Nigerian profitable food delivery Chowdeck lands $9M from Novastar, Y Combinator

Chowdeck, a Lagos-based food delivery startup that has stayed profitable in a notoriously tough and low-margin market, has raised $9 million in Series A funding to launch a quick commerce strategy and expand into more cities in Nigeria and Ghana.

The equity round was led by Novastar Ventures, with participation from Y Combinator, AAIC Investment, Rebel Fund, GFR Fund, Kaleo, HoaQ, and others. The investors are betting on the team’s ability to pair local market expertise with execution and turn a notoriously difficult sector into a profitable super app for food, groceries and essentials.

“We’re thrilled about this round as it brings us closer to our vision of becoming Africa’s number one super app,” CEO and co-founder Femi Aluko said. “This funding will supercharge our growth plans, enabling us to expand into more cities, reduce delivery times, scale our grocery footprint, and attract the best talent to drive innovation and customer satisfaction.”

Founded in October 2021 by Aluko, Olumide Ojo, and Lanre Yusuf, Chowdeck now operates in 11 cities across Nigeria and Ghana, serving 1.5 million customers with a network of more than 20,000 riders. Its logistics system averages 30 minutes per order, and in dense areas, more than half of deliveries arrive by bicycle.

While prominent players have exited or scaled back their African operations, Chowdeck has leaned into the complexity of local markets—delivering local meals, an operationally harder challenge—to build trust with customers.

In 2024, the value of meals delivered through Chowdeck grew more than sixfold from the previous year. This year, the company says it passed its 2024 total before July.

The new funding will help Chowdeck roll out quick commerce, ultra-fast delivery backed by a network of dark stores and hyperlocal logistics hubs. The company plans to open 40 dark stores by the end of this year and 500 by the end of 2026, with two to three new stores launching each week. Chowdeck raised a $2.5 million seed round last year.

Food delivery is a crowded business globally, but when done well, it has led to some other big companies like DoorDash.

Quick commerce, on the other hand, has been a capital-intensive gamble in most markets. In Europe, Gorillas and Getir burned through hundreds of millions of dollars before retreating or consolidating. In India, platforms like Blinkit, Zepto and Swiggy have had varying levels of success with the model when it comes to profitability.

Chowdeck has been profitable since before this raise and Aluko says the company doesn’t enter cities or verticals without planning to break even within a couple of weeks.

For instance, the food delivery platform entered neighbouring Ghana this May. Within three months, it was handling 1,000 daily orders without paid advertising, which, according to Aluko, came from pent-up demand for a service that delivers local favorites alongside international cuisines. The company aims to quintuple that volume to 5,000 daily orders by the end of September 2025.

Aluko says Chowdeck plans to apply the same playbook to dark stores, which will complement its restaurant and grocery delivery operations.

Another vertical complementing these operations will be software. This June, the YC-backed startup acquired Mira, a point-of-sale provider for African food and hospitality businesses. Mira’s tools manage inventory and orders in real time; now, it will help Chowdeck optimize its operations, positioning the company as a vertical SaaS-plus-logistics provider for restaurants.

Chowdeck’s raise is a win for local players in the sector, after Jumia’s exit left market share to foreign brands such as Glovo, Bolt Food, and Yango. Yet, some of these companies have also withdrawn from certain markets, including Nigeria and Ghana, which Chowdeck is now targeting aggressively.

Super apps such as Gozem, YC-backed Yassir, and MNT-Halan are other local companies offering food delivery services in other African markets.

“The market is still very early,” Aluko said. “Customer behavior is shifting online for the first time. A whole generation is growing up ordering food without ever having walked into some of the restaurants or markets on our platform.”

For lead investor Novastar Ventures, the bet is on execution and local insight. “Chowdeck is building the future of logistics for African cities,” said partner Brian Waswani Odhiambo. “With deep local insight, a sustainability-first approach, and impressive execution, it is redefining last-mile delivery on the continent.”

