Lagos, CIG Motors Establish Vehicle Assembly Plant, Ride-Hailing Scheme

Lagos, CIG Motors Establish Vehicle Assembly Plant, Ride-Hailing

Lagos State Government and CIG Motors Company Limited have formally signed a Joint Venture Agreement for the establishment of Vehicle Assembly Plant in the State.

Lagos State Governor, Mr. Babajide Sanwo-Olu, at the ceremony held at the State House in Marina on Thursday also unveiled a new e-hailing taxi schemein partnership with the Chinese automobile firm

The scheme called “Lagos Ride” will kick-off with a pilot fleet of 1,000 units of brand new Sport Utility Vehicles (SUVs).

A statement issued at the end of the event stated that in the next 24 months, Lagos would have a factory for the production of different classes of brand new cars.

The agreements were signed by the Managing Director of IBILE Holding Limited, Mr. Abiodun Amokomowo, and the Vice Chairman of CIG Motors Company Limited, Mr. Linus Idahosa, in the presence of the Governor, Deputy Governor, Dr. Obafemi Hamzat, and Lagos Attorney General, Mr. Moyosore Onigbanjo.

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It added that IBILE Holdings Limited, a state-owned corporation, would be driving the two investment agreements on behalf of the Lagos State Government.

Sanwo-Olu said the new ride-hailing taxi was a social intervention programme initiated with an objective to create jobs and economic opportunities for residents of the state.

The governor said the taxi scheme, which is expected to fully take-off in the next 6 months, had been structured along a profitability model and designed to be self-sustaining for expansion and growth.

He said, “I am elated to unveil the Lagos State Taxi Scheme, which is another innovative policy of this administration targeted at making life easier for Lagosians, improving mobility and creating a seamless multi-modal transportation system.

“The scheme, which is to be known as “Lagos Ride”, is in fulfilment of our desire to give Lagos residents better transportation choices.

“The modern ride-hailing service is one of the state government’s socio-economic intervention programmes, which will be professionally managed in line with global best practices.

“Our social intervention programmes are tailored towards the eradication of poverty, provision of jobs and other employment opportunities as well as the provision of basic necessities, that make good governance our people’s reality.

Under the taxi scheme, Sanwo-Olu said the Cooperative Society in the Ministry of Wealth Creation and Employment would give operators brand new SUVs for a period of four years, during which they would pay a monthly instalment.

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At the end of the credit tenure, he said the operators would have the opportunity to fully own the cars.

The governor said the scheme would offer operators flexible repayment plan and affordable savings for vehicles’ maintenance.

He said: “As we formally sign the Joint Venture Agreement for the establishment of Motor Assembly Plant, Lagosians should expect a roll-out of vehicles from this plant within the next 18 months.”

The Chairman of CIG Motors Company Limited, Diana Chen, pledged the full commitment of the automobile firm to the agreement.

Chen, who is also the Vice Chairman of China-Africa Business Council (CABC), disclosed that the automobile firm would sponsor 50 students for a two-year engineering training in a vocational school in China to strengthen its partnership with the Lagos Government.

She said, “My teams are ready to work with 100 percent effort to build GAC MOTORS in Nigeria in the highest level of a brand. This international Joint Venture Project will soon bloom up in the Chinese business communities both in Nigeria and China.

“I assure you that, we will use this partnership as a best example to introduce and promote a Greater Lagos where greater opportunities abound.”

About Author

Ife Ogunfuwa is an award-winning reporter who is versed in reporting business and economy, technology, gadgets reviews, telecoms, tax, and business policy review, among others. She loves telling stories behind the numbers. She has professional certifications in business and financial reporting. You can reach her via – [email protected]

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