Governor Nasir El-Rufai of Kaduna says the state, Alhaji Aliko Dangote and the Bank of Industry have concluded plans to acquire the majority shares in Peugeot Automobile of Nigeria, in a bid to save it from collapsing.
The company, Peugeot Automobile Nigeria, was a joint venture between the French car manufacturer and the Nigerian government, founded in 1972. Its assembly plant, located in Kaduna, has produced a multitude of vehicles but recently, the company has been struggling for survival due to falling demand.
At the ongoing 37th Kaduna International Trade Fair yesterday, Governor Nasir El-Rufai said that they were putting together a consortium to take over the ownership company. According to the governor, the state had already made its interest known to the Assets Management Company of Nigeria (AMCON), which manages the liabilities of the company. He further explained that the decision to take over the company was part of the efforts to resuscitate the debilitated industries in the state to create job opportunities for the increasing number of unemployed youths in Kaduna State and beyond.
Governor Nasir El-Rufai said, at the ongoing Kaduna international Trade fair, that “over the last 30 years, the Kaduna assembly plant has produced 425,000 Peugeot 504 cars alone. Our hope is that when we acquire the majority share of the company, we will restructure it to operate at full capacity, assembling between 90,000 and 100,000 cars yearly. We have the support of PAN as well as the government of France in this drive.”
“We are determined to bring back all industries related to Peugeot established in Kaduna as part of the plans to ensure that every youth in Kaduna State has something doing. Kaduna State government is committed to the revival of not only the textile industries but the entire cotton, textile and garment value chain in the state in our development strategy.”
Governor El-Rufai also states that, as part of effort to revive the agricultural sector, the state government will soon enter an agreement with a company to enable the state become a poultry hub in sub-Saharan Africa. On mining, the governor said that artisan miners would be organised into cooperatives to streamline all mining activities in the state to tackle illegal mining. He commended the organizers of the trade fair, the Kaduna Chambers of Commerce, Mines, Industries and Agriculture, for bringing captain of commerce and industries to the state.
The move by the Kaduna state government is a boost to the manufacturing industry in Nigeria as this will encourage both local and international investors in the Nigerian market.
