Africa’s richest man Aliko Dangote has signed a joint venture agreement with PSA Peugeot Citroen and five northern Nigeria state governments to re-start assembling of cars in the country by quarter one of 2019.
According to Reuters, the plant, which will be located in Kaduna, the northwestern state is expected to churn out 3,500 vehicles within the first year and and subsequently increase that number to 10,000 units over the next few years. Peugeot would assemble three ,brands in Nigeria and target the wider West African markets for export.
“The first vehicle should come out by the first quarter of next year. We are hoping that the factory will be completed by December.” Reuters quoted an aide to Kaduna State Governor, Jimi Lawal.
He further noted that Aliko Dangote and the five Nigerian northern states will hold the majority stake in the venture while Peugeot Citroen will own a 10 percent stake in addition to running operations of the plant. Setting up the plant will cost $10 million in equity contribution and working capital of about $5 million.