An indigenous technology-driven logistics company, KariGO Logistics Limited, has signed a partnership agreement 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 on Monday, KariGO 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, assembled and sold by PMC.
Speaking at the signing of the deal in Lagos, the managing director of KariGO Logistics, Mr. Chris Oyeniyi 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 dealers had seen a decline in the number of new purchases of trucks.
He said experienced drivers seeking to become truck or haulage business owners are the worst hit.
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.
“It is a partnership that seeks to eliminate the old rickety, rusty, retiree 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,” said Oyeniyi.
Oyeniyi also said the partnership with PMC would give Nigerian banks greater confidence to offer financing for the acquisition of trucks for Nigerian truck owner at 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.
“The partnership also allows for drivers training, mechanical training, fleet management training 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.
In his remarks, the managing director of PMB Limited, Mr. Philip Seng expressed his delight to work with KariGO Logistics to boost the acquisition of new trucks by Nigerians.