of the regional electricity body.

READ: A bitter family feud has continued to hamper this company’s growth

He also expressed the need to move the pool to the next level of operational efficiency and solicited the support of member utilities, especially members of the executive board in this regard.

Explore Data on the Nairametrics Research Website 

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He urged members to ensure prompt payment of their contributions to the pool and also continue to collaborate actively with the secretariat to ensure effective and efficient coordination and implementation of all WAPP programmes.

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ENDSARS

President Buhari to address Nigerians on Lekki toll plaza shootings after investigation 

Minister of Sports says President Buhari will address Nigerians on the Lekki Toll Plaza shootings at the completion of investigations.

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President Buhari to address Nigerians on Lekki toll plaza shootings after investigation , Youth Investment Fund:  Ministry of Finance and CBN to launch provision of funds- Minister

President Buhari will address Nigerians on the Lekki toll Plaza shootings, as he awaits the outcome of the investigations into the shootings of unarmed #EndSARS protesters by soldiers.  

This disclosure was made by Mr. Sunday Dare, the Minister of Youth and Sports Development, during an interview with Arise TV on the unrest and uncertainties gripping Nigeria following the protests over police brutality. 

READ: #EndSARS: United Nations condemns the use of excessive force by Nigerian Armed Forces

The Minister emphasized that the President during the National Security Meeting yesterday has ordered an investigation into the Lekki Toll Plaza shooting, and thereafter he would speak on the incident. 

READ: #EndSARS Protests: Osinbajo commiserates with victims of Lekki shootings

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What they are saying 

When asked by Charles Aniagolu of Arise TV why the President hasn’t made an official statement on the unfortunate event at the Toll Plaza, Mr. Dare explained in his response that President Buhari hasn’t made a statement on the tragedy because he wants to have all the facts, which will absolutely be made public.  

READ: Buhari presented with gold bars mined in Zamfara as Nigerian prepares to launch PAGMI scheme.

“It is important to get all the facts right before we go forward. In this case, it’s going to be difficult to hide these facts because we live in a multimedia world and we have pieces of evidence and corroboration and I think it is important to get the facts right.

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READ: #EndSARS: Feminist Coalition raise Cryptos worth $126,000

“I think that’s the part the President has towed and I am sure that when the facts are made available, this President – because he has integrity – will level with the Nigerian people about what happened on Tuesday in Lekki.” 

Mr. Sunday Dare said the present administration’s commitment to protecting the rights of all citizens is unshaken. He reiterated that in line with this core mandate, a presidential pronouncement was made by the Presidency to permanently dissolve the notorious SARS group. 

Explore Data on the Nairametrics Research Website 

He disclosed that the level of responsiveness and concrete steps that the President has taken to stem down civil unrest in the country is commendable, as the #5 of 5 demands are fully accepted by the President. 

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