UBA, Lagos state sign $100m deal to finance vehicles for LagRide drivers

United Bank for Africa (UBA) has signed a $100 million partnership with the Lagos State government and LagRide to finance vehicles for 3,500 ride-hailing drivers.

The partnership is aimed at helping drivers transition from renting vehicles to owning cars under the LagRide platform.

The memorandum of understanding (MoU) was signed between UBA and LagRide on Tuesday.

LagRide is a state government-owned e-hailing service in Lagos, Nigeria, aimed at providing safe, affordable, and efficient transportation.

Speaking at the MoU signing, Oliver Alawuba, UBA group managing director (GMD), described the partnership as transformational.

He said the initiative is designed to promote inclusivity and support economic growth.

“This partnership of UBA, LagRide, and the Lagos State government is one that is transformational to drive inclusivity for economic growth and make sure there’s progress for everyone,” he said.

According to the GMD, the bank’s interest in the initiative followed discussions on LagRide’s model and potential.

He stressed that the partnership is still at an early stage, describing it as a pilot with long-term plans.

Speaking to the drivers, Alawuba said the initiative is expected to bring significant change over the next few years.

“In the next four years, you will be transformed. Lagos will change because of us. And we will not only stop in Lagos, we will move beyond Lagos,” he said.

“I was speaking to someone yesterday; I said, have you taken a LagRide ride recently? She said yes. I said, tell me the difference between LagRide and others.

“And she told me that LagRides are clean, drivers are professional and courteous, they are cleaner, cheaper, more cost-effective, and more secure.

“I told her, you don’t need to own a ride. What you need to do is to be a partner to LagRide, and you move well with Lagos.

“I am indeed very grateful for the high standards that LagRide has maintained.”

The GMD reiterated that the bank will continue to work with LagRide, ensuring that all the objectives of the partnership are met.