The offer runs for two tranches with different maturities and returns. Tranche A carries a tenor of 272 days with a discount rate of 18.53% and an implied yield of 21.50%. 

Tranche B runs for 364 days, with a discount rate of 19.53% and an implied yield of 24.25%.

The minimum subscription is N5 million, while additional investments come in multiples of N1,000. The offer closes on Monday, May 25, 2026, with the funding date set for Tuesday, May 26, 2026.

The company said proceeds will go into core operational needs and also listed inventory support and wider expansion plans. 

In its disclosure, it stated: “Proceeds from the issuance will be used for inventory financing, working capital optimisation, operational expansion, and broader mobility infrastructure development across Nigeria.”

United Capital Plc is the lead issuing house for the transaction. Cordros Capital Plc and Rand Merchant Bank act as joint issuing and placing agents. Wema Bank Plc, Access Bank Plc and Providus Bank serve as receiving banks.

Credit rating agencies assigned investment-grade ratings to the programme. DataPro Limited gave it an A1 short-term rating and an A long-term rating. Agusto & Co. assigned an A2 short-term rating and a Bbb long-term rating.

CIG Motors returned to the market after completing full redemption of its N10.2 billion Series 1 commercial paper. The company pointed to that repayment as part of its track record in meeting obligations and managing institutional funding.

Recent financial disclosures show revenue of N177.4 billion. Earnings before interest, tax, depreciation and amortisation stood at N35.3 billion. Profit after tax came in at N17.3 billion. These figures are part of the documentation supporting the new issuance.

Executives say the numbers reveal steady operational growth, pointing to expanding activity in vehicle assembly, mobility services and after-sales support.

Chairman Diana Chen described the transaction as a strong vote of confidence in both Nigeria’s economic outlook and the company’s long-term growth strategy.

Group Chief Financial Officer Ram Murugesan said the company’s financial performance shows a deliberate platform-building approach driven by disciplined leverage management and expanding operational capacity.

Gbadebo Adenrele also noted that the successful redemption of Series 1 strengthened the company’s position in the local capital market. He added that United Capital’s involvement in the Series 2 issuance followed CIG Motors’ execution record and financial discipline.

The fundraising is seen within a pattern in Nigeria’s commercial paper market. Corporate issuers have turned more to short-term debt as bank lending costs are high and liquidity stays tight.

In 2025, Nigerian companies raised more than N1 trillion through commercial paper programmes. Yields in that period generally ranged between 18% and 25%, reflecting inflation pressures and funding demand across sectors.

CIG Motors’ current pricing falls within that range. It also places the offer in line with other mid-tier industrial and manufacturing issuers competing for investor funds.

Ratings on the programme point to moderate risk with investment-grade status. That places it below top-tier corporates, but still within acceptable thresholds for institutional investors seeking yield.

The company’s operations include vehicle assembly, electric mobility solutions and transport services. Its structure reflects a drive toward integrated automotive services rather than import-heavy distribution.

In 2024, Lagos State Government, through IBILE Holdings Limited, entered a partnership with CIG Motors. The deal covered the acquisition of 5,000 vehicles for the Lagos Ride transport scheme, with an estimated value of $260 million.

The programme aims to modernise urban transport in Lagos and replace older vehicles across parts of the public mobility system. It also positioned CIG Motors more firmly inside state-backed transport infrastructure projects.

Nigeria’s automotive sector is operating under pressure from import tariffs on fully built vehicles. Foreign exchange volatility also affects spare parts costs and local assembly operations. Policy direction, however, continues to support local assembly and electric mobility.

CIG Motors’ model is within that policy direction. Its focus on assembly, mobility services and electric vehicle expansion aligns with government efforts to reduce import dependence and build local capacity in transport infrastructure.

The company said that termination of the ED’s appointment was following internal investigations that uncovered issues relating to financial misappropriation and abuse of authority.

In a statement made available to Techeconomy, the company said the decision followed a period of suspension and a comprehensive internal review.

According to CIG Motors, the findings of the investigation revealed conduct that fell significantly below the company’s governance, compliance, and ethical standards, making immediate termination necessary.

The company further disclosed that matters connected to financial impropriety arising from the investigation have been formally referred to the Economic and Financial Crimes Commission (EFCC).

CIG Motors stated that it is cooperating fully with the authorities as the matter progresses through the appropriate regulatory and legal channels.

CIG Motors emphasised that the action reflects a zero-tolerance stance on financial misconduct and abuse of authority, particularly at senior management level.

The company noted that safeguarding institutional integrity and maintaining robust internal controls remain central to its operations.

The statement also clarified that CIG Motors will not engage in further public commentary on the matter, stressing that it is now before the relevant authorities.

The company added that operational continuity across the business remains unaffected.

