United Bank for Africa Plc has signed a $100 million funding agreement to help about 3,500 LagRide drivers in Lagos move from renting cars to owning their own vehicles.
The deal, signed on Tuesday in Lagos, involves UBA, the Lagos State Government and LagRide, the state-backed ride-hailing platform. The programme is expected to run for about four years and is aimed at improving drivers’ income, professionalism, and road safety across the state.
Speaking at the signing ceremony, UBA Group Managing Director and Chief Executive Officer, Oliver Alawuba, said the partnership would boost job creation, financial inclusion and safer transportation in Lagos.
“This partnership is designed to finance up to 3,500 LagRide drivers in Lagos State,” Alawuba said.
“What this means is that at least 3,500 drivers will transition from renting vehicles to owning them within a period of about four years. This is a major step toward economic empowerment for the drivers.”
He explained that beyond access to finance, the programme also includes structured training for drivers to raise standards and reduce safety risks on Lagos roads.
“The initiative also includes structured training, which will improve professionalism and road safety across Lagos,” he said.
“For passengers, this partnership translates into safer and more secure rides across Lagos routes. Overall, the initiative is expected to drive financial inclusion, economic growth and social progress.”
A key part of the agreement is the use of vehicles powered by compressed natural gas, in line with Nigeria’s push for cleaner and cheaper energy alternatives.
“Another important aspect is that the vehicles involved will run on compressed natural gas, meaning cleaner energy and a better environment for everyone,” Alawuba said.
He also noted that the professional training of drivers would address growing concerns about security within ride-hailing services in the state.
“There have been concerns around insecurity in ride-hailing services in Lagos, but these drivers will be professionally trained, ensuring a safer and more reliable passenger experience with LagRide,” he added.
Also speaking at the event, Chairman of LagRide, Diana Chen, said the initiative was designed to place drivers at the centre of the platform’s growth.
“We are moving drivers from being individual workers to empowered platform participants, with structure, stability and a clear path to success as vehicle owners,” Chen said.
She added that passengers would also benefit from the programme through better service delivery.
“Riders also benefit through an expanded fleet, improved service availability and a more reliable ride-hailing experience,” she said.
Chen further disclosed that CIG Motors, LagRide’s vehicle partner, would provide technical support for the project.
She said the company brings over 10 years of experience and a nationwide workshop network to maintain the vehicles, ensuring safety, reliability and long-term sustainability of the programme.
