LASG, CIG Motors sign $260 million joint venture deal

The Lagos State Government (LASG) has entered into a significant joint venture partnership with CIG Motors Company Limited to enhance the Lagos Ride (LAGRIDE) e-hailing taxi service.

Governor Babajide Sanwo-Olu supervised the signing of the agreement on Monday, which involves the acquisition of 5,000 new vehicles, including 1,000 electric cars, with a total investment of $260 million.

The new fleet will begin arriving in the coming weeks, with 2,000 units expected in the first phase and the remainder to follow in tranches. This initiative aims to boost the Lagos economy and demonstrate the state’s commitment to reducing fossil fuel dependence and lowering its carbon footprint.

LAGRIDE, which was launched in 2022 with 1,000 new cars and mini SUVs, has provided commuters with better transportation options and increased convenience. The latest investment is expected to further enhance efficiency and promote smart mobility within the e-hailing sector.

Governor Sanwo-Olu highlighted that the vehicles will be specially designed for the Lagos terrain, ensuring low carbon emissions and improved technological interaction. He emphasized that this move is part of his administration’s vision to modernize public transportation and create an integrated urban transit system.

“This is a transportation solution that we are developing to meet all our citizens’ needs to commute safely and comfortably within the metropolis,” said Sanwo-Olu. “We are using our investment arm as a vehicle to execute what will become a successful joint venture partnership between the 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. We will begin to see a drop in carbon footprint. This demonstrates our commitment to energy transition towards sustainable energy sources.”

The Governor also mentioned that the partnership would expand beyond smart taxis and e-hailing services to include carpooling, chauffeur services, and tech-driven logistics services. This strategic move is expected to enhance safety, reduce turnaround time, and provide digitally enabled public transportation options.

“We will be seeing improvement in operation, advancement in technology, improved market share, extensive research, and rapid movements,” said Sanwo-Olu. “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. We are happy with the investment decision we are making today. We believe Lagos and its residents will reap the benefits of a cleaner and better mode of transportation.”

Commissioner for Transportation, Mr. Seun Osiyemi, stated that the deal would help LAGRIDE meet increasing customer demand and improve Fintech support solutions. He noted that the initiative would create more jobs in driving, maintenance, and administrative roles, thus boosting the local economy.

“This is an investment in modern and sustainable transport solutions, in furtherance of the State Government’s efforts in actualizing a safer, cleaner, faster, and digitally equipped transportation system under the THEMES Agenda,” said Osiyemi.

Managing Director of IBILE Holdings Limited, Mr. Tobi Lawal, said the collaboration would enhance transportation infrastructure, boost tourism, and improve the aesthetics and efficiency of the state’s transport system.

Chief Diana Chen, Managing Director of CIG Motor Company Limited, expressed confidence in the partnership, emphasizing that CIG Motors has consistently honored its commitments to the Lagos government.

“Whatever we promised, we delivered. We have kept to all terms of our previous agreements with Lagos, and we will still honor the terms of this new partnership. We are committed to helping Nigeria raise its GDP and economic growth. We will make LAGRIDE a Lagos’ pride,” said Chen.