United Bank for Africa (UBA) on Tuesday signed a Memorandum of Understanding (MoU) with Lag ride and the Lagos State Government for a $100 million facility aimed at deploying 3,500 vehicles to support Lag ride’s ride-hailing operations in Lagos.
Speaking at the signing ceremony in Lagos, UBA Group Managing Director, Oliver Alawuba, said the agreement formalised a strategic partnership between UBA Plc, Lagride and the Lagos State Government. He explained that the collaboration aims to finance up to 3,500 vehicles for Lagride drivers operating across Lagos State.
Alawuba said the initiative would allow at least 3,500 drivers to move from renting vehicles to owning their own cars within a four-year period. He described the programme as a significant step toward economic empowerment, adding that it would be supported by structured and professional driver training. According to him, the training is expected to promote discipline, orderliness and improved road conduct in Lagos, while offering passengers a safer and more secure ride experience. He added that the initiative would deepen financial inclusion and drive growth and shared prosperity for all stakeholders.
He noted that the $100 million investment extends beyond vehicle financing, stressing the need for bold interventions that empower people, expand financial inclusion and create sustainable employment, particularly for the state’s growing youth population.
Alawuba also highlighted the deployment of compressed natural gas (CNG) vehicles as a key component of the programme, noting that clean energy-powered vehicles would contribute to a healthier and more sustainable environment. Addressing safety concerns linked to some ride-hailing services in Lagos, he said drivers under the programme would be professionally trained to ensure a safe and secure experience for passengers using Lagride.
He added that interest in the model is already growing, with several states expressing interest in adopting a similar framework. However, he said the immediate focus is to ensure successful implementation in Lagos before expanding to other parts of the country. Alawuba explained that the repayment structure has been designed to support a smooth transition from renting to ownership, with a tenure long enough to ensure ease of repayment and sustainable ownership, making the initiative a long-term empowerment programme.
Diana Chen, chairman of Lagride, said the benefits of the $100 million investment are clear for consumers, drivers and riders. She explained that if the consumer is seen as the captain and the driver as the owner, the initiative represents a shift from a system where people merely access a platform to one that delivers empowerment, structure and long-term success for vehicle owners. She described this as a significant change for the consumer, the driver and the rider.
Chen said riders will benefit from increased capital inflows and a larger fleet of vehicles, which will translate into improved service delivery. On vehicle maintenance, she said CIG Motors, a well-established company with over 10 years of experience in Nigeria, will be responsible. She added that GAC Motor is a recognised brand nationwide, with workshops spread across the country, enabling Lagride to guarantee proper maintenance and ensure that all vehicles remain safe and functional on the road.
She noted that Lagride welcomes partnerships beyond UBA and other financial institutions, adding that the company’s goal is to build an inclusive success story that carries more stakeholders along on the journey.
Babatunde Ajayi, head of SME Banking at UBA, said the bank is partnering with key stakeholders, including cooperatives, insurance providers and vehicle suppliers, to build a complete ecosystem that supports drivers.
He noted that the impact of the initiative extends beyond individual beneficiaries, as it also contributes to the growth of micro, small and medium enterprises, drives employment expansion and improves urban mobility.
According to him, UBA’s belief in financing productivity and progress is reflected in its commitment to empowering drivers while moving the broader economy forward.
Also speaking at the event, Dorothy Akpan, a female 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, during which she committed herself fully, knowing it was a learning process. According to her, the outcome has been rewarding, and she expressed deep appreciation for the initiative and UBA’s role in making it possible.
Akpan said this was her second experience benefiting from a bank-backed empowerment programme, recalling that similar support 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 group for women drivers. She said she was also able to encourage many of her riders to take up the same occupation.
Describing herself as a proud female driver, Akpan said she has navigated the challenges of the profession and wants to encourage other women to pursue similar opportunities, stressing that determination is key. She added that driving is both her calling and her passion, noting that the empowerment has come at the right time. She encouraged unemployed individuals to take advantage of the opportunity to join the platform, emphasising the importance of financial independence and expressing gratitude for the support she has received.