In a move set to redefine urban mobility and promote financial inclusion in Nigeria, United Bank for Africa (UBA) PLC has announced a $100 million financing partnership scheme with CIG Motors, LagRide and 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, was 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.
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Oliver Alawuba, UBA Group’s Managing Director/CEO, who delivered the keynote remarks at the event, highlighted the bank’s visionary commitment to inclusive economic growth, fostering MSME development, and creating tangible opportunities for the younger generation.
He said, “This partnership with LagRide is transformational. It will drive inclusivity for economic growth and ensure progress for everyone. We are committed to helping you, and please believe me, this is just the beginning.”
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 the partnership was 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.
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Diana Chen, Chairman, LagRide, who noted that the company had 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 partnership strategically aligns the strengths of the three organisations, with UBA providing the financial backbone, CIG acting as a trusted provider of viable business opportunities, and LagRide offering a technology-driven platform that guarantees a sustainable and dignified livelihood for its driver-partners.
United Bank for Africa is one of the largest employers in the financial sector on the African continent, with 25,000 employees group-wide and serving over 45 million customers globally. Operating in twenty African countries and in the United Kingdom, the United States of America, France and the United Arab Emirates, UBA provides retail, commercial and institutional banking services, leading financial inclusion and implementing cutting-edge technology.