Sanwo-Olu Inaugurates Vehicle Assembly Plant in Lagos, Unveiling of First 2,000 Cars for the Market

On Tuesday, October 24, 2023, the Lagos State Governor, Babajide Sanwo-Olu, presided over the grand inauguration of a state-of-the-art vehicle assembly plant, marking a significant milestone in the collaboration between the Lagos State Government and CIG Motors, a prominent Chinese automobile company. This event unfolded two years after both entities inked a landmark agreement for the establishment of this groundbreaking factory, situated along WEMPCO Road in the vibrant Ogba district of Lagos.

This cutting-edge facility, now fully operational, stands as a testament to the commitment of the Lagos State Government to bolstering its manufacturing and automotive industry. The assembly plant will be a shared endeavor, with the government and CIG Motors working in tandem to manufacture a diverse range of brand-new automobiles, catering to various market segments.

The genesis of this partnership can be traced back to the international engagement spearheaded by Governor Sanwo-Olu in November 2019, during his official visit to China. During this trip, key bilateral agreements were forged with the Chinese Investors' Community, setting the stage for this momentous collaboration. The decision to establish the vehicle assembly plant in Lagos aligns with the broader vision of fostering economic growth, technology transfer, and job creation within the region.

With the inauguration of this assembly plant, Lagos is poised to experience a surge in manufacturing activity, creating job opportunities for its citizens and contributing to the state's economic development. Furthermore, this initiative will play a pivotal role in meeting the growing demand for automobiles within Lagos and the wider Nigerian market, reducing the reliance on imports and bolstering the domestic automotive industry.

The commissioning of the vehicle assembly plant signifies a significant leap forward in the economic partnership between Lagos State and CIG Motors. As the plant gears up for full-scale production, it promises to revitalize the local automotive sector, stimulate innovation, and enhance the state's economic resilience, ushering in a new era of industrial and technological progress.

A total of 2,000 cars have already been successfully assembled.

Lagos has already witnessed the successful assembly of 2,000 new GAC vehicles in anticipation of the formal inauguration of the assembly facility. This plant, in its initial phase, is geared to assemble a yearly production of 5,000 new vehicles, promising to create both direct and indirect employment opportunities in the thousands.

Governor Sanwo-Olu underscored the significance of this achievement, highlighting the productive collaboration between international partnerships and local talent. He emphasized that this development underscores Lagos' unwavering commitment to embracing investments that foster job creation, skills enhancement, wealth generation, and entrepreneurial prospects.

In the words of the Governor, "Today, we celebrate a significant milestone – the assembly of 2,000 brand new vehicles right here on Lagos soil, marking our city as a thriving hub of automotive excellence. The establishment of this Vehicle Assembly Plant stands as a shining symbol of our state's welcoming stance toward investments that spur job creation, skill development, wealth generation, and entrepreneurial opportunities. This milestone is not merely a numerical feat; it symbolizes multi-faceted progress that will benefit the people of Lagos."

He continued, "The positive impacts of this investment extend well beyond the automotive sector. It ushers in a new era of employment, offering valuable job opportunities for our diligent youth and significantly reducing unemployment in Lagos. The skill transfer and technical training programs initiated by CIG Motors have equipped many previously unemployed individuals with the skills needed to thrive in today's competitive job market."

Governor Sanwo-Olu praised the visionary nature of this initiative, highlighting its far-reaching implications. "Through increased economic activity, the development of supply chains, and the growth of ancillary businesses, wealth is being generated and equitably distributed among our citizens. This synergy will not only provide affordable and high-quality transportation for Lagos residents but will also unlock a wealth of entrepreneurial opportunities for many."

Governor Sanwo-Olu expressed his determination to significantly reduce the cost of GAC vehicles.

Governor Sanwo-Olu unveiled an impressive Completely Knocked Down (CKD) factory sprawling across 35,000 square meters. He emphasized that this facility would bring about an enhancement in the quality of life and the overall standard of living for the populace. It is expected to drastically reduce the cost of brand new GAC vehicles in local markets and diminish the reliance on imported second-hand vehicles.

Highlighting the factory's proficiency, Governor Sanwo-Olu stressed that even though the plant is primarily focused on local assembly, the efficiency of production would align with international standards. GAC vehicles, known for their comfort and ease of maintenance, are touted as durable and well-suited to the local road conditions and climate.

The Governor made a resolute commitment to fostering the growth of the automobile sector. This commitment would be realized through the implementation of business-friendly regulations, the development of vital infrastructure, and strategic investments in technical education to cultivate a world-class workforce capable of contributing to the sector's ongoing progress.