LagRide and United Bank for Africa on Tuesday handed over keys to the first batch of drivers under their $100 million Drive to Own programme, marking the formal start of vehicle disbursements in a financing model designed to convert daily earners into asset owners across Lagos State.
The handover took place at LagRide’s Alausa office, where at least 20 drivers referred to in the programme as “LagRide Captains” received vehicles after completing a 90-day performance and training cycle.
The disbursement is the first tangible output of a December 2025 partnership among UBA, LagRide, and the Lagos State Government, which committed $100 million to place 3,500 vehicles in the hands of qualified drivers over four years.
LagRide Executive Director Mildred Ekanem described the handover as the practical implementation of a carefully structured financing model built on measurable performance.
“Drive To Own is built on structure and measurable performance,” Ekanem said. “This disbursement demonstrates that when captains meet defined standards in safety, service quality, compliance, and operational discipline, the platform and its financial partners are prepared to back them with real ownership opportunities.”
Performance, Not Promises
The programme operates on a performance-backed financing structure. Drivers first work under LagRide’s rental framework, generating 90 days of performance data covering safety compliance, customer feedback, vehicle maintenance, and repayment discipline. UBA then uses this verifiable track record to assess creditworthiness and approve vehicle financing.
Under the financing terms, drivers contribute a 10% equity payment upfront, with the balance repayable over 48 months. The fleet comprises compressed natural gas vehicles supplied by CIG Motors, aligning with Lagos State’s broader objectives of reducing fuel costs and promoting cleaner energy adoption.
Babatunde Ajayi, UBA’s Head of Business Banking, framed the initiative as a rethinking of traditional credit 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,” Ajayi said. “We did not ask if they fit our old structures; we designed credit that fits their reality.”
Ajayi emphasised that UBA views the loans as investments in proven performance, not transactions. “The $100 million facility reflects confidence in a system that combines governance, performance tracking, and a transparent pathway to asset ownership. This is inclusive finance in action, supporting livelihoods while maintaining responsible risk management.”
For the beneficiaries, the vehicle handover marks a structural shift from dependence on daily rental income to building long-term assets. Aminu Ganna, one of the first drivers to receive keys, described the moment as transformational. “This is more than receiving a vehicle,” Ganna said. “It shows that consistent work and discipline can lead to ownership. It gives captains confidence that there is a future to build on this platform.”
The programme is structured to eventually allow drivers to scale beyond single-vehicle ownership. LagRide Chairman Diana Chen has stated that the long-term goal is for captains to become fleet partners and mobility investors, not just drivers, moving them up the economic value chain through structured performance and disciplined operations.
State-Backed Alternative Gains Traction
LagRide, which is backed by the Lagos State Government, positions itself as a structured, data-driven alternative to private ride-hailing operators like Uber and Bolt, particularly as regulators increase compliance and operational requirements for e-hailing platforms in the state.
The $100 million partnership strengthens that positioning. Over the past 10 months, LagRide rebuilt its entire onboarding and operational system, introducing a performance-led structure that generates consistent usage and repayment data. This data backbone has enabled UBA and other financial institutions to assess driver performance with the accuracy and confidence required for large-scale asset financing.
Oliver Alawuba, UBA Group Managing Director and CEO, described LagRide as a transformational, well-governed, and data-backed initiative that aligns with the bank’s commitment to financing real-sector projects that create jobs, build assets, and deliver long-term economic impact across Africa.
Tuesday’s disbursement is the first of a phased rollout targeting 3,500 vehicles over the four-year partnership period. LagRide has confirmed that continued participation in the programme will remain strictly performance-led, with eligibility tied to professionalism, safety compliance, customer feedback, and responsible vehicle use.
For Lagos, the initiative represents a test case for whether performance-backed, technology-enabled financing can create sustainable pathways to asset ownership in Africa’s informal mobility sector and whether such models can scale beyond Nigeria’s commercial capital.
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