The Lagos State Governor, Babajide Sanwo-Olu has commissioned a new vehicle assembly plant belonging to CIG Motors, a Chinese automobile company. The plant located on WEMPCO Road in Ogba-Ikeja axis of Lagos was commissioned on Tuesday, October 24, 2023,
It is noteworthy that the inauguration ceremony of the fully equipped automobile assembly plant was holding 2 years after the Lagos State Government signed an agreement with the Chinese firm on the project.
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 facility will be jointly-run by the State Government and its partner for the production of different classes of brand-new cars.
Establishment of the Vehicle Assembly Plant in Lagos was part of the bilateral agreements reached by the Sanwo-Olu administration and Chinese Investors’ Community during the Governor’s business trip to China in November 2019.
Speaking on the accomplishment, Sanwo-Olu said the commissioning 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.
“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.
The Governor also 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.