By Kunle Awosiyan
The last few months have seen Lagos State Governor, Mr. Babajide Sanwo-Olu delivering some of the promises he made during the campaign ahead of the 2023 general elections.
The governor inaugurated the Lagos Blue Rail Line last month and last week he joined the Chinese automobile company, CIG Motors to open GAC Assembly plant in Ogba area of Ikeja as a fulfilment of another promise.
During the inauguration, Sanwo-Olu said that GAC Car Assembly Plant in Ogba, Lagos would create more jobs and strengthen technical skills among the workforce.
In 2020, the Lagos State Government and CIG Motors Company Limited signed a Memorandum of Understanding (MoU) to establish the GAC Motor Nigeria CKD factory in Ogba and also the LAGRIDE project – 1000 brand new GAC cars for smart taxi in Lagos.
With the success story of LAGRIDE in which about 2000 Lagosians had benefited, Echonews gathered that the state government did not have any option than to activate the agreement it signed with the CIG motors to open an assembly plant where GAC car would be produced in large scale to solve the challenges of mobility and also create jobs for the teeming population of youths in the state.
Though investigation showed that some drivers of this e-hailing taxi initiative, LAGRIDE have been complaining that the management forcefully took away the vehicles from them after depositing N700,000 and payment of at least N9,000 daily target.
However, some other LAGRIDE drivers commended the scheme, adding that it had improved their living standard. They said that it was true that the management of the scheme actually retrieved the vehicles from some of their colleagues due to their unproductivity.
Mr. Muyiwa Adelaja, a LAGRIDE driver told Echonews that many of his professional colleagues were on the long queue to take the opportunity and now that an assembly plant had been set up in Lagos, it would be easier to tap into the business.
“We need more of this brand of vehicle in Lagos and we are happy that the state government has brought the company here to assemble,” Adelaja said.
Speaking, another user of GAC car, Mr. Alex Adeleye spoke about the vehicle’s low fuel consumption, which according to him makes it a perfect brand for Nigeria at this time. “It is a luxury car and the fact that the LAGRIDE scheme had allowed payment by installment, it is a great opportunity for any serious person to make money.
“The partnership between Lagos State and CIG Motors represents a pivotal step towards greater industrialization, more jobs, and technical training for our people,” Sanwo-Olu said adding that the partnership, born in the challenging days of the pandemic, has flourished, not only giving birth to the GAC Motor Nigeria CKD factory but also aiding the growth and expansion of our LAGRIDE project. These initiatives signify our commitment to progress, innovation, and the betterment of Lagos State”
According to him. the new car aassembly plant in Ikeja will create more jobs in Lagos.
He said that LAGRIDE] drivers are better off now. They are able to sort their bills and lift their families out of poverty. We are pulling people out of depression and essentially making commitments to ensure that people are productive and self-sustaining.
He is convinced that in a few years, LAGRIDE will push beyond the struggle to be the third most dominant player in Lagos’ ride-hailing ecosystem.
The facility will be jointly-run by the State Government and its partner for the production of different classes of brand new cars.
The governor said that the establishment of the Vehicle Assembly Plant in Lagos was part of the bilateral agreements reached by his administration and Chinese Investors’ Community during the Governor’s business trip to China in November 2019.
Already, 2,000 units of brand new GAC vehicles had been successfully assembled in Lagos ahead of the formal opening of the facility. The plant was built with production capacity to assemble 5,000 units of new vehicles yearly in the first phase, while generating thousands of direct and indirect jobs.
The accomplishment, Sanwo-Olu said, reflected the “promising synergy” between international partnerships and local talent, stressing that the development underscored Lagos’ openness to investments that would foster job creation, skill development, wealth creation, and entrepreneurial opportunities.
He said: “Today, we applaud a remarkable milestone of assembling 2,000 brand new vehicles right on Lagos soil, as our vibrant city now hosts a thriving hub of automotive excellence. The opening of this Vehicle Assembly Plant is a glowing emblem of our State’s openness to investments that foster job creation, skill development, wealth creation, and entrepreneurial opportunities. The milestone is not merely a numeric achievement; it’s an epitome of multi-sectoral progress that stands to benefit Lagosians.
“The ripple effect of this investment extends far beyond the automotive sector. It has ushered in a new dawn of employment, providing our industrious youths with well-deserved jobs, thereby significantly reducing unemployment in Lagos. The skill transfer and technical training programmes initiated by CIG Motors have empowered many unemployed individuals, arming them with the requisite skills to thrive in today’s competitive job market.
“This initiative is nothing short of visionary. Through increased economic activity, supply chain development and ancillary businesses, wealth is being created and evenly distributed among our people. This synergy will not only provide affordable and quality transportation for Lagosians but also will open up a plethora of entrepreneurial opportunities for many.”
Sanwo-Olu said the Completely Knocked Down (CKD) factory, which spans 35,000 square metres, would raise the quality of life and standard of living, as it would crash the cost of brand new GAC vehicles in local markets and also reduce dependence on second-hand vehicles imported from overseas.
He said although the plant was built to assemble cars locally, the efficiency would meet international standards. GAC vehicles, he said, were designed for comfort and easy maintenance, adding: “They are durable, well suited to our roads and climate.”
The Governor pledged his commitment to the growth of the automobile sector through business-friendly regulations, provision of infrastructure and investments in quality technical education to produce world-class workforce.
Chairman of CIG Motors, Chief Diana Chen, said the assembly workshop was designed in three phases to respond to market demands of GA4, GS3, GS4 and GS8 brands of GAC products.
The full operation of assembly plant, she said, would raise annual production capacity from 5,000 to 50,000 units yearly.
Chen said: “We are proud to have Lagos Government as our JV partner. Today, in Ogba, Ikeja, Lagos State, we have a fully automated world class vehicle production line that is tested, verified and fully operational; owing primarily to the successful PPP between our company and the Lagos State.
“I specially commend Governor Sanwo-Olu for his transformational and excellent leadership. The success of this project is a loud message to the global investment community that Nigeria, especially Lagos is ready for business.”
The assembly plant has production and quality inspection workshops, comprising three automated lines – the Trim Line, Chassis Line and Final Line. The factory is built to GAC CKD-factory standards and can match the current dismantled CKD assembly and forward assembly methods.
