In a move poised to transform urban transportation and expand access to vehicle ownership, United Bank for Africa (UBA) Plc has unveiled a $100 million financing initiative in collaboration with CIG Motors, LagRide and the Lagos State Government.
By the partnership, tagged “Drive to Own”, UBA will be the key financier, offering loan subscriptions that will allow beneficiaries to own a CIG/LagRide vehicle by contributing an equity payment of just 10% of the total vehicle cost, with the remaining amount payable over a period of 48 months.
The scheme, which was unveiled during a ceremony in Alausa, Lagos on Wednesday, is aimed at empowering 3,500 drivers in the state, with transformative asset ownership opportunities, thus setting a new benchmark for structured credit in Africa’s mobility sector.
UBA’s Group Managing Director and Chief Executive Officer, Oliver Alawuba, in his keynote address at the event, underscored the bank’s strategic commitment to inclusive economic growth, MSME development and the creation of sustainable opportunities for young Nigerians.
He described the partnership with LagRide as transformational, noting that it would deepen inclusivity, accelerate economic progress and deliver broad-based benefits. Alawuba reaffirmed UBA’s commitment to supporting the initiative, adding that it marked only the beginning of a wider impact-driven journey.
He took the opportunity to share a deeply personal testament about the power of opportunity; “My father started as a driver. I went to school thanks to that income… That will be the story of some of you, and even better,” he said.
Alawuba also emphasised UBA’s focus on solving immediate, on-the-ground challenges, adding, “I am personally looking at the immediate problems we have right here in Lagos as we will be connecting the initiative to broader urban development. Lagos will change because of us. And we will not stop in Lagos; we will move beyond.”
Echoing the GMD’s vision, UBA’s Head, SME Banking, Babatunde Ajayi, noted that this partnership is built on a fundamental rethinking of traditional banking models.
“Not every business has a shop. Some businesses have wheels. Every commercial driver is running a business, yet they have remained outside formal finance. We did not ask if they fit our old structures; we designed credit that fits their reality, and that is the way we work at UBA,” Ajayi added
The Chairman, LagRide, Diana Chen, who noted that the company has built a data-driven and credit-ready mobility platform for drivers, stressed that transportation is the backbone of Africa’s economic future.
“LagRide now stands as the most structured, data-driven and credit-ready mobility platform in Nigeria,” Chen said. “This data enables UBA to evaluate driver performance with accuracy and confidence, creating a new standard for bankable driver financing,” he said
The collaboration brings together the core strengths of the partners, with UBA supplying the financial framework, CIG Motors delivering reliable business opportunities, and LagRide providing a technology-enabled platform that ensures sustainability and a dignified means of livelihood for its driver-partners.