TechCrunch

Nigeria’s palm oil revival: Quiet success, deeper reform needed

In a country where policy reversals and implementation lapses often stifle industrial growth, Nigeria’s palm oil sector stands out as a case of quiet, compounding progress. Thanks to a mix of incentives under the Agricultural Transformation Agenda (ATA) initiated in 2011 and continued under successive administrations, the palm oil industry has seen a renaissance led by the private sector and midwifed by a relatively coherent industrial policy.

Yet, even as Nigeria’s palm oil imports from Malaysia and Indonesia dropped by over 25 percent in value in 2024, according to trade data, the road to self-sufficiency and global competitiveness remains long and fraught with structural, environmental, and institutional challenges.

The seeds of Nigeria’s palm oil revival were sown during Goodluck Jonathan’s presidency, under the stewardship of Akinwumi Adesina, then Minister of Agriculture and now President of the African Development Bank. The strategy was classic developmental economics: offer tax holidays, access to subsidised capital, protective tariffs, and land acquisition support to attract firms into backward integration, particularly into refining and plantation development.

This was not just industrial policy on paper. It attracted real capital. Firms like PZ Wilmar, Okomu, Presco, Dufil Prima Foods, and Agri Palm Limited collectively invested billions of naira into large-scale plantations across Cross River and Edo States. Some of these projects now span tens of thousands of hectares, producing palm oil for food, cosmetics, and increasingly, biofuels and aviation fuel.

According to the Food and Agriculture Organisation (FAO), Nigeria’s oil palm fruit production rose from 10 million metric tonnes in 2019 to 11.6 million in 2023, a 16 percent jump. Meanwhile, palm oil imports continue to decline, offering modest relief to the country’s volatile foreign exchange reserves.

For once, Nigeria appears to have gotten the basics of industrial policy right: pick a sector where the country has a latent comparative advantage, create the right incentives for capital inflows, and stick with the policy long enough for results to materialise. That alone is worth commending.

But celebration must not blind us to the deeper questions, many of which remain unresolved.

First, there are ecological and social concerns about the aggressive expansion of monoculture plantations. While state governments have helped investors secure land, there is little public scrutiny around issues of land tenure, displacement of rural communities, or biodiversity loss. As global investors tighten their ESG (environmental, social, and governance) criteria, Nigeria cannot afford to ignore these risks. The palm oil boom must not become another tale of growth at the expense of livelihoods or the environment.

Second, while demand from fast-moving consumer goods (FMCG) firms has driven domestic production, it is unclear how resilient this model is without continuous government support. Many of these investors enjoy import quotas, cheap financing via NIRSAL and the Commercial Agriculture Credit Scheme, and duty waivers on equipment. Should the fiscal space tighten further or these incentives be removed, will the sector remain viable or will investors pivot elsewhere?

Third, there is little evidence of value chain deepening beyond plantation and refining. Nigeria still lags in downstream applications, R&D, and global branding. The absence of significant investment in processing, packaging, or international marketing means the country is yet to tap the full economic value of its palm oil revival. Compare this to Malaysia or Indonesia, where palm oil is part of an integrated export-industrial complex with strong linkages to chemical, energy, and food sectors.

Finally, the regulatory environment remains underdeveloped. The absence of a robust monitoring framework for land use, sustainability compliance, and local content obligations could erode both investor confidence and social licence over time.

Despite these gaps, Nigeria’s palm oil story offers valuable lessons. It demonstrates that when incentives align with sector potential, the private sector can respond with capital and expertise. It also shows that some level of protectionism, when targeted, temporary, and transparent, can spur domestic capability in key sectors.

But the work is far from over. To turn this policy success into a lasting economic transformation, Nigeria must broaden its focus: from hectares to human capital, from plantations to processing, and from incentives to institutional resilience.

It must also navigate a shifting global landscape where sustainability is no longer optional. As the EU tightens rules on deforestation-linked imports and investors prioritise ESG metrics, Nigeria must show that its palm oil is not just locally sourced but also ethically produced.

Industrial policy is not just about growth; it is about balancing efficiency, equity, and ecology. Nigeria has taken a promising first step. But the real test will be whether the country can build an inclusive, export-oriented palm oil sector that can compete, not just survive, in a warming, more protectionist world.

