United Bank for Africa (UBA) Plc has entered into a $100 million vehicle ownership financing partnership with CIG Motors, LagRide, and the Lagos State Government to transform urban mobility and boost financial inclusion in Nigeria.
Under the “Drive to Own” pact, UBA will serve as the main financier, providing loan plans that let beneficiaries own a CIG/LagRide vehicle by making an equity payment of only 10 per cent of the total cost, with the balance spread over 48 months.
Unveiled at a ceremony in Alausa, Lagos, on Wednesday, the scheme is set to empower 3,500 drivers across the state with life-changing asset ownership opportunities, raising the bar for structured credit in Africa’s mobility industry.
UBA’s Group Managing Director, Oliver Alawuba, in his keynote speech at the event, emphasised the bank’s forward-looking dedication to driving inclusive economic growth, supporting MSME development, and opening real 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 chance to share a heartfelt story about the impact of opportunity: “My father began as a driver. His income put me through school… That will be the story for 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.”
Reflecting the GMD’s vision, UBA’s Head of SME Banking, Babatunde Ajayi, explained that this partnership is rooted in a fresh approach to 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.
This partnership brings together the strengths of three organizations: UBA delivers the financial support, CIG offers reliable business opportunities, and LagRide provides a tech-driven platform that ensures a sustainable and respectable livelihood for its driver-partners.
United Bank for Africa is a major player in the African financial sector, employing 25,000 people and serving more than 45 million customers worldwide. With operations in twenty African countries, as well as the UK, USA, France, and the UAE, UBA offers retail, commercial, and institutional banking services, driving financial inclusion and embracing innovative technology.
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