The Lagos State Government through the state-owned corporation, Ibile Holdings Limited, has sealed a Joint Venture (JV) deal with CIG Motors for the acquisition of 5,000 brand new vehicles to expand the fleet of the state’s e-hailing service, LAGRIDE.
The state governor, Babajide Sanwo-Olu on Monday, supervised the signing of the investment, which is worth $260 million.
In the first phase of the deal, the State will take delivery of 2,000 units of the new vehicles, while the rest are to be delivered in tranches. The new fleet will have 1,000 electric vehicles, demonstrating the commitment of the state government to reducing dependence on fossil fuels and pruning the carbon footprint.
It would be recalled that the state government, in 2022, launched its first LAGRIDE initiative with 1,000 brand new cars and mini SUVs.
The new investment deal, Sanwo-Olu said, will further enhance efficiency and elevate smart mobility in the e-hailing sector. The vehicles, he disclosed, will be tailor-made for Lagos terrain to operate on low carbon emissions, improved technological interaction and energy transition.
The governor noted that the initiative was part of his administration’s vision to transform and modernise public transportation by giving the State an integrated urban transit system as a sustainable alternative to outdated vehicles being used for transportation.
Sanwo-Olu said: “This is a transportation solution that we are developing to meet all our citizens’ needs to commute safely and comfortably within the metropolis. We are using our investment arm as a vehicle to execute what will become a successful Joint Venture (JV) partnership between Lagos State Government and CIG Motor Company Limited in the acquisition of 5,000 brand new GAC vehicles for LAGRIDE initiative.
“The partnership with CIG Motors started two years ago with 1,000 brand new cars and we have seen the benefits to our people in terms of job creation and economic empowerment. We are set to enhance the scope and expand the fleet in order to extend the e-hailing service to other parts of the State.
“Introduction of electric-powered vehicles into the fleet is to change the narrative. We will begin to see the drop in carbon footprint. This demonstrates our commitment to energy transition towards sustainable energy sources.”
The partnership, according to the governor, was not only about smart taxi and e-hailing taxi service, it would also kick-off car pooling services, chauffeur services and tech-driven logistics services.
Other benefits of the partnership as listed by the governor, include enhancing safety, improve turnaround time and digitally-enabled means of public transportation.
While expressing satisfaction that the relationship with the automobile company had been mutually-beneficial, the governor urged other private players in the transportation sector to key into the market and initiate schemes that would enhance mobility in the State.
“We will be seeing improvement in operation, advancement in technology, improved market share, extensive research and rapid movements. We will be seeing Lagos living up to its potential as a city operating an international standard, environmentally-sustainable and smart mobility system deserving of its status. We are happy with the investment decision we are making today. We believe Lagos and its residents will reap the benefits of cleaner and better mode of transportation,” Sanwo-Olu said.
Commissioner for Transportation, Mr. Seun Osiyemi, said the deal would help LAGRIDE meet increasing demand and fulfilment ratio of customers, while also improving Fintech support solutions.
Aside creating more jobs in driving, maintenance and administrative roles, Osiyemi said the scheme would boost the local economy with increased accessibility, thereby improving the transportation systems.
“This is an investment in modern and sustainable transport solutions, in furtherance of the state government’s efforts in actualising a safer, cleaner, faster, and digitally-equipped transportation system under the THEMES+ Agenda,” the Commissioner said.
Managing Director of IBILE Holdings Limited, Mr. Tobi Lawal, said the collaboration would deliver benefits, including enhanced transportation infrastructure. He added that the effort would also boost tourism, improve the aesthetics and efficiency of the State’s transport system.
Managing Director of CIG Motors Company Limited, Chief Diana Chen, said the partnership had further built confidence and credibility in its business relationship with the Lagos State Government, stressing that the firm had kept all terms of its dealings with the State.
She said, “Whatever we promised, we delivered. We have kept to all terms of our previous agreements with Lagos and we will still honour the terms of this new partnership. We are committed to helping Nigeria raise its GDP and economic growth. We will make LAGRIDE a Lagos’ pride.”
