To redefine urban mobility and boost financial inclusion in Nigeria, United Bank for Africa (UBA) Plc has announced a $100 million financing partnership scheme with CIG Motors, Lagride and the Lagos State Government.
Through the partnership, tagged 'Drive to Own', UBA will be the lead financier, offering a loan subscription that will allow beneficiaries to own a CIG/Lagride vehicle by paying equity of only 10^ of the total vehicle cost, with the balance payable over a period of 48 months.
The scheme, 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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UBA Group Managing Director/CEO Oliver Alawuba, who delivered the keynote address at the event, highlighted the Bank’s visionary commitment to driving inclusive economic growth, promoting MSME development and creating solid opportunities for the younger generation.
He said, “This partnership with Lagride is transformative. It will drive inclusivity for economic growth and ensure progress for all. We are committed to helping you, and please trust me, this is just the beginning.”
He took the opportunity to share a deeply personal testament to the power of opportunity: “My father started out as a driver. I went to school thanks to that income… This will be the story of some of you, and even better,” he said.
Alawuba also emphasized UBA's focus on solving immediate, grassroots challenges, saying, “I am personally looking at our immediate problems in Lagos as we link the initiative to broader urban development. Lagos will be transformed because of us. And we will not stop in Lagos; we will move forward.”
Reiterating GMD's view, UBA's Head, SME Banking, Babatunde Ajayi, said the partnership was built on a fundamental rethinking of the traditional banking model.
“Not every business has a shop. Few businesses have wheels. Every commercial driver is running a business, yet they are excluded from formal finance. We didn't ask if they fit into our old structures; we designed credit that fit their reality, and that's how we work at UBA,” Ajayi said.
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Diana Chen, president of LagRide, who said the company has created 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 organizations, with UBA providing the financial backbone, CIG acting as a trusted provider of viable business opportunities, and Lagride providing 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 more than 45 million customers globally. Operating in twenty African countries and the United Kingdom, United States, France and the United Arab Emirates, UBA provides retail, commercial and institutional banking services, leading financial inclusion and applying cutting-edge technology.
