French Automakers Partner Dangote to Revive Nigeria’s Auto Industry

French automobile manufacturers are returning to Nigeria through strategic partnerships with local investors, including the Dangote Group, in a renewed push to revive vehicle assembly and boost domestic production.

The development is expected to strengthen Nigeria’s automotive sector, which has struggled for decades due to declining local manufacturing, foreign exchange constraints and the heavy importation of used vehicles.

At the centre of the renewed investment is a collaboration involving the Dangote Group and global automotive company Stellantis, the parent company of Peugeot.

The partnership operates under Dangote Peugeot Automobiles Nigeria Limited, which runs a vehicle assembly plant in Kaduna, northern Nigeria. The facility assembles several Peugeot models for the Nigerian market, including the 301, 308, 3008, 5008 and 508. Industry sources say the initiative forms part of broader efforts to restore Nigeria’s local auto manufacturing capacity and reduce dependence on imported vehicles.

In addition to Peugeot’s return, another French carmaker, Renault, has partnered with Coscharis Group to assemble vehicles locally.

The collaboration is expected to produce models such as the Renault Logan for the Nigerian market. Experts say the renewed partnerships could help Nigeria produce up to 44,000 vehicles annually once operations reach full capacity.

The move is also projected to create thousands of jobs, strengthen local supply chains and stimulate industrial growth. Nigeria once had a thriving automobile industry, particularly in the 1970s and 1980s, when Peugeot vehicles were widely produced and used across the country.

However, economic challenges, inconsistent policies and the influx of imported used cars led to the collapse of many assembly plants. Industry analysts believe the return of French manufacturers signals renewed confidence in Nigeria’s large consumer market and growing industrial potential.

They also say partnerships with local conglomerates like the Dangote Group could accelerate technology transfer and support government efforts to reposition the country as a regional hub for vehicle manufacturing.

Stakeholders say the initiative will be implemented in phases over the coming years, with investments expected to expand local assembly operations and increase the availability of affordable vehicles produced within Nigeria.