United Bank for Africa (UBA) has agreed a landmark $100 million financing deal with the Lagos State Government and e-hailing platform Lagride to help transform Nigeria’s ride-hailing sector and boost economic opportunities for thousands of drivers. The Memorandum of Understanding (MoU) was signed in Lagos on Tuesday, signalling a long-term partnership that will see up to 3,500 drivers move from renting vehicles to owning their own cars over a four-year period.
At the signing event, UBA’s Group Managing Director and Chief Executive Officer, Oliver Alawuba, said the arrangement formalises a strategic collaboration between the bank, Lagride and the state government. He explained that the primary aim of the agreement is to provide drivers with access to financing that enables them to purchase vehicles rather than continue renting them. This transition, he said, will help create financial security and give drivers greater control over their livelihoods.
Mr Alawuba described the initiative as an important step towards economic empowerment and financial inclusion in Lagos, one of Africa’s busiest and most populous cities. He said the programme will include structured and professional driver training, designed to improve discipline, road conduct and overall safety for passengers throughout the state. According to him, better training will not only benefit drivers but will also make travel safer and more reliable for commuters across Lagos.
Speaking about the broader impact of the investment, Alawuba said the $100 million facility goes beyond vehicle financing. It is intended to create sustainable employment, deepen financial inclusion and open up opportunities for the growing youth population in the city and beyond. He stressed that bold interventions like this are needed to support economic growth and shared prosperity in Nigeria’s transport sector.
A notable feature of the initiative is the introduction of vehicles powered by compressed natural gas (CNG). Alawuba highlighted that using cleaner energy vehicles will help reduce pollution and contribute to a healthier urban environment. He also emphasised that the repayment terms for the financing have been structured to make it manageable for drivers to pay over time, making vehicle ownership a realistic goal rather than a distant dream.
Lagride’s Chairman, Diana Chen, welcomed the partnership and said the investment will benefit not just drivers but also customers who use the platform. She explained that the programme will shift the model from simple access to ride-hailing services to one that genuinely empowers drivers as vehicle owners. By expanding the fleet and increasing capital inflows, riders will also see improved service delivery.
Chen noted that CIG Motors will take responsibility for vehicle maintenance, drawing on its decade of experience in Nigeria, while national workshops from the GAC Motor network will ensure the cars remain safe and roadworthy. She added that Lagride wants to work with more partners beyond UBA and other financial institutions to build an inclusive success story in the transport sector.
Babatunde Ajayi, Head of SME Banking at UBA, said the bank is also engaging cooperatives, insurance providers and vehicle suppliers to create a supportive ecosystem for drivers. Meanwhile, one beneficiary at the event, a female driver, said the programme is a “dream come true” that will help her and others grow financially and gain independence through asset ownership.
The new financing agreement is expected to reshape Lagos’s ride-hailing landscape, giving drivers a path to ownership, strengthening the mobility sector, and improving urban transport for residents.
