Popularly known as PAN around the country, PAN Nigeria Limited has remained an iconic name in Nigeria’s automobile industry. The company was conceived in 1969 by the then Federal Military Government under the leadership of General Yakubu Gowon, along other five auto assembly plants and was commissioned in 1972, while full production began in 1975, with about 230 cars per day capacity in three shift. While other assembly plants that started production within the same period in 70s couldn’t withstand the hash economic environment in the country due to policy inconsistency of the government, miraculously, PAN developed corporate shock-absorbers that made the company stay afloat, even though challenges still remain. In 2013, Mr. Ibrahim Boyi, a seasoned managerial expert with specialization in corporate strategic management, was appointed the Managing Director of PAN. Before his appointment, he had a successful career in the oil and gas industry, culminating in Executive Director of Total Nigeria Limited, one time Managing Director of Eterna Oil & Gas, Gaslink Nigeria Ltd and Chairman/CEO, Lenux Group. Since his appointment as MD of the Nigerian auto giant, the company has witnessed remarkable changes. In this interview with Benjamin Ike, Boyi highlighted areas where he thinks public and private oil companies, as well as regulatory bodies can synergize with his company in terms of mutual patronage and others. Excerpts:
You have been well established in the oil and gas industry top management before your current position in the automobile industry, how are the people in the oil and gas constituency seizing this opportunity to patronize your vehicles for project and other utility uses, since they are among the highest corporate buyers of such products?
Automobile customers, irrespective of the sector in which they operate, require vehicles that are reliable, easy to operate and maintain and provide overall value for money. Vehicles, like any other capital equipment, are expected by customers to render returns on their investments. We take this view in developing and sales of Peugeot vehicles or any other brand that we sell.
Since coming on board, PAN has made deeper inroads into the private sector clients, which include a good number of the oil and gas operators. We still plan to secure more oil and gas sector clients.
Apart from private corporate entities, are government agencies in the oil and gas sector, such as NNPC and the like buying your vehicles?
PAN has recovered a lot of its old customers through the introduction of modern, competitive and reliable vehicles made for Nigerian roads. We have received orders from some oil-related government agencies and subsidiaries of NNPC. We have also been accredited by the NNPC group as a contractor/supplier of vehicles.
We are confident that NNPC group and its joint venture partners will start to patronize us soon. This will be in compliance with both The Local Content Act and the Executive Order.
We do have a local content support institution under the Federal Ministry of Petroleum Resources called the Nigerian Content Development and Monitoring Board, do you have any partnership with, or any support from them?
The Local Content Development Policy of the Oil and Gas Industry has not focused sharply in the auto industry. The Auto Industry Plan itself contains elements of patronage for local auto plants. Sadly, the implementation by various government agencies has been weak and porous. We will be glad to see a more rigorous implementation of the Local Content Law, the patronage policy under the NAIDP and even recently the Executive Order no 3 for local companies and products.
You recently introduced your pick-up van to the Nigerian domestic market, a vehicle that runs on diesel, a fully deregulated and available fuel, did you consider the factor of PMS being a subsidized and often scarce fuel in deciding to run these vehicles on diesel engines?
We introduced the Peugeot Pick-up in Nigeria, in January 2019. The Peugeot pick-up had occupied a pride of place in Nigeria and Nigerians. We needed to reconnect that heritage and reclaim our leadership position in the Pick-up segment of the market.
The choice of diesel is by design, to achieve power, ruggedness and long life of the vehicle. Diesel is the preferred fuel for heavy duty equipment and utility trucks globally. It’s also safer and less flammable than petrol. Globally, it is cheaper than petrol and also environmentally cleaner.
However, Nigerians do not appreciate such quality of diesel due to the subsidy regime of the government on petrol. This aberration will change anytime the government withdraws the subsidy.
But even at that, diesel vehicles still offer sizable value in mileage per liter, greater power delivery and longer life of the engines.
The oil industry had long embraced diesel engines for their relative safety in oil and gas environment, such as plants, depots, refineries, etc.
Apart from this diesel-powered pick-up van, what other range of products do you have and what do you think makes them competitive over other brands operating in the country?
PAN has identified the key automobile segments and has now placed a competitive vehicle in each of those segments. In the lower and mid passenger car segments, we have the Peugeot 301 (Access, Active and Allure). In the high/luxury sedan segment, we have the Peugeot 508 (Active, Executive and GT Line), while in the mid SUV segment, we have the world award winner, Peugeot 3008 SUV. We also have the Peugeot Partner B9 for Multipurpose Van and the Peugeot Pick-up for Utility.
In the commercial vehicle segment, we will be introducing the Higer Buses with configurations of 14 to 16 seats and 19-21 seats. PAN Nigeria is positioning itself as a one-stop partner for all our customers’ automobile needs.
The issue of after-sales service for safer travel is a major one and we are aware you have auto training institution that trains personnel in such vocations, what is your current level of operation in this area and who are your major partners both in the private and public sectors?
PAN and Peugeot have been reputed for their accessible after-sales care in every nook and cranny of Nigeria. This reputation is given a new lease now through our foremost Automotive Training Center, the PAN Learning Center. Through the well-equipped training facilities of the center, we constantly upgrade the training of our technical support staff, the technical staff of our dealership and network partners in the latest automobile repair technics.
To ensure qualified support of all our customers, we have reevaluated and re-accredited our dealerships that are able to provide such support across some major cities in the country. To improve access to support by our customers, we also started the accreditation of Independent Vehicle Repairers as well as the roll-out of our Shade Tree Quick Service centers across the country.
To reduce the overall cost of ownership and quick repairs turnaround, PAN equips its ware houses with critical service and repair spare-parts at the most affordable prices. PAN restructured its logistics and procurements processes for parts to deliver efficiency to our customers.
Your company has never looked back and has always forged ahead in business since it was commissioned in 1972 and commenced production of vehicles in 1975, what has been the secret of survival in the same market where many automobile factories have been forced to close shop?
From my own assessment, what accounted for the resilience of PAN is its strength of processes (assuring quality of its products and services), investment in training and developing its people and quality of its infrastructure. This should serve as lesson for all firms that want to survive and live for very long.
PAN has evolved and adapted quickly to the prevalent unstable operating environment and policy flip-flops of government. Such adaptation is not without consequences or set backs to the progress of the Company, operationally and financially. The reason why the call for government to focus on ease of doing business and policy stability and predictability.
What is your assessment of the Nigerian Auto Industry and advice to government.
The auto industry is the bedrock of industrialization for any country and Nigeria must promote, protect and ensure its development. Its impacts on GDP, employment, skills development, technology transfer and linkages to composite industries is well documented.
Regrettably, the National Auto Industry Development Plan (NAIDP), rolled out in 2013 by Federal Government of Nigeria, has failed to drive the development of the sector due to poor implementation and enforcement by relevant govt agencies.
The policy document itself is well crafted and caters for a holistic development of the sector, but its implementation has undermined its effectiveness to achieve its objectives.
As stakeholders, we call on the government, to thoroughly review the implementation of the NAIDP and address the gaps to ensure its success.