Business Day

'Nigeria First' policy aims to prioritize homegrown goods and services

Supporters say the initiative represents a bold step toward economic self-reliance. The government states that the policy will be supported by an executive order to ensure the desired results.

CGTN Africa

Video - Experts say BRICS offers Nigeria a new economic pathway

Nigeria became a partner country of the BRICS economic bloc in January 2025. While it doesn't have the same decision-making power as full members, it can participate in BRICS summits and initiatives. Experts say its status can also help the West African country tap into wider trade and finance networks.

CGTN

One of Nigeria’s richest men set to be buried in Saudi Arabia

 

One of Nigeria's wealthiest businessmen, Aminu Dantata, is set to be buried in Saudi Arabia later after he died on Saturday in the United Arab Emirates.

Business mogul Dantata, 94, an uncle of Africa's richest man Aliko Dangote, leaves three wives, 21 children and 121 grandchildren.

His body was transferred from Abu Dhabi where he died to Medina after Saudi authorities approved his burial in their country.

It was his wish to be buried in a city he adored and where Islam's prophet Muhammad lived and died.

Nigeria's President Bola Tinubu described Dantata's death as a "monumental national loss” in a statement.

He said Dantata had made "sterling contributions to Nigeria's growth and development" through decades of enterprise, service, and philanthropy.

He was known across Nigeria for his philanthropic activities. Last year, he donated 1.5 billion naira ($972,000; £710,000) to victims of the devastating floods in north-eastern Borno state.

His business interests cut across agriculture, real estate, construction and manufacturing.

He first made his name in agriculture, starting trading kola nuts and groundnuts in the 1940s.

He came from a business family - his father Alhassan Dantata was once considered to be the richest man in West Africa.

Despite his riches, Dantata lived in one of the poorest areas of the northern city of Kano, like his parents before him.

His influence was also felt in politics, with politicians eager to seek his blessings before elections.

A video of President Tinubu bowing to greet him before the 2023 elections went viral on social media.

A special prayer was held for him in Kano, where he lived all his life.

Two Nigerian governors and the defence minister have gone to Medina for his funeral.

Mansur Abubakar, BBC

Nigeria's Aliko Dangote 'comfortable' with impact of Trump tariffs on urea exports

LAGOS (Reuters) -Nigerian billionaire Aliko Dangote said on Thursday he was "comfortable" with the impact President Donald Trump's tariffs would have on his urea exports to the U.S. because major competitor Algeria had been slapped with a higher levy.

Trump imposed a 14% tariff on imports from Nigeria, Africa's largest oil exporter, as part of widespread trade measures introduced last month, later paused for 90 days.

Dangote told an investment conference in Lagos that Dangote Fertiliser, which began commercial operations in 2022, shipped 37% of its 3 million metric tonnes of urea production to the United States.

He said he was initially worried by Trump's tariff on Nigeria, which also exports crude to the U.S.

"But when I checked who we are really competing with, we are competing with Algeria. So luckily for us Algeria were slapped with 30%," said Dangote. "So it actually makes us a bit comfortable."

Dangote, who built Africa's largest petroleum refinery, said he expected revenues from Dangote Group, also a major cement producer, to grow to more than $30 billion next year from about $25 billion projected in 2025.

Reuters

Related story: Dangote’s fight for Nigeria’s oil future continues as he vows to defeat the cabal

Danone doubles down on Nigeria investment

French food giant Danone is doubling down on its plans to invest in Nigeria, even as other multinationals have pulled out of the continent’s largest consumer market in the last two years.

“We are convinced about the potential of Nigeria,” Christian Stammkoetter, Danone’s head of Asia, Middle East, and Africa, told Semafor on the sidelines of the Africa CEO Forum in Abidjan.

Procter & Gamble, GSK, and Unilever, are among the multinationals that have either severely cut back their presence in Nigeria or pulled out, typically citing currency devaluations and rampant inflation after President Bola Tinubu’s administration applied tough economic policies soon after coming to office nearly two years ago.

But Danone has long been operating in Nigeria, where it is best known for its Fan Milk brand, and recently invested in developing milk distribution capacity in the country’s north to help lower operational costs. Stammkoetter said the company will “continue doubling down through innovation and expansion of its routes to market.”

