PAN's Problems Mirror Ailing Autos Industry

The problems surrounding Peugeot Automobile Nigeria (PAN) intensified in Q309. After a temporary closure ordered by the Federal Inland Revenue Service (FIRS) the PAN plant was re-opened in September 2009, but the incident is likely to further erode the industry's dwindling output. The plant was closed for two days after the FIRS alleged that PAN had failed to pay a tax bill, which with interest and payment penalties had reached NGN1.29bn (US$8.38mn). However, the FIRS was satisfied with the payment of a 'substantial amount' of money and PAN's explanation for the non-payment and agreed to re-open the facility.

To read the full article, please choose one of the following options: