The Lagos State Government says it has signed a $260 million deal with Chinese automaker, CIG Motor Company Limited, to roll out 5000 smart taxis across the state.
The Lagos State Government says the deal sealed through IBILE Holdings Limited in partnership with CIG Motor Company Limited will see the government acquiring the 5000 smart taxis for an enhanced technological interaction and promote energy transition within the state.
According to the Lagos State Governor, “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.”
Governor Babajide Sanwo-Olu of Lagos State.
Governor Sanwo-Olu: Smart taxis to extend e-hailing services
Lagos State government says that under the supervision of Governor Babajide Sanwo-Olu on July 15, a joint venture agreement was signed between IBILE Holdings Limited and CIG Motors Company Limited for the purchase of the 5000 smart taxis.
Lagos State says the initiative is part of the government’s commitment to providing comfort and convenience to residents and passengers by improving logistics and operations in the state.
The services that will be offered through this investment include smart taxi and e-hailing services, carpooling, chauffeur services, and tech-driven logistics. These services are designed to enhance safety, reduce turnaround time, and provide digitally enabled public transportation options, according to Lagos State.
In the first phase of the project, the Lagos State is expected to receive 2000 units of the new vehicles, with the remaining units to be delivered in subsequent phases. The fleet will include 1000 electric vehicles, showcasing the Lagos State Government’s dedication to reducing reliance on fossil fuels and minimizing carbon emissions, according to Governor Sanwo-Olu.
In 2022, the Lagos Government launched the LAGRIDE initiative, introducing 1000 new cars and mini SUVs to improve transportation options and convenience for commuters. The new investment deal will further enhance efficiency and elevate smart mobility in the e-hailing sector, with vehicles specifically designed for Lagos’ terrain to operate with low carbon emissions and advanced technological features.
Sanwo-Olu says that the latest investment represents a significant step towards achieving a more sustainable and technologically advanced transportation system in Lagos.
As a part of Sanwo-Olu’s administration’s vision to transform and modernise public transportation, he says that “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 LAGRIDE initiative.”
According to the Lagos State Governor, “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.”
Mr. Seun Osiyemi, Commissioner for Transportation, expresses his enthusiasm for the partnership between LAGRIDE and the motor companies, underscoring the positive impact it will have on meeting the increasing demand and fulfillment ratio of customers.
He highlights the importance of investing in modern and sustainable transport solutions to support the State Government’s efforts in achieving ‘a safer, cleaner, faster, and digitally equipped transportation system under the THEMES Agenda.”
Osiyemi also points out the benefits of the investment, such as creating more job opportunities in driving, maintenance, and administrative roles, as well as boosting the local economy through increased accessibility and improved transportation systems.
On his part, Mr. Tobi Lawal, Managing Director of IBILE Holdings Limited says that the collaboration with the motor companies would result in enhanced transportation infrastructure, benefiting tourism and improving the aesthetics and efficiency of the Lagos State’s transport system.
Chief Diana Chen, Managing Director of CIG Motor Company Limited, expresses confidence in the partnership with the Lagos Government, highlighting the firm’s commitment to fulfilling all terms of the agreement and contributing to Nigeria’s GDP and economic growth. She assured that LAGRIDE would become a source of pride for Lagos.
CIG Motors Co., Ltd, which represents GAC Motor in Nigeria, established distribution networks in the country and Africa since 2013, according to the company which promises to offer performance and cutting-edge technology to luxurious interiors and advanced safety features, designed to provide an unparalleled driving experience.
Established in 1989 by the Lagos State Government, IBILE Holdings Limited serves as a pivotal entity in diversifying the economy and generating financial returns and socio-economic benefits for Lagos State and its citizens. IBILE says that it operates as an empowerment scheme for the residents of Lagos State, offering a unique opportunity for ownership of a car upon completion of full payment with a low initial deposit.
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