The Lagos state Governor, Mr Babajide Sanwo-Olu on Monday, oversaw the signing of a new joint venture partnership between the state-owned corporation IBILE Holdings Limited and CIG Motors Company Limited.
A statement from the Lagos state government noted that the partnership involves the acquisition of 5,000 brand-new vehicles for the LAGRIDE fleet, injecting $260 million into Lagos’ economy.
In the coming weeks, the state is set to receive the first delivery of 2,000 vehicles, with the remaining units to be delivered in phases.
Notably, the new fleet will include 1,000 electric vehicles in the state’s efforts to reduce its fossil fuel footprint.
The Governor stated that this initiative is part of his administration’s vision to transform and modernise public transportation.
The goal is to provide the state with an integrated urban transit system, offering a sustainable alternative to the outdated vehicles currently used for transportation.
He 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 partnership between Lagos State Government and CIG Motor Company Limited in the acquisition of 5,000 brand new GAC vehicles for the 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. The introduction of electric-powered vehicles into the fleet is to change the narrative.”
Furthermore, Commissioner for Transportation, Mr Seun Osiyemi, stated that the deal would help LAGRIDE meet the increasing demand and improve customer satisfaction while also enhancing fintech support solutions.
Osiyemi noted that the initiative would create more jobs in driving, maintenance, and administrative roles, boosting the local economy by increasing accessibility and improving the transportation system.
Managing Director of IBILE Holdings Limited, Mr Tobi Lawal, explained that the collaboration would enhance transportation infrastructure, boost tourism, and improve the aesthetics and efficiency of the state’s transport system.
Managing Director of CIG Motor Company Limited, Chief Diana Chen, emphasised that the partnership had strengthened confidence and credibility in the firm’s business relationship with the Lagos Government, noting that the company had adhered to all terms of its agreements with the state.