By Yinka Adegoke, Semafor

Video - Experts call for Nigerian to boost ties with China as U.S. tariff threat looms

Nigeria is under pressure to diversify its trade partners after the U.S. announced a potential 14 percent tariff on its exports. Manufacturers warn the move could drive up production costs, affecting both businesses and consumers. Economic experts are now urging the government to deepen partnerships with China and tap into the country’s vast untapped mineral reserves to boost export resilience.

CGTN

Video - Unilever Nigeria reports 65 percent surge in Q1 profit, driven by strong sales

Unilever Nigeria reported a Q1 profit of $6.7 million, a 65 percent increase. This surge was primarily driven by strong sales in its food products segment, followed by personal care and beauty, and wellbeing categories.

CGTN

Aliko Dangote to Join the World Bank

 

The President/CEO of Dangote Group, among other industry executives, had on Wednesday, been invited to join the World Bank's Private Sector Investment Lab.

In response, the Nigerian billionaire accepted the invitation, noting that being icnluded in the group was an honor.

“I am both honoured and excited to accept my appointment to the World Bank’s Private Sector Investment Lab, dedicated to advancing investment and employment in emerging economies,” he said.

“This opportunity aligns with my long-standing commitment to sustainable development and unlocking the potential of developing economies.

Drawing inspiration from the remarkable successes of the Asian Tigers, which have demonstrated the power of strategic investment and focused economic policy, I am eager to collaborate with fellow leaders to replicate such outcomes across other regions,” he added.

What the World Bank said

Under the broader expansion of its Private Sector Investment Lab, which is currently starting a new phase, the World Bank, on Wednesday, announced Dangote's appointment.

This new phase is aimed at scaling up ideas to attract private capital and generate employment in the developing world, as reported by the Punch.

The global lender also noted that the aforementioned new phase has expanded the Lab's membership to include industry executives with experience creating jobs in developing markets, which is consistent with the Bank's growing role in job creation as a major driver of growth.

During the announcement, they mentioned that they had invited the Nigerian billionaire, alongside Bill Anderson, CEO of Bayer AG, Sunil Bharti Mittal, Chair of Bharti Enterprises, and Mark Hoplamazian, President and CEO of Hyatt Hotels Corporation, to the recent iteration of the Lab.

“These industries have a proven ability to translate investment into broad-based employment and economic opportunity”, the World Bank head Ajay Banga stated.

“We are grateful to the original Lab leaders who helped us deliver strong results in the initial work period,” he added.

Currently, according to the Dangote website, Dangote cement alone has been able to support 54,000 employment in four African nations where the business operates, including Nigeria, Ethiopia, Senegal, and South Africa.

His recently established single train 650,000 barrels refinery also employs 29,000 Nigerians and 11,000 foreigners.

AXA, BlackRock, HSBC, Macquarie, Mitsubishi UFJ Financial Group, Ninety One, Ping An Group, Royal Philips, Standard Bank, Standard Chartered, Sustainable Energy for All, Tata Sons, Temasek, and Three Cairns Group were among the notable CEOs who launched the Lab.

By Chinedu Okafor, Business Insider Africa

Nigeria affected by Trump sweeping tariffs

The United States President, Donald Trump, Wednesday enacted sweeping new tariffs in a move that could escalate trade tensions globally at what he tagged “liberation day”.

Trump said the U.S. will implement “reciprocal tariffs” on all countries of “approximately half” of what they charge us.

Among the countries slammed with reciprocal tariff is Nigeria. Under the tariff plan, Nigerian exports will be charged 14 per cent tariff as against the 27 per cent charged by the Federal Government.

Last year, Nigeria exported goods worth N931 billion to the United States, with crude oil forming the bulk of the goods. It, however, imported N1.05 trillion worth of goods from the U.S. in the same period.

Bringing out a chart to show the audience, he showed that China “charges” the U.S. a tariff of 67%, so the United States will charge China a 34% tariff.