“The development aligns with a broader trend seen across Nigeria’s corporate and financial landscape in recent months, where several organisations have taken decisive action against senior executives following internal probes, regulatory breaches, or governance failures”, the company’s statement contained.

CIG Motors reiterated its commitment to the highest standards of corporate governance, accountability, and transparency, assuring stakeholders that appropriate measures are in place to protect the company’s long-term stability and reputation.

However, when contacted for comments over the allegations Mr. Jubril Arogundade referred us to his rejoinder published on his Instagram page: @JubrilofLagos.

In the rejoinder, he denied any wrong doing. He went ahead to accuse the company of lacking corporate governance which even led to tax compliances breaches. See more here.

The partnership strengthens Lagos State’s transportation ecosystem and accelerates the shift toward a structured, technology-enabled and financially bankable mobility sector.

Over the past 10 months, Lagride has rebuilt its entire onboarding and operational system for drivers, known as Lagride Captains.

The platform introduced a performance-led Drive To Earn structure supported by weekly and monthly rental models.

This system has generated consistent 90-day usage and repayment data across the fleet, allowing United Bank for Africa and other financial institutions to assess driver performance with accuracy, confidence and transparency.

Eligibility for the Drive To Own programme is based on clearly defined performance thresholds, repayment discipline, safety compliance and service consistency.

Through this approach, Lagride has emerged as the most structured, data-driven and credit-ready mobility platform in Nigeria, setting a new benchmark for bankable driver financing and asset ownership.

“Transportation is the backbone of Africa’s economic future, and platforms like Lagride are creating the blueprint for how African cities can build modern, technology-driven and people-centred mobility systems.”

EV Infrastructure Expansion

As part of the milestone, Lagride also unveiled an expanded electric vehicle charging facility in Alausa, Lagos, reinforcing its long-term commitment to clean, future-ready mobility.

The expanded infrastructure is designed to support the growing electric vehicle segment within Lagride’s fleet, reduce operational downtime and enable more efficient, sustainable transportation at scale.

By pairing driver financing with practical EV infrastructure, Lagride is positioning itself as a mobility platform built not just for today’s Lagos, but for the next generation of urban transport.

Chairman’s Vision: From Drivers to Investors

Speaking on the landmark partnership, Chief Diana Chen, chairman, Lagride, stated that the ultimate goal of the Drive To Own programme is not to keep drivers behind the wheel indefinitely, but to move them up the economic value chain.

She explained that Lagride is intentionally designed to help drivers evolve from operators into owners, and ultimately into investors and partners managing multiple vehicles and teams of people.

“Lagride was created to give Lagos a modern, disciplined and technology-driven mobility system while ensuring that drivers are not left behind. The goal is for drivers who we call Captains to become business owners, fleet partners and mobility investors, not just drivers. This 100 million dollar partnership with United Bank for Africa moves thousands of captains closer to owning productive assets, managing multiple cars and building stronger financial futures. It is a major step forward in our commitment to driver prosperity and the future of smart mobility in Lagos.”

She noted that the Drive To Own programme is a starting point, not an endpoint, laying the foundation for long-term enterprise building, governance and scalable wealth creation within the mobility sector.

UBA’s Perspective

Delivering remarks at the event, Oliver Alawuba, group managing director and CEO, United Bank for Africa, shared a personal reflection on his father, who had been a professional driver.

He spoke about transportation as a source of dignity, livelihood and social mobility, and why UBA considers the sector critical to inclusive economic growth.

He also recounted his reaction when Chief Diana Chen first shared the Lagride vision, describing it as clear, ambitious and strongly aligned with UBA’s commitment to financing real-sector projects that create jobs, build assets and deliver long-term economic impact.

According to him, Lagride represents the kind of transformational, well-governed and data-backed initiative that UBA exists to support across Africa.

Event Speakers and Signatories

The event featured contributions from key stakeholders across Lagride, UBA and CIG Motors Group, including:

• Chief Diana Chen, chairman, Lagride
• Ademola Adeyemi, Lagride Academy and Driver Management Team Lead
• Dorathy Akpan Etim, Lagride Captain on the Drive To Own Scheme with UBA
• Brigadier General Chukwuemeka Udaya, special adviser to the Chairman on Government Relations, who signed on behalf of CIG Motors
• Ifeanyi Abraham, PR director, Lagride, who hosted the event

Other Dignitaries in Attendance

Also present were senior executives and leaders from UBA, Lagride and CIG Motors Group, including:

Wei Bin, Chief Operations Officer, Lagride; Babatunde Ajayi, head of SME Banking; Alero Ladipo, group head, Marketing and Corporate Communications; Olufemi Osobajo, head of Segments and Channels Marketing; Olufemi Bamigbetan, head, REDTV; Ramon Nasir, head of Media Relations; Abiodun Coker, Media Relations, and Adetola Adeduwon, head of Events.

