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 initiative is intended to help drivers move 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, UBA Group Managing Director, Oliver Alawuba, 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,” Mr Alawuba said.
He explained that the bank’s interest in the initiative followed discussions on LagRide’s model and potential.
Alawuba noted 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.
Alawuba also highlighted the quality of the LagRide service, noting feedback from riders.
“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.”
Oliver Alawuba reiterated that UBA will continue to work with LagRide to ensure that all the objectives of the partnership are met.
