Nigeria Lacks Incentive For Investment

December 2006 | BMI View

BMI's latest Nigeria Automotive Report views the take-over of the country's largest car manufacturer Peugeot Automotive Nigeria (PAN) in December 2006 with cautious optimism. The new core investor, ASD Motors, paid US$31.98mn for a 54.87% stake in PAN, but its lack of experience in car manufacturing, lack of local quality parts suppliers and possible problems in raising the necessary capital to secure the plant's future are significant obstacles. While Peugeot retains a 10% stake in the plant and has an interest in increasing production, Nigeria is not a high enough priority as the market is too small to justify bringing

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