NAC, WesBank, South Africa sign MOU on consumer financing of Nigeria Assembled Vehicles

 The National Automotive Council (NAC) on Friday said it had signed a Memorandum of Understanding (MOU) with the WesBank of South Africa, to offer vehicle finance to retail and corporate purchasers in Nigeria.

WesBank is a division of FirstRand Bank Limited of South Africa.

In a statement, the Director General of NAC, Engr. Aminu Jalal, said the MOU was signed in Johannesburg, South Africa on Oct.16, with the aim of stimulating the sale of locally assembled vehicles in Nigeria.

 The NAC management team that went for the signing headed by the Director General comprised of other key officials including Mr Luqman Mamudu, Director, Policy and Planning and Engr Waheed Odetoro, Director Industrial Infrastructure.

 He said the Chief Executive Officer of WesBank, Mr Chris De Kork, signed oh behalf of his company in the presence of other WesBank management team.

 Jalal said that the Nigerian government recently approved the National Automotive Industry Development Plan (NAIDP) to attract investments from vehicle manufacturers globally and grow the supply of locally-manufactured vehicles.

He said the agreement would allow WesBank work closely with NAC to develop vehicle financing solutions specifically for vehicles built in Nigeria, with the aim of making them affordable for the average Nigerian car user.

“We are delighted that the Nigerian government and NAC have chosen WesBank as their partner of choice,” said Chris de Kock, CEO of WesBank.

“Nigeria is the largest economy in Africa and this is an excellent opportunity to grow our footprint on the continent, in line with the FirstRand strategy.”

According to him, the WesBank was already well represented in other African markets including Botswana, Lesotho, Namibia, Mozambique, Swaziland, and Zambia.

He said moving to Nigeria would extend its reach to the northern parts of the continent, presenting an opportunity to participate in some of the larger African economies where vehicles sales are expected to experience substantial growth over time.

“We believe that we have the required experience and expertise to operate successfully in developing countries given our own experience in South Africa over the last 50 years.

“Our ability is to find innovative solutions and to develop country-specific products and processes we think will be well-received by the Nigerian automotive market and its buyers,” De Kock said.

“It is also our hope that in due time, this venture can become the biggest market for WesBank in Sub-Saharan Africa outside of South Africa.”

WesBank is South Africa’s market leader in vehicle and asset finance. This position has been achieved through successful partnerships with leading manufacturers, offering finance to consumers for both locally-manufactured and imported models.

It would be recalled that the NAC DG recently announced that the Council was packaging a Vehicle Financing Scheme which would make Nigerian assembled vehicles easily affordable.

The scheme is developed with a convenient payment terms spread over a period of about 4 years at a very low interest rate.

It is also intended to assist vehicle assembly plants in Nigeria to gain high volume within a very short time so as to facilitate local components development.