- Deal will empower 3,500 drivers in “Drive to Own” vehicle financing scheme
The face of mobility drive hailing in Lagos State will see some remarkable uplifting in the coming weeks, months and years as 3,500 brand new cars enter the roads following a $100 million United Bank for Africa (UBA) Plc financing deal struck between the Bank and CIG Motors, Lagride and Lagos State Government.
The financing transaction, already tagged “Drive-to-Own” will see 3,500 drivers empowered under a scheme that would eventually lead to them owning their cars. Officials of the parties involved in the deal say it is a financial inclusion promotion scheme.
Projected as a partnership, the “Drive to Own” scheme will have UBA as key financier, offering loan subscriptions that will allow beneficiaries to own a CIG/Lagride vehicle by contributing an equity payment of just 10 percent of the total vehicle cost, with the remaining amount payable over a period of 48 months.
The parties unveiled the scheme at a ceremony in Alausa, Lagos on Wednesday to empower 3,500 drivers in the state, with transformative asset ownership opportunities, seen as a new benchmark for structured credit in Africa’s mobility sector.
Oliver Alawuba, group managing director, UBA Plc, in a keynote remark, highlighted the bank’s visionary commitment to inclusive economic growth, fostering MSME development, and creating tangible opportunities for the younger generation.
“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.”
Sharing a deeply personal testament about the power of opportunity, Alawuba said: “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.”
Babatunde Ajayi, UBA’s head of SME banking, echoing Alawuba’s vision, noted that the partnership has been 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.
Oliver Alabuwa (left), group managing director/CEO, United Bank for Africa (UBA) and, Chairman, Lagride, Diana Chen (right), chairman, chairman, Lagride, flanked by Lagride drivers, at the signing ceremony of $100 million expansion facility, strengthening smart mobility, driver asset ownership of over 3,500 cars, financed by UBA in partnership with Lagos State Government and Lagride, held in Lagos on Tuesday.
Diana Chen, chairman, Lagride, noted that the company has built a data-driven and credit-ready mobility platform for drivers, stressing 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,” she added.
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.