The chart also showed that the United States will charge the European Union a 20% tariff, Vietnam a 46% tariff, Taiwan 32%, Japan 24%, India 26%, South Korea 25%, Thailand 36%, Cambodia 49% and more.

Trump concluded his “make America wealthy again” event in the White House Rose Garden by signing two executive orders. The first closes “the de minimus loophole” on China, which has allowed the country to export cheap goods to the United States without paying taxes and import duties.

The second implements the president’s “reciprocal tariffs”, which the president explained includes a 25% tariff on all imported cars and 10% to 49% tariffs on all goods imported from abroad.

Trump said the tariffs he announced would generate “$6 trillion in investments” but experts explain that tariffs are actually paid for by American businesses and consumers. That would make it the largest “tax hike” in U.S. history.

The European Union, which is facing 20% tariffs on all exports to the U.S., will not react until today when the European Commission president Ursula von der Leyen will make a statement.

By Dennis Erezi, The Guardian

Video - Unilever Nigeria reports 79 percent profit surge in 2024

The company says growth in its food and personal care segments helped fuel the profits. However, Unilever remains cautious about macroeconomic risks, citing volatile oil prices, forex shortages, and unfavorable fiscal policies.

CGTN

Nigeria moves to become third African country to offer citizenship by investment program

The citizenship by investment program will allow foreign investors to obtain Nigerian nationality in exchange for significant economic contributions.

This move aligns with global trends where countries leverage CBI programs to attract foreign capital, boost economic growth, and increase foreign direct investment.

Currently, Egypt and Mauritius are the only African nations offering formal citizenship by investment schemes.

Nigeria’s entry into this space could position it as a key player in attracting wealthy investors, entrepreneurs, and high-net-worth individuals seeking access to Africa’s largest economy.

The CIB program in focus

Egypt and Mauritius offer distinct Citizenship by Investment (CBI) programs.

Egypt requires a $250,000 non-refundable contribution or investment in approved real estate or business.

Mauritius offers a Permanent Residency by Investment route, requiring a $375,000 real estate investment for a 20-year residence permit, with citizenship eligibility after seven years.

Nigeria's potential CBI program may follow either model, depending on its economic priorities and political stance.

CIB as bait for foreign investors?

Nigeria's House of Representatives has taken a significant step towards granting citizenship to foreign investors who meet specific financial thresholds.

The Citizenship by Investment Bill, sponsored by the Deputy Speaker, Benjamin Kalu and other lawmakers passed its second reading and aims to introduce a new class of citizenship known as citizenship by investment.

This move is designed to attract substantial foreign direct investment by offering nationality to individuals who make significant economic contributions to the country.

Although specific details about Nigeria’s program—such as the minimum investment threshold, qualifying sectors, and application criteria—are yet to be unveiled, experts suggest it could include investments in real estate, government bonds, or key economic sectors like petroleum, manufacturing and technology.

The proposed alteration aims to attract foreign direct investment by granting Nigerian citizenship to individuals who invest in the Nigerian economy above a specified financial threshold or in strategic sectors critical to national development.

If implemented successfully, Nigeria’s citizenship by investment program could reshape its economic landscape, making it a more attractive destination for global investors while strengthening its position as a major African economic hub.

By Solomon Ekanem, Business Insider Africa

Visa To Set Up A Data Centre In Nigeria

Visa has announced an investment into the construction of a state-of-the-art data center in Nigeria. This was revealed by Visa’s regional president, Andrew Torre, during a visit to Vice President Kashim Shettima.

This move signals a leap forward for Nigeria’s digital infrastructure and is more than just a corporate expansion. It is a strategic play to solidify Nigeria’s position in the global tech landscape. For years, Nigeria has relied on external data infrastructure. This has led to slow data processing (latency), concerns about data ownership (sovereignty), and vulnerability to disruptions outside the country.

Visa’s data center aims to solve these problems by bringing data storage and processing closer to home. This translates to faster, more reliable online transactions for everyone, from everyday consumers to large businesses.

Andrew Torre said that this project complements Visa’s existing $1 billion investment in Nigeria. This includes partnerships with Moniepoint for digital payment solutions, Interswitch, and ThriveAgric, supporting smallholder farmers and food security. The data center, however, is designed to bring new technologies to the Nigerian market, further fueling the nation’s digital economy.

