In a massive boost to the transportation sector and youth empowerment in Lagos State, the United Bank for Africa (UBA) Plc has entered into a landmark $100 million partnership with the Lagos State Government and LagRide. This multi-million dollar intervention is specifically designed to finance vehicles for 3,500 ride-hailing drivers, effectively moving them from the “work-and-pay” rental system to becoming full owners of their own cars.
The official signing of the Memorandum of Understanding (MoU) took place on Tuesday at a colorful ceremony in Ikeja, the seat of the Lagos State Government. The event marks a significant shift in how public transportation and driver welfare are handled in Nigeria’s commercial nerve center.
Speaking during the ceremony, the Group Managing Director and Chief Executive Officer of UBA, Mr. Oliver Alawuba, explained that the partnership is a strategic move to change the lives of thousands of Lagosians. He noted that the $100 million investment is not just about putting cars on the road, but about creating a sustainable path to wealth for the drivers. According to Mr. Alawuba, the transition from renting to owning will take place over a four-year period. He stressed that this initiative represents real economic empowerment, as it removes the heavy burden of daily rentals that often leaves drivers with very little profit at the end of the day.
The UBA boss also highlighted that the scheme includes structured training for all the beneficiaries. He pointed out that by providing professional training, the state can expect better road conduct and more orderliness on the perennially busy Lagos roads. For the commuting public, Mr. Alawuba promised that the partnership would deliver a much more secure and safer ride experience across the length and breadth of the state.
A key highlight of the new fleet is the introduction of Compressed Natural Gas (CNG) vehicles. Mr. Alawuba mentioned that these cars will run on clean energy, which is a major step toward a healthier environment in Lagos. He addressed the growing concerns about safety in the ride-hailing industry, assuring passengers that every driver under this $100 million programme is professionally vetted and trained.
Also present at the signing was the Chairman of LagRide, Diane Chen, who expressed delight at the new direction the agency is taking. She noted that the old system, where individuals simply joined a platform without a clear path to growth, is being replaced by a structured system that guarantees success for the car owner. Ms. Chen added that the partnership brings in more capital and more vehicles, which naturally leads to better service for the riders. She further disclosed that CIG Motors and GAC Motor, brands with over a decade of experience in Nigeria, would handle the maintenance of the vehicles through their nationwide workshops to ensure they remain safe and functional.
The human angle of the empowerment scheme was captured through the testimony of Dorothy Etim, a female driver who has been in the e-hailing business for seven years. An emotional Mrs. Etim told journalists that the initiative is a dream come true. She shared her journey of how she grew a network of female drivers from just 21 women to 500 across the country. She encouraged other women and the unemployed youth to take advantage of the opportunity, stating that there is no pride like having financial independence.
The UBA Group Managing Director concluded by stating that while the focus is currently on getting the model right in Lagos, several other states across Nigeria have already shown interest in replicating the same empowerment structure. He maintained that the repayment plan is flexible and designed to be sustainable for the long term
