Lagos invests $260m to overhaul Bus Transport System’

Governor 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, bolstering Lagos economy with $260 million investment.

 

In the coming weeks, the State is expected to take delivery of 2,000 units of the new vehicles in the first phase; the rest are to 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.

 

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

 

The new investment deal, Sanwo-Olu said, will further enhance efficiency and elevate smart mobility in the e-hailing sector. The vehicles, he said, will be tailor-made for Lagos terrain to operate on low carbon emissions, improved technological interaction and energy transition.

 

The Governor said 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modernise public transportation, giving the State an integrated urban transit system as a sustainable alternative to outdated vehicles being used for transportation.

 

Sanwo-Olu said: “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.”

Sanwo-Olu said the partnership was not only about smart taxi and e-hailing taxi service, but added that the deal would also kick off car pooling services, chauffeur services and tech-driven logistics services

The Governor said the strategic partnership would enhance safety, turnaround time and digitally enabled means of public transportation. He said the relationship with the automobile company had been mutually beneficial, urging 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. 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. 

Credit: LASG