Grace Ashiru
Lagos-backed ride-hailing platform LagRide has secured a USD 100 million (approximately EUR 95 million) credit facility from United Bank for Africa (UBA) to fund the acquisition of 3,500 vehicles and support a four-year plan to transition drivers from rental arrangements to vehicle ownership.
Under the financing structure, drivers are able to avoid the high upfront costs that have traditionally limited access to vehicle ownership. The fleet, made up of compressed natural gas (CNG) vehicles supplied by CIG Motors, also aligns with the Lagos State Government’s broader objectives around fuel-cost reduction and cleaner energy adoption within the transport sector.
The development strengthens LagRide’s position as a state-backed alternative to private ride-hailing operators such as Uber and Bolt, particularly at a time when Lagos regulators are increasing compliance and operational requirements for e-hailing platforms.
With the Lagos State Government operating both as regulator and market participant, the UBA-backed facility represents a notable escalation in the city’s mobility landscape and signals an ambition to compete at scale with well-capitalised players such as Moove.