Vice-President Shettima warmly welcomed Visa’s expansion, highlighting the Nigerian government’s commitment to fostering partnerships and driving digital growth. He particularly praised Visa’s investment in ThriveAgric, aligning with the government’s focus on modernizing the agriculture sector. He stated that Nigeria is where the action is noting the country’s leading position in Africa’s fintech scene.

The impact will range from faster online payments, smoother e-commerce experiences, and more reliable digital services across all sectors. This increased efficiency will stimulate economic growth and create a more robust digital ecosystem. Beyond speed, the data center addresses data sovereignty. Keeping data within Nigeria’s borders ensures greater control and security, empowering businesses and consumers alike.

By Sonya Israni, CIO Africa

Video - Nigerian farm milks scorpions for venom, eyes lucrative global market

A farm is turning scorpion venom into a lucrative business in Lagos, Nigeria. With over 10,000 scorpions, farmers extract the highly valuable venom for use in pharmaceuticals, biotech, and cosmetics.

CGTN

Video - Nigerian turns passion for crochet into thriving footwear enterprise

Lagos businesswoman Ifunanya Nwakwudo creates durable and stylish crochet footwear. Her creations helped her start a small business.

CGTN

Video - Nigerians shift away from cable television

Nigerians shift away from cable television Rising subscription fees make it increasingly expensive for consumers to stay connected to cable.

CGTN

Nigerian Watchdog Sues MultiChoice Nigeria Over Price Hike

The Federal Competition and Consumer Protection Commission (FCCPC) of Nigeria has initiated legal proceedings against MultiChoice Nigeria Limited and its CEO, John Ugbe, for breaching regulatory guidelines. According to a statement released on Wednesday, the action comes after MultiChoice Nigeria ignored a directive issued by the FCCPC regarding a proposed price increase for its pay-TV services.

Last month, the FCCPC instructed MultiChoice Nigeria to maintain its current pricing for its pay-TV services, including DSTV and GOtv, until a review of the proposed price hike was completed. Despite this directive, the company proceeded with the planned price adjustment on March 1, 2025, an act the commission describes as a clear violation of its oversight.

In response to this defiance, the FCCPC filed charges against MultiChoice Nigeria and John Ugbe at the Federal High Court in Lagos. The lawsuit includes three counts of offenses, with the agency accusing the company of deliberately obstructing its inquiry by going ahead with the price hike despite the explicit order to refrain from doing so.

A post on the social media platform X (formerly Twitter) by the FCCPC emphasized the agency’s stance, stating, “Following this blatant disregard for regulatory oversight, the FCCPC has filed charges against MultiChoice Nigeria and John Ugbe at the Federal High Court, Lagos Judicial Division, on three counts of offenses for willfully obstructing the commission’s inquiry by implementing a price hike contrary to directives.”

At the time of reporting, MultiChoice Nigeria had not provided any immediate response to the charges.

This legal action is the latest in a series of regulatory challenges the company has faced. In 2024, MultiChoice reached a settlement with Nigerian tax authorities, agreeing to pay approximately $37.3 million in taxes for its local subsidiary.

Reuters

Aliko Dangote re-enters top 100 richest individuals list in Forbes 2025

According to Forbes' real-time ranking of billionaires, Dangote’s net worth climbed to approximately $23.9 billion from $13.4 billion last year. This increase of around $10.5 billion (78.4 per cent) was driven by the recent commencement of operations of Dangote Petroleum Refinery commenced operations in Lagos.

With a 92.3 per cent stake in the Dangote refinery, the 67-year-old billionaire has re-entered the ranks of the top 100 richest individuals for the first time since 2018. He also stands out prominently on the list as the only African among the top 100 richest individuals in the world.

South African billionaire Johann Rupert holds the second spot in Africa, at 164th with a net worth of $14.2 billion. Nicky Oppenheimer and family come in third place, at 288th position, with a net worth of $9.5 billion.

