Until the mid-2000s, Peugeot cars were the official vehicles for government officials. Brand-new cars were described colloquially as ‘Pan’. They were the closest most Nigerian civil servants came to owning brand new cars. Senior civil servants received them as their official car. The name Peugeot evoked national pride in local manufacturing. Most of Nigeria’s military rulers drove a Peugeot as their official car. The Peugeot 504 was even nicknamed the Nigerian car. But after 50 years, the company that assembled cars built for Nigerian roads has largely been forgotten. Here’s what happened.
Birthed By Dreams of Industrialization
In 1969, under General Yakubu Gowon, Nigeria sought to boost industrialization. He invited proposals for a local vehicle assembly plant. Among them, French carmaker Peugeot made the cut as the preferred choice, largely due to its strong popularity in Nigeria at the time. On December 15, 1972, the Nigerian government partnered with Automobiles Peugeot of France to officially launch Peugeot Automobile Nigeria (PAN).
The Parties Agree
As part of the agreement, the Federal Government would restrict the importation of other car brands. This effectively shielded PAN from direct competition with fully imported vehicles. Additionally, the government provided concessions on import duties, thus, reducing the financial burden of importing completely knocked down (CKD) packs, which are essential for assembly operations.
On its part, PAN would pursue a programme that would lead to a gradual deletion of imported parts. The agreement stipulated that PAN must achieve at least 30% local content as measured by the ex-factory value of a CKD pack, by the end of the third year of operations. The goal in view was to foster local supplier development and enhance economic benefits
Furthermore, the agreement mandated the establishment of a standing committee to agree on annual deletion targets. This was the Federal Government’s way of ensuring a structured and monitored approach to its goal of reducing dependency on imported components. This committee was to facilitate collaboration between PAN and local stakeholders to meet these targets and was to include suppliers and government bodies.
Into the 80s: Becoming a Cultural Icon
Twenty-seven (27) months after the agreement went into effect, in 1975, the Kaduna plant was commissioned. It began assembling vehicles, reaching an installed capacity of 240 cars daily by 1981, or an average of 63,000 annually.
Between 1975 and 1985, production varied between 36,000 and 66,000 cars per year, with models like the 404, 504 (including Delivery Van and Ambulance) and 505 rolling off the line. By 1985, PAN had produced a total of 342,262 vehicles, with the Peugeot 504 becoming a cultural icon. Nigerians nicknamed the Peugeot 504 “the Nigerian Car” because of its dependability and rugged design, perfectly suited to the country’s tough road conditions. The vehicle gained immense popularity among civil servants throughout the 1970s and 1980s, becoming widely recognized as a status symbol and a mark of middle-class aspiration in Nigeria. It would become a permanent sight on Nigerian roads into the 2000s.
The Federal Government kept its own side of the deal with its import restrictions and duty concessions protecting PAN from foreign competition. Peugeot kept his own end of the bargain and local content targets aimed for 30% by the third year. About 60% of sales went to government agencies, underscoring public sector reliance.
The 90s: Decline and Competition from Tokunbo
However, by the early 1980s, falling global oil prices plunged Nigeria into economic turmoil. The crisis deepened under General Ibrahim Babangida’s Structural Adjustment Program (SAP), which introduced austerity measures. By 1988, crude oil made up 87% of Nigeria’s export earnings, leaving the economy highly vulnerable to oil price shocks.
As oil revenues declined, Nigeria experienced widespread financial instability. For PAN, this meant a sharp decline from 1987, with production dropping to 13,806 units by 1991. By 1995, it had dropped to 3,750 as reduced purchasing power and government budget cuts hit sales. At this time, the rise of used car imports, which cost just 35% of brand new PAN vehicles, intensified competition. PAN lost its protection and by 2000, these imports dominated the market and made it harder for PAN to sustain demand.
PAN tried to fight back with the introduction of the “new generation cars”. It redesigned and re-organised the plant to meet the complexities of the new technologies. Peugeot also introduced new rails for the movement of CKD parts and finished products, thus reducing cost and increasing production capacity. It also introduced a new paint technology that gave the cars a sleeker appearance.
In November 2006, the Federal Government gave up and PAN was privatized in the hopes of arresting its decline. But these efforts did not avail. By 2009, its current average production had crashed to between 25 and 30 cars a day.
Resurrected from the Dead With Dangote’s Help
PAN’s financial woes deepened, leading to significant debt. In October 2012, the Asset Management Corporation of Nigeria (AMCON) intervened, acquiring its non-performing loans and converting some into equity to restructure the firm. This did not immediately improve the situation, and ownership was shuffled again. Aliko Dangote, acquired a majority stake in 2017, alongside the Bank of Industry and Kaduna and Kebbi state governments, forming DPAN.
Under Dangote’s leadership, (Dangote Peugeot Automobile Nigeria) DPAN built a modern assembly plant in Kaduna with an annual capacity of 44,000 cars. By 2022, it started operations, assembling models like the 301, Landtrek, 3008, 5008, and 508, with a production capacity of 44,000 vehicles annually. In February 2025, DPAN began assembling the Peugeot 3008 GT, a high-performance SUV, marking a belated comeback. However, DPAN would no longer assembly Peugeot vehicles in Nigeria instead it will assemble mostly Chinese brands.
Still Remembered
Despite its ups and downs, Peugeot remains a cultural icon in Nigeria, with the 504 still seen on roads today, reminding us of a bygone era of Nigeria’s failed industrial ambitions. DPAN’s efforts aim to blend this legacy with modern innovation promises to potentially reclaim Peugeot’s leadership in the market. But even if that succeeds, Peugeot will just be one more car brand among many others, not the king of Nigerian roads it once was.
