By Olasunkanmi Akoni

Lagos State Governor, Mr. Babajide Sanwo-Olu, on Monday, signed a new joint venture Lagride partnership deal with CIG Motors, with the acquisition and release of 5,000 new vehicles with the existing 1,000 for operation.

Sanwo-Olu, on behalf of IBILE Holdings, signed the agreement with the Chairman of CIG Group, Chief Diana Chen, at a ceremony, held at the Lagos House, Ikeja.      

Also at the signing of the deal were: Consul General of the People’s Republic of China, Ms. Yan Yuqing; deputy governor of Lagos State, Dr. Obafemi Hamzat; Commissioner for Transportation, Oluwaseun Osiyemi, Special Adviser on Transportation to the Governor, Sola Giwa and General Manager of IBILE Holdings, Mr. Tobi Lawal, Nigerian singer/record producer, David ‘Davido’ Adeleke.

In the coming weeks, the venture is expected to take delivery of 2,000 units of the new vehicles in the first phase while the rest will be delivered in tranches.

IBILE Holdings Limited was established in 1989 by the Lagos State Government as a key agent to diversify the economy and deliver both financial returns and socio-economic benefits to the State and its citizenry.

The company which is investing in the transportation sector has over the years focused on investments in the Banking, Insurance, Building and Construction, and Real Estate sectors; with a portfolio valued at over ₦15 billion as at 31 December 2014.

The IBILE which acronym stands for Ikorodu, Badagry Ikeja, Lagos Island and EPE five divisions of the state, created to spur economic growth of the state economy by deploying Capital for investments.

Speaking on the occasion, the governor said, “Our new fleet will have 1,000 electric vehicles, demonstrating a commitment to reducing our dependence on fossil fuels and pruning the carbon footprint.

“We launched our first LAGRIDE initiative in 2022 with 1,000 brand new cars and mini SUVs, giving commuters better transportation options and riding convenience.

“The vehicles will be tailor-made for our terrain to operate on low carbon emissions, improved technological interaction, and energy transition.

“This partnership is not only about e-hailing taxi services, it will also kick off carpooling services, chauffeur services, and tech-driven logistics services.

“Our relationship with CIG has been mutually beneficial, and we urge other private players in the transportation sector to key into the market and initiate schemes that would enhance mobility in the state.

“We are interested in seeing Lagos live up to its potential as a city operating an international standard, environmentally sustainable, and smart mobility system deserving of its status.”

Recall that in line with the ongoing transportation sector reform, in 2021, Sanwo-Olu, launched a modern ride e-hailing service Lagos Ride in the state.

The initiative, with code; “LagRide,” according to the state government was to further ensure seamless transportation system for teeming commuting populace in the state.

The service with the tagline, “ride in comfort” was formally unveiled in March 2021 as a new e-hailing taxi scheme to redefine road transportation in the state.

The Governor also signed 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, deployed within the Lagos metropolis in the first phase.

The branded SUVs then typically cost upwards of ₦10 million ($26,000) in Nigeria, but the governor revealed that the Cooperative Society in the Lagos Ministry of Wealth Creation was assigned as driver to pay monthly instalments for a period of four years. At the end of the period, the drivers will be able to fully own the cars.

This move is yet another ride-hailing initiative with close ties to the state government.

According to Sanwo-Olu, at the unveiling of the project earlier, “The initiative is targeted at improving mobility and creating a multi-modal transportation system for Lagosians.”

“The scheme is in fulfilment of our desire to give residents better transportation choices.

“The modern ride service is one of the State Government’s socio-economic intervention programmes, which will be professionally managed in line with global best practices.”

Background

In March 2020, two entrepreneurs, Nathaniel Gideon and Segun Cole founded Ekocab, a ride-hailing service that looked to rival Uber and Bolt, in partnership with the Lagos state government.

The timing of the launch coincided with the period when people were still feeling the effects of the ban on Lagos commercial motorcycle, popularly called “Okada” and there was fresh regulatory attention on ride-hailing powerhouses, Uber and Bolt.

Heated controversy trailed the launch, and the app was greeted with harsh reviews on the Google Play Store.

While it was not clear how more cars and SUVs would ease transportation in Lagos, the Lagos state government revealed plans for alternative means of transportation like boats, buses, and an intra-state railway system.

The Lagos state government also said it will be partnering with CIG Motors Limited, a Chinese vehicle manufacturer, to set up a vehicle assembly plant in Lagos.