The Swedish government, in conjunction with a consortium of international banks, has pledged a US$1.125 billion credit facility for any local haulage company operating in Nigeria that is interested in buying premium Mack trucks from its authorised dealer in the country, Lanre Shittu Motors.
The private Guardian newspaper reported Tuesday that the move was to address the challenges being faced by local haulage companies in accessing funds locally from the banks due to the high interest rate and other contingent modalities associated with the credit facility.
Vice-President, Business Development, Mack Global Brand, Frank Oliveria, said the decision of the Swedish government and the international banks to pledge the credit facility was meant to boost the usage of premium Mack trucks vehicles in Nigeria.
“Nigeria is a very important market for Mack trucks, and having new safe, efficient Mack trucks is very important for Nigeria. We now have a solution to the main financing road block that used to hinder customers from purchasing new Mack trucks.
“Prohibitively high interest rates offered by local banks have made it difficult for haulage and construction companies to purchase new premium heavy trucks, many time forcing them to settle for older used models not suitable for the difficult conditions in Nigeria. Mack is changing that,” the paper quoted Oliveria as saying.
He said customers interested in purchasing new premium heavy-duty trucks would have access to international financing rates at a single-digit rate, and that the gesture was made possible by the use of international banks guaranteed by European and American Export Credit Agencies (ECAs).
Under the facility arrangement, qualified customers could secure financing of up to 85 per cent of the total purchase price of the new equipment. The remaining 15 per cent is required as a down payment before the trucks would be delivered.