In a landmark move poised to reshape the ride-hailing landscape in Nigeria’s commercial hub, United Bank for Africa (UBA) Plc has signed a $100 million facility with the Lagos State Government and Lagos-backed e-hailing firm LagRide to finance vehicles for 3,500 drivers, enabling them to transition from daily rentals to full ownership over the next four years.
The signing ceremony took place in Ikeja on Tuesday, marking a strategic partnership aimed at deepening financial inclusion, boosting economic empowerment and expanding structured, safer urban mobility across the state.
UBA Group Managing Director and Chief Executive Officer, Oliver Alawuba, said the initiative goes beyond conventional vehicle financing to deliver sustainable empowerment for drivers operating within Lagos.
He said, “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.”
Alawuba said that the structured training element is expected to improve discipline, orderliness and overall road conduct on Lagos streets while enhancing passenger safety.
He also highlighted that the deployment of compressed natural gas (CNG) vehicles will contribute to a cleaner, more sustainable urban environment.
“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,” he explained.
Alawuba emphasised that the motivation behind the $100 million investment transcends vehicle ownership. “Lagos deserves more. We must drive financial inclusion, empower people, and create employment opportunities for the teeming youth population in Lagos State and beyond,” he said.
LagRide Chairman, Diana Chen, said the programme marks a turning point for the drivers, by offering a pathway from earning a daily income to becoming asset owners and business participants.
“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,” she said.
She noted that an expanded fleet will translate into improved service delivery for commuters across Lagos.
Chen mentioned that CIG Motors will be responsible for vehicle maintenance, leveraging its decade-plus experience and nationwide workshop network to ensure safety and reliability on the roads.
She also expressed openness to broader partnerships beyond UBA and financial institutions to make the initiative more inclusive.
At the ceremony, drivers welcomed the development as a dream come true. One of the beneficiaries, Dorothy Etim, spoke about her seven-year journey in the e-hailing space, including her recent six-month tenure with LagRide.
“I am extremely happy about this initiative and grateful that UBA has been able to make this happen for us. This is a chance at financial independence,” she said.
Etim recounted how previous bank support enabled her to grow a network of female drivers from 21 to 500 nationwide and encouraged others into the profession.
