Lagos State Governor, Mr Babajide Sanwo-Olu, on Monday, supervised the signing of another Joint Venture partnership between a State-owned corporation, IBILE Holdings Limited, and CIG Motors Company Limited for the acquisition of 5,000 brand new vehicles to the fleet of LAGRIDE, aimed at bolstering Lagos economy with $260 million investment.
Following the signing of the partnership, the state, in the coming weeks, is expected to take delivery of 2,000 units of the new vehicles in the first phase, while the rest would 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 Lagos State government, in 2022, launched its first LAGRIDE initiative, an e-hailing taxi scheme, with 1,000 brand new cars and mini SUVs, giving commuters better transportation options and riding convenience.
Speaking at the event, which took place at Lagos House, Ikeja, Governor Sanwo-Olu said the new investment deal would further enhance efficiency and elevate smart mobility in the e-hailing sector.
According to him, the vehicles will be tailor-made for Lagos terrain to operate on low carbon emissions, improved technological interaction and energy transition, noting that the initiative was part of his administration’s vision to transform and modernise public transportation, giving the state an integrated urban transit system as a sustainable alternative to outdated vehicles being used for transportation.
“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.
“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,” he said.
Sanwo-Olu said the partnership was not only about smart taxi and e-hailing taxi service, adding that the deal would also kick off car pooling services, chauffeur services and tech-driven logistics services.
He said the strategic partnership would enhance safety, turnaround time and digitally enabled means of public transportation, pointing out that the relationship with the automobile company had been mutually beneficial.
The governor, therefore, 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.
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“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, in his own remark, said the deal would help LAGRIDE meet increasing demand and fulfilment ratio of customers, while also improving Fintech support solutions.
Osiyemi added that the scheme would boost the local economy with increased accessibility, thereby improving the transportation systems, among others.
“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,” he said.
Managing Director of IBILE Holdings Limited, Mr. Tobi Lawal, said the collaboration would deliver benefits, including enhanced transportation infrastructure, adding that the effort would also boost tourism, improve the aesthetics and efficiency of the state’s transport system.
Also speaking, Managing Director of CIG Motor Company Limited, Chief Diana Chen, said the partnership had further built confidence and credibility in the company’s business relationship with Lagos government, stressing that the firm had kept all terms of its dealings with the state.
“Whatever we promised, we delivered. We have kept to all terms of our previous agreements with Lagos and we will still honour the term of this new partnership. We are committed to helping Nigeria raise its GDP and economic growth. We will make LAGRIDE a Lagos’ pride,” he said.
NIGERIAN TRIBUNE