United Bank for Africa has entered into a $100m partnership with the Lagos State Government and LagRide to finance vehicles for 3,500 ride-hailing drivers, a move aimed at transitioning drivers from renting cars to vehicle ownership.
The Memorandum of Understanding was signed between UBA and LagRide on Tuesday in Ikeja, Lagos. Speaking at the ceremony, the Group Managing Director/Chief Executive Officer of UBA, Oliver Alawuba, said, “What we have today is the signing ceremony of a partnership among UBA Plc, LagRide, and the Lagos State Government. The purpose of this partnership is to finance up to 3,500 vehicles for Lag Ride drivers in Lagos State.
“What this means is that at least 3,500 drivers will transition from renting vehicles to owning their own cars within a period of four years. This represents real economic empowerment for drivers, and it also comes with structured training.
By providing proper training for drivers, we expect to see improved orderliness and better road conduct on Lagos roads. For Lagos passengers, this partnership will deliver a more secure and safer ride experience across the state.”
He added that the overall motivation for the initiative is to drive financial inclusion, growth, and progress for all stakeholders.
“Beyond the immediate benefits, the motivation behind this $100m investment is clear. Lagos deserves more. We must drive financial inclusion, empower people, and create employment opportunities for the teeming youth population in Lagos State and beyond.
“Another key component of this initiative is the introduction of CNG vehicles. These vehicles will run on clean energy, contributing to a healthier and more sustainable environment. There have been concerns about safety and insecurity around some ride services in Lagos, but the drivers under this programme are professionally trained, ensuring passengers enjoy a safe and secure experience with Lag Ride.”
Alawuba maintained that interest in this model is already growing, with several states expressing interest.
“Our focus is to get it right in Lagos first, and others will follow. The repayment structure for this facility has been designed to allow a smooth transition from renting to ownership. The tenure is long enough to ensure ease of payment and sustainable ownership, making this a long-term empowerment programme,” he asserted.
Also speaking at the signing ceremony, the Chairman of LagRide, Diane Chen, said, “From today, we are moving from a system where people merely walk up to a platform to one that offers empowerment, structure, and success to the owner of the car. That is a significant change for the consumer, for the driver, and for the rider.
“For riders, the major change is that we will bring in more capital and more vehicles, which will translate into better service delivery. In terms of maintenance, CIG Motors, a well-established company in Nigeria with over ten years of experience, will be responsible. GAC Motor is a well-known brand across the country, and with workshops spread nationwide, we are able to provide and guarantee proper maintenance so that all vehicles remain functional and safe on the road.”
Chen also disclosed that Lag Ride was open to partnerships beyond UBA and the banking sector.
“Beyond UBA and the banks or financial institutions involved, we welcome partnerships with different stakeholders. Our goal is to make this success story inclusive and to carry more people along on this journey,” she said.
One of the drivers at the ceremony, Dorothy Etim, spoke to journalists about her experience.
She said, “Being the only woman standing here today, this moment feels like a dream come true for me. I have been in the e-hailing space for seven years, and I have been with LagRide for six months. I gave my dedication and my all because I knew it was a learning process, and today I am seeing the reward. I am extremely happy about this initiative and grateful that UBA has been able to make this happen for us.
“As a matter of fact, this is my second time benefiting from a bank. Four years ago, I was also empowered by a bank, and through that support, I was able to grow a network of female drivers from twenty-one women to five hundred nationwide. We even created a group specifically for women drivers. I was also able to encourage many of my riders to take up this same occupation.
“I am a very proud female driver. I have been around, I have navigated the challenges, and I want to encourage every other woman out there, determination is key. There are so many people sitting idle, and I want to encourage them that today, you can come on board and start driving. There is nothing like financial independence.”
She added that the support from the bank came at the right time.
