LagRide, the Lagos State Government-backed e-hailing platform, has taken a major leap forward in its bid to transform urban mobility and driver welfare after securing a $100 million financing facility from United Bank for Africa (UBA). This strategic partnership is aimed at scaling up LagRide’s Drive-to-Own programme, a scheme designed to help drivers transition from renting vehicles to becoming owners of productive assets and future mobility entrepreneurs.
At its core, the initiative targets approximately 3,500 LagRide drivers, offering them a clear path from being gig workers to owning their vehicles outright. This shift is intended not just to enhance livelihoods but to embed drivers deeper into the economic fabric of Lagos’ burgeoning transport ecosystem.
According to a statement shared by LagRide, the investment will be allocated to extend the current Drive-to-Own programme and strengthen the platform’s capacity to support drivers with robust financing options. The scheme is built around a structured repayment model that considers performance, safety compliance, and repayment discipline, all of which are crucial for financial institutions like UBA to underwrite the loans.
LagRide’s Chairperson, Chief Diana Chen, emphasized that the programme is more than a financing deal; it is part of a broader strategy to build a technology-enabled, bankable mobility sector that uplifts drivers and creates long-term value. In her words, the goal is to help drivers evolve from everyday operators into business owners and “mobility investors”, capable of managing fleets and expanding economic opportunities for themselves and their communities.
Speaking at the signing event, UBA Group Managing Director/CEO Oliver Alawuba described the partnership as a critical move towards inclusive economic growth in Nigeria. He noted that transportation is a major economic driver and that enabling drivers to own vehicles promotes financial inclusion, job creation, and broader participation in formal economic activity.
The programme also dovetails with Lagos State’s existing efforts to modernize its transport system. LagRide has been rolling out new electric and lower-emission vehicles, part of a larger push to tackle congestion and pollution in one of Africa’s busiest cities. Expanding the fleet with cleaner and more efficient vehicles also supports environmental sustainability goals while creating new maintenance, training, and operational jobs in the city’s mobility sector.
Despite the optimism around the financing deal, LagRide’s journey has not been without challenges. Drivers previously expressed concerns about app performance, limited trip requests in some areas, and issues with insurance and maintenance support. These operational hurdles highlight the complexity of scaling digital platforms in congested and highly competitive transport markets like Lagos.
However, stakeholders see the UBA partnership as a pivotal opportunity to address some of these challenges by injecting capital and introducing better financial structures for drivers. The financing facility is expected to offer more predictable and sustainable repayment terms than informal rental arrangements, which have been cited as a barrier to reliable earnings and asset accumulation for transport workers.
These developments come at a time when Lagos is seeking innovative ways to reduce the economic losses associated with traffic congestion, which have been estimated at trillions of naira annually due to wasted time, fuel costs, and reduced productivity. Expanding efficient and well-financed ride-hailing options like LagRide could contribute to easing gridlock and improving mobility for millions of residents.
At the individual level, drivers who participate in the Drive-to-Own scheme could see a meaningful improvement in their financial standing. Owning a vehicle not only increases their potential earnings but also builds personal equity, a form of wealth creation that has ripple effects on household financial stability and local economic circulation.
The $100 million financing from UBA strengthens asset ownership for drivers and injects fresh capital into Lagos’ transport value chain, potentially boosting consumer spending and stimulating related sectors such as vehicle maintenance, insurance, and fintech services. By formalizing driver ownership, the programme supports broader economic participation and productivity in Africa’s largest city.
