UBA Partners Lagos State, Lagride on $100m Vehicle Ownership Scheme for Drivers
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The United Bank for Africa (UBA) has entered into a $100 million partnership with Lagride and the Lagos State Government to finance up to 3,500 vehicles for ride-hailing drivers operating within Lagos State.
Speaking at the signing ceremony in Lagos, Oliver Alawuba, Group Managing Director of UBA, said the agreement formalises a strategic collaboration aimed at enabling drivers to transition from renting vehicles to full ownership over a four-year period. He explained that the initiative is designed as an economic empowerment programme supported by structured and professional driver training.
According to Alawuba, the training component will help improve discipline, orderliness, and road conduct across Lagos, while enhancing passenger safety and security. He added that the programme is expected to deepen financial inclusion, drive shared prosperity, and support sustainable growth for all stakeholders involved.
He said the motivation behind the investment goes beyond vehicle financing, stressing that Lagos requires bold interventions that empower people, expand access to finance, and create sustainable employment opportunities, particularly for the state’s growing youth population.
Alawuba also highlighted the introduction of compressed natural gas (CNG) vehicles as a key feature of the initiative, noting that the use of clean energy-powered vehicles aligns with efforts to promote a healthier and more sustainable environment. Addressing concerns around safety and insecurity associated with some ride-hailing services, he said drivers under the scheme will be professionally trained to ensure a safer and more secure experience for passengers.
He added that interest in the model is already emerging from other states, although the immediate focus remains on successful implementation in Lagos. According to him, the repayment structure has been carefully designed with a tenure that supports ease of repayment and sustainable ownership, positioning the programme as a long-term empowerment initiative rather than short-term support.
Diana Chen, Chairman of Lagride, said the $100 million investment delivers clear benefits for consumers, drivers, and riders. She explained that the model represents a shift from simple platform access to one built on ownership, structure, and long-term success for drivers.
Chen said riders will benefit from increased capital inflows and an expanded vehicle fleet, leading to improved service delivery. On vehicle maintenance, she disclosed that CIG Motors will handle maintenance, leveraging its over ten years of operational experience in Nigeria. She added that GAC Motor, a nationwide brand with workshops across the country, will support reliable maintenance and ensure vehicles remain safe and roadworthy.
She noted that Lagride remains open to partnerships beyond UBA and other financial institutions, stating that the company aims to build an inclusive success model that carries multiple stakeholders along.
Also speaking, Babatunde Ajayi, Head of SME Banking at UBA, said the bank is working with cooperatives, insurance providers, and vehicle suppliers to build a complete ecosystem that supports drivers. He noted that the initiative’s impact extends beyond individual beneficiaries, contributing to MSME growth, job creation, and improved urban mobility. According to him, the programme reflects UBA’s commitment to financing productivity and economic progress.
Dorothy Akpan, a Lagride captain, described the initiative as a dream come true. She said she has spent seven years in the e-hailing space and joined Lagride six months ago, committing herself fully to the learning process. She expressed appreciation for the programme and UBA’s role in making vehicle ownership possible.
Akpan recalled that a similar bank-backed initiative four years ago enabled her to grow a network of female drivers from twenty-one to five hundred nationwide, including the creation of a dedicated women drivers’ group. She said the current empowerment has come at the right time and encouraged more women and unemployed individuals to take advantage of the opportunity, stressing the importance of determination, financial independence, and passion for the profession.
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