The Federal Competition and Consumer Protection Commission (FCCPC) has begun a probe into Uber’s exit from Nigeria to ascertain if the ride-hailing firm left customers with unrendered services or obligations unfulfilled.
The FCCPC Chief Executive Officer, Tunji Bello, confirmed the development in a message to Bloomberg, saying the commission was investigating how Uber pulled out of the Nigerian market.
“We are looking at how they exited, especially on the delivery of services to customers,” Bello said.
The probe comes four days after Uber departed the ride-hailing business in Nigeria, marking the end of the company’s 12-year history in the country.
The FCCPC’s investigation comes at a time when Uber’s exit is being scrutinized by regulators over how it managed its duties to Nigerian consumers as it withdrew from the market. It is not that it is investigating Uber just because of its decision to leave Nigeria, the commission said. Its main concern, instead, is the nature of the company’s exit, particularly whether Uber left customers with unfulfilled services or obligations when it shut down. These might be unresolved consumer complaints or other open issues reqlated to services that were in progress at the time of the shutdown. The FCCPC has not yet announced specific complaints against Uber, or said the company has violated any consumer-protection law.
The investigation is therefore at an early stage and its eventual findings will determine whether further regulatory action is warranted. On September 2, Uber announced it would stop operating in Nigeria and Uganda effective immediately. The company said the decision came following a review of its business and changing priorities and investment focus across Africa. It did not offer any specific reason for its exit from Nigeria. Uber has been operating in Nigeria since it launched in Lagos in 2014, and has expanded to other cities since. The company said the decision was limited to Nigeria and Uganda and would not affect its other operations in Africa. Uber’s Help Center was scheduled to continue until September 23 to support customers with any last account-related questions following the closure.
The transition period may be relevant to the FCCPC’s investigation as the regulator seeks to establish whether customers with outstanding issues were adequately attended to.
The company said its decision was not related to the particular regulatory dispute in Nigeria, but had to do with its overall business priorities.
The company also dismissed rumours that its exit was based on a recent directive by the Federal Airports Authority of Nigeria (FAAN) on e-hailing operations at the airports.
An Uber spokesperson said the company’s decision was not related to the FAAN directive and followed a review of its changing business priorities and investment focus across Africa.
But the timing of the exit triggered speculation, with the statement coming shortly after a row over e-hailing operations at Nigerian airports.
However, there is no such compelling evidence to suggest that the FAAN directive forced Uber to pull out of Nigeria’s market. Uber itself has flatly denied any such connection. Uber’s departure comes amid a tough operating environment for Nigeria’s ride-hailing industry. Increasing fuel and vehicle maintenance costs, inflation, currency volatility and heavy competition have squeezed both ride-hailing companies and drivers. The Nigerian market has also become more competitive with platforms like Bolt and inDrive competing for passengers and drivers. In the years it operated in Nigeria, Uber had run-ins with some of its drivers over fares, commissions and working conditions. However, these challenges should not be taken as the reason for Uber leaving. The company did not cite any specific condition relating to the Nigeria market as the basis for its decision.
The FCCPC probe could shed more light on what went down in Uber’s last days in Nigeria and whether any consumer obligations were left hanging after the company stopped accepting ride requests.
The regulator could also shed more light on what it’s investigating as it collects information from Uber and potentially affected consumers.
For now, the commission has not announced any sanction against Uber and there’s no determination the company violated consumer-protection rules.
