Uber Is Gone. What Happened to Nigeria’s Business Climate?

For 12 years, Uber was part of Nigeria’s changing transport landscape. Its cars moved through Lagos and Abuja, carrying passengers to homes, offices, hotels and airports.

Now, the rides have stopped. The global ride-hailing company has left Nigeria, ending an operation that began in Lagos in 2014 and expanded to Abuja in 2016.

Its departure has left drivers, employees, passengers and business partners adjusting to the loss of a major platform, while reigniting debate over the country’s business environment.

Attention has focused partly on a dispute involving airport operations.

On July 30, the Federal Airports Authority of Nigeria (FAAN) directed managers of airports under its control to stop Uber and Bolt from operating commercially pending the completion of licence agreements.

Travellers subsequently complained about higher airport transport fares. On August 27, Aviation and Aerospace Development Minister Festus Keyamo directed FAAN to address the complaints, after which Bolt was cleared to resume airport operations.

But Uber has rejected claims that the FAAN directive forced it out of Nigeria.

The company said its decision was unrelated to the airport directive and explained that it was concentrating investment on markets where it saw stronger opportunities for drivers and riders.

“Uber remains deeply committed to Sub-Saharan Africa,” the company said.

It also promised to support affected employees and active drivers during the transition.

That explanation has not ended the debate.

The African Democratic Congress (ADC) has linked Uber’s departure to what it described as a difficult business environment under the Federal Government.

In a statement by its National Publicity Secretary, Bolaji Abdullahi, the party argued that the exit of Uber, alongside the closure or scaling down of other companies, raised concerns about the direction of economic policies.

The ADC cited a Manufacturers’ Association of Nigeria report which it said recorded 767 manufacturing companies, including 20 international brands, as having shut down or ceased operations since 2023.

The party listed Microsoft, Jumia, Pick n Pay, Shoprite, GlaxoSmithKline, Sanofi-Aventis, Bayer, Procter & Gamble, Unilever and PZ Cussons among companies it said had closed or reduced their Nigerian operations.

Entrepreneur Gbolahan Olusegun also blamed the operating environment.

“The main issue that pushed Uber out of Nigeria is the hostile business environment,” he said.

He pointed to the removal of the fuel subsidy and rising transportation costs, arguing that higher fares reduced the number of passengers available to drivers and increased pressure on the company.

Olusegun also described the FAAN directive as a major setback, although Uber maintains that the airport dispute was not responsible for its departure.

Beyond the corporate announcement are people whose livelihoods were tied to the platform.

Drivers have lost access to a source of income. Employees have been affected, while businesses that relied on Uber’s corporate services must now make other arrangements.

Uber said it would communicate with affected workers, assist drivers during the transition and discontinue its Uber for Business services in Nigeria.

Its departure has therefore become more than a story about a ride-hailing application disappearing from Nigerian phones.

It has revived questions about the cost of doing business, regulation, transportation expenses and the ability of companies to remain profitable in a difficult market.

For Uber, the Nigerian chapter has closed after 12 years.

For the people who depended on it, another question has taken its place:

What comes next?