The Dangote refinery, with a capacity of 650,000 barrels per day, is the largest in Africa and the seventh-largest refinery globally. Since the commencement of operations of the petroleum refinery in Lagos, Dangote has disrupted the Nigerian government’s oil monopoly and has overcome substantial challenges from the Nigerian “oil mafia.”

The refinery is already influencing global energy dynamics after it recently signed a deal to export two cargoes of aviation fuel to Saudi Arabia. Locally, the refinery is already influencing the import-export market, as Nigeria's petrol imports have reached their lowest level in eight years, reducing reliance on foreign suppliers and strengthening fuel independence.

In an interview with Forbes, Dangote shared his vision for African industrialization, stating, "We have to build our nation by ourselves. We have to build our continent by ourselves, not rely on foreign investment." He described the refinery project as "the biggest risk of my life," emphasizing the stakes involved for his financial future.

Zainab Usman, Director of the Africa Programme at the Carnegie Endowment for International Peace, remarked that many Nigerians believe Dangote to be a hero, a true industrialist driving transformative change in the country and in Africa.

By Victor Oluwole, Business Insider Africa

Related story: Nigeria's richest man Aliko Dangote takes on the 'oil mafia'

Dangote unveils new Nigerian-made Peugeot vehicle, boosts domestic auto industry

Dangote Peugeot Automobiles Nigeria Limited (DPAN), the official manufacturer and marketer of Peugeot vehicles in Nigeria, has begun assembling the GT model of the Peugeot 3008—a globally successful and award-winning SUV.

Equipped with a high-performance 1.6-liter turbo engine, the Peugeot 3008 GT expands DPAN’s existing lineup from its state-of-the-art assembly plant in Kaduna.

This marks a significant step in Dangote’s commitment to boosting local vehicle production and enhancing Nigeria’s auto industry.

Peugeot's first assembly of the 3008 model in Africa took place in Ghana in 2022.

This marked a significant milestone in the brand’s expansion into the continent, specifically the production of its globally acclaimed Peugeot 3008 SUV.

The assembly was carried out at the Silver Star Auto-owned Tema Assembly Plant, a result of a partnership between Citroën, Peugeot, and Silver Star Auto that began in 2019.


DPAN products

Dangote Peugeot Automobiles Nigeria Limited (DPAN) began production with the re-launch of the Peugeot brand in Nigeria, starting with the local assembly of the Peugeot 301 at its Kaduna plant.

The company has since expanded its lineup to include the Landtrek pickup, 3008, 5008, and the latest 508 models.

Dangote entered Nigeria’s automobile industry in 2016 when his group, alongside the Kaduna State Government and the Bank of Industry, acquired a majority stake in Peugeot Automobile.

By 2017, he secured a license for a Peugeot assembly plant, and in 2022, Dangote Peugeot Automobiles Nigeria Limited (DPAN) began operations.

DPAN, a joint venture with Stellantis Group, the Kano and Kaduna state governments, and Dangote Industries, operates from the Greenfield Ultima Assembly Plant in Kaduna, with a daily capacity of 120 vehicles.

Expanding into commercial vehicles, Dangote launched the Dangote Sinotruk West Africa Ltd (DSWAL) CKD plant in Lagos.

The plant assembles heavy-duty, medium, and light trucks, producing up to 10,000 units annually and creating 3,000 jobs.

Nigeria’s auto manufacturing market

Nigeria is making strides in boosting local vehicle production to reduce reliance on imports and drive industrial growth.

Key players like Innoson Vehicle Manufacturing (IVM), Stallion Group, Nord, and Dangote Group have boosted the local vehicle assembly market, increasing domestic production capacity.

The Nigerian Automotive Industry Development Programme (NAIDP) 2024-2034 aims to promote local manufacturing of vehicle spare parts and reduce imports, which cost around $1 billion annually.

Developing local components like batteries, tyres, and exhaust systems is crucial for strengthening the industry.

By boosting local manufacturing, Nigeria can reduce its dependence on imports and achieve broader national goals for economic development.

By Solomon Ekanem, Business Insider Africa

Related story: Nigeria's Dangote Refinery to operate at full capacity in 30 days