United Bank for Africa (UBA) on Tuesday signed a Memorandum of Understanding (MoU) with Lagride and the Lagos State Government for a $100 million facility aimed at deploying 3,500 vehicles to support Lagride’s ride-hailing operations in Lagos.
Speaking at the signing ceremony in Lagos, Oliver Alawuba, Group managing director of UBA, said the agreement formalised a strategic partnership among UBA Plc, Lagride and the Lagos State Government. He explained that the objective of the collaboration is to finance up to three thousand five hundred vehicles for Lagride drivers operating within Lagos State.
Alawuba said the initiative would enable at least 3,500 drivers to transition from renting vehicles to owning their own cars over a four-year period. He described the programme as a major step toward economic empowerment, noting that it would be backed by structured and professional driver training. According to him, the training component is expected to improve discipline, orderliness and overall road conduct across Lagos, while passengers will benefit from 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 said the motivation behind the $100 million investment goes beyond vehicle financing, stressing that Lagos requires bold interventions that empower people, expand financial inclusion and create sustainable employment opportunities, particularly for the growing youth population in the state and beyond.
Alawuba also highlighted the introduction of compressed natural gas vehicles as a key feature of the programme, noting that the use of clean energy-powered vehicles would contribute to a healthier and more sustainable environment. Addressing concerns around safety and insecurity associated with some ride-hailing services in Lagos, he said drivers under the programme would be professionally trained, ensuring that passengers enjoy a safe and secure experience when using Lagride.
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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.
