Dangote Expands Empire: Launches Automobile Production with DPAN Plant

Africa’s richest man, Aliko Dangote, has further diversified his business empire, venturing into automobile production through the Dangote Peugeot Automobile Nigeria (DPAN) plant. The facility, a joint venture between Dangote Group, Stellantis (Peugeot’s parent company), and other investors, has achieved a significant milestone with an annual production capacity of 44,000 vehicles.  

The move marks Dangote’s latest foray into a new sector, following his recent entry into oil and gas with the $19 billion Dangote Refinery. The DPAN plant, a state-of-the-art, tech-driven facility, is poised to revolutionize Nigeria’s automotive industry, reducing reliance on imported vehicles and creating thousands of jobs.  

In a statement, Dangote emphasized the plant’s potential to drive economic growth and industrial development. “This is a pivotal moment for Nigeria’s automotive sector. By producing vehicles locally, we are not only creating employment opportunities but also contributing to the nation’s self-sufficiency and technological advancement,” he said.  

The DPAN plant, located in Kaduna State, is equipped with advanced manufacturing technologies, including robotic assembly lines and precision engineering systems. It will produce a range of Peugeot models tailored to the Nigerian market, with plans to expand exports across West Africa.  

Industry analysts have hailed the development as a game-changer for Nigeria’s struggling automotive sector. “This is a bold step that could transform the industry,” said Adeola Adebayo, an automotive expert. “Local production will reduce costs, improve accessibility, and stimulate related industries like steel, plastics, and electronics.”  

The Nigerian government has also welcomed the initiative, with the Minister of Industry, Trade, and Investment, Doris Uzoka-Anite, describing it as a “significant boost” to the country’s industrialization agenda. “The DPAN plant aligns with our vision to make Nigeria a hub for automotive manufacturing in Africa,” she said.  

The plant’s launch comes amid growing demand for affordable, locally assembled vehicles in Nigeria, where high import tariffs and foreign exchange challenges have made car ownership increasingly difficult for many.  

Dangote’s latest venture underscores his commitment to diversifying Nigeria’s economy and reducing its dependence on oil exports. With the DPAN plant now operational, the billionaire industrialist is set to further cement his legacy as a key driver of Africa’s industrial transformation.  

The DPAN plant is expected to officially roll out its first batch of vehicles by the second quarter of 2025, with plans to ramp up production to meet both domestic and regional demand.