KariGO Logistics Limited has sealed a partnership deal with Perfection Motors Company (PMC) Limited to ease the purchase of the FAW brand of trucks by Nigerians who are into road haulage and transportation businesses.
Under the terms of the agreement signed in Lagos yesterday, KariGO, a technology driven logistic company would provide a flexible financing option (secured from various creditor establishments) to assist existing and prospective truck owners in Nigeria to purchase the FAW brand of trucks which is being assembled and sold in by PMC.
Chris Oyeniyi, managing director of KariGO Logistics, who spoke at a ceremony to consummate the deal said the partnership with PMC had become necessary given the difficulties experienced by investors in the road haulage and transport business in sourcing for funds to purchase new trucks or replace their ageing fleet.
He said the high interest rate from the banks and the lack of support from truck dealership had seen a decline in the number of new purchases of trucks.
Experienced drivers who sought to become truck or haulage business owners were the worst hit, he said.
Oyeniyi however said beneficiaries would be truck owners on the platform of KariGO Logistics.
“What we have done is simply to introduce a revolutionary truck purchase or replacement formula that allows Nigerians on our platform own the brand new 2019 FAW truck at low interest rates from various banks and financial institutions,” said Oyeniyi.
“It is a partnership that seeks to eliminate the old rickety, rusty, retiree ( R.R.R.) trucks that are causing fatal accidents on Nigerian roads. In the months ahead, existing and prospective truck owners who come on board the KariGo platform will find it easier to replace their old trucks or purchase new ones to grow their businesses,” he added.
Oyeniyi also explained that the partnership between KariGO and PMC would give Nigerian banks greater confidence to offer financing for the acquisition of trucks for Nigerian truck owner at an almost zero risk to the bank.
“With the KariGO business model, we offer every stakeholder a win-win situation. Many new SME truck owners and drivers would be able to own and drive more brand new trucks,” Oyeniyi said.
“The partnership also allows for drivers training, mechanical trainings, fleet management trainings and spares replacement. This business model will create a minimum of 7,200 new jobs in the next 24months and create a life time income for the average Nigerian who is willing to work hard and be their own bosses,” he added.
Apart from the bank, our focus is to bring in as many individual investors to buy one or more trucks. Not to manage it, but to give it to existing truck owners on our platform, who already manages trucks and drivers.
The investor who will through us be paid monthly for an agreed upon period as repayment towards their investment.
Its a steady cash-cow (income), similar to a fixed income product.
This is one product we have designed for people looking for alternative investment that brings in monthly cash.
Philip Seng, managing director of Perfection Motors Company Limited, who also spoke at the event expressed his delight to work with Karigo Logistics to boost the acquisition of new trucks by Nigerians.