• August 5, 2021

Lagos, CIG Motors Collaborate To Set Up Vehicle Assembly Plant


(AGENDAWATCHDOG) – Lagos State Governor, Mr. Babajide Sanwo-Olu, has unveiled a new e-hailing taxi scheme to redefine road transportation in the State, following the signing of a partnership agreement with CIG Motors Company Limited for the take-off of “Lagos Ride” scheme with pilot fleet of 1,000 units of brand new Sport Utility Vehicles (SUVs).

Also at the ceremony held at the State House in Marina, Sanwo-Olu formally sealed a Joint Venture Agreement with the automobile company for the establishment of Vehicle Assembly Plant in the State. In the next 24 months, Lagos will have a jointly-run factory for the production of different classes of brand new cars.

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Establishment of the Vehicle Assembly Plant in Lagos was part of the bilateral agreements reached by the State Government and Chinese Investors’ Community when the Governor visited the Asian country in November, 2019. IBILE Holdings Limited, a State-owned corporation, will 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. He said the “Lagos Ride” scheme was in fulfilment of his administration’s desire to give residents a better choice in road transportation by offering a safe, efficient and modern cab model in line with policy thrust of his Government’s T.H.E.M.E.S agenda.

Speaking further, the governor said that 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.

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 installment. At the end of the credit tenure, the operators will have the opportunity to fully own the cars, adding that the scheme would offer operators flexible repayment plan and affordable savings for vehicles’ maintenance. The establishment of the Vehicle Assembly Plant was in furtherance of the governor’s economic growth blueprint for Lagos State.

PROJECTED IMPACT: The Assembly Plant and the taxi scheme would boost socio-economic activities and support the development of ancillary enterprises in transportation sector. The Joint Venture Agreement would revive industrialisation, drive up skilled youth employment and create wealth, boost tourism, and encourage technology sharing, adaptation, and advancement.


Agenda Watchdog

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