From CIG: Eniola Olutimehin, chief operating officer, CIG Motors; Dr Ram, chief financial officer, CIG
Mrs Manyo Pam, general manager, Operations, CIG; Mr Martin, managing director, Gree, and Mr Roamen, managing director, Lontor.

The partnership underscores a shared commitment by Lagride, United Bank for Africa and CIG Motors Group to build a disciplined, scalable and investor-ready mobility ecosystem where drivers can grow into business leaders, asset owners and long-term partners in Lagos’ transportation future.

Per TechCabal, multiple drivers familiar with the situation revealed that CIG Motors will discontinue the existing drive-to-own arrangement, replacing it with a fixed salary structure. 

Under the new system, drivers will earn ₦150,000 per month, way lower than their potential earnings under the previous model. 

While the drive-to-own scheme allowed drivers to gradually pay for and eventually own their vehicles, many were unable to meet daily repayments due to Nigeria’s economic downturn. Some abandoned their vehicles altogether, as inflation and unbearable financial stress kept increasing.

Beyond the changes in driver compensation, CIG Motors also plans to overhaul LagRide’s fleet by introducing electric vehicles (EVs). 

However, there is no official timeline for this transition, and there are still questions about Nigeria’s readiness for large-scale EV adoption. Challenges such as charging infrastructure, electricity supply, and affordability could hinder the change.

The Lagos State government’s role in facilitating this transition is also not yet solid. While the state has previously promoted cleaner energy initiatives, widespread EV adoption will require policy support, infrastructure development, and incentives to make the switch feasible for drivers and the entire transport sector.

This operational change also coincides with the exit of Tumi Adeyemi, the founder of Zenolynk Technologies, which co-developed LagRide with the Lagos State government. 

Adeyemi has reportedly moved on to Qoray, a mobility company focusing on electric vehicles. 

Zenolynk Technologies helped in LagRide’s initial rollout in 2021, introducing a financing model that allowed drivers to lease GAC vehicles after making a ₦700,000 down payment. 

The plan required daily instalments for four years, bringing the total cost to ₦10 million. However, the economic situation in Nigeria has made it difficult for drivers to sustain these payments, leading to high dropout rates.

How This Compares to Uber and Bolt

The transition to a salaried model makes LagRide’s structure fundamentally different from ride-hailing competitors like Uber and Bolt, which operate on a commission-based system where drivers retain autonomy over their earnings. 

While Uber and Bolt drivers complain about high commissions and fluctuating income, they still have the flexibility to increase their earnings based on ride volume.

With LagRide’s new model, drivers will have stable but lower earnings, possibly affecting recruitment and retention. Some drivers argue that ₦150,000 per month is unsustainable, especially given the high cost of living in Lagos. 

One driver familiar with the situation said, “This is not what we signed up for. The government promised we would own these cars. Now, they want to turn us into employees.”

The restructuring of LagRide is successful, it may inspire similar models in the transport sector. However, without adequate policies on EV adoption, driver welfare, and long-term sustainability, the move could also backfire, making LagRide less patronized compared to its competitors.

The partnership, formally signed at the GAC G-Style showroom, aims to simplify the rigorous process of owning a brand-new vehicle, with a flexi-repayment structure, and a 10 per cent discount rate on all vehicles purchased within 12 months.

As part of this collaboration, CIG Motors is also giving a five (5) year warranty on all its GAC vehicle models.

The partnership will also provide incentives to customers purchasing through the Stanbic IBTC Vehicle and Asset Finance (VAF) product.

This initiative comes at a time when many individuals and families are seeking affordable ways to own cars.

Jubril Arogundade, executive director, CIG Motors, expressed delight at the partnership stating that,

“Through this partnership, Nigerians are guaranteed to experience a premium and hassle-free process in owning brand new vehicles that suit their taste”.

CIG Motors’ expertise in the automobile sector, enhanced by Stanbic IBTC Bank’s Vehicle and Asset Finance (VAF) scheme, will allow equal opportunity for customers to own cars without stress or worry”, He added.

CIG Motors is a renowned automobile company known for cutting-edge designs and reliable automobile brand.

The scheme is open to individuals Nigerians (including the self-employed), and businesses seeking to expand their fleets.

During the event, Olu Delano, Executive Director, Personal & Private Banking, Stanbic IBTC Bank, emphasised that, “The collaboration enhances the purchasing power of our customers, enabling them to access a broad range of brand-new vehicles under CIG Motors. It also highlights our commitment to fostering economic growth in the communities we serve.

“Stanbic IBTC Bank and CIG Motors’ collaboration illustrates a broader trend of growth between financial institutions and automobile manufacturers,” he added.

As the automotive market expands, collaborations like Stanbic IBTC Bank and CIG Motors are crucial for promoting customer satisfaction and fostering loyalty.

The combination of quality vehicles and favourable financial solutions is set to transform the car-buying experience, making it efficient and enjoyable.