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The Governor of Kaduna State, Nasir Ahmad El-Rufai, has said that Aliko Dangote, Africa’s richest man, along with two state governments have made bids for majority stake in Peugeot Automobile Nigeria (PAN).

In January, Asset Management Corporation of Nigeria (AMCON) invited prospective investors to bid for AMCON’s 79.3 percent stake in PAN, the Kaduna-based joint venture with French automaker Peugeot Citroen. AMCON had said bids would close on January 26th.

AMCON acquired majority stake in PAN in 2012 after taking over the company’s debts worth about N30 billion owed to some Nigerian banks.

Speaking during a conference on Thursday, El-Rufai said Dangote bid for AMCON’s stake in PAN in partnership with Kaduna and Kebbi States as well as the Bank of Industry (BoI).  
"We have submitted bids for the carmaker ... with Aliko Dangote on board together with BoI, Kebbi and Kaduna State, we are confident our bid will sail through," El-Rufai told a conference attended by Reuters.

Founded in 1972 as a joint venture between the federal government and Peugeot Citroen, PAN Nigeria was once the dominant car manufacturer in Nigeria with an annual production of 90,000 vehicles. However, the company ran into troubles after the government sold off its majority stake in 2006 and reduced its patronage.

The company’s revenues declined from N30 billion in 2007 to less than N2 billion in 2013 while sales declined from 12,000 vehicles in 2007 to less than 1,000 vehicles in 2013. PAN Nigeria has the capacity to assemble 240 cars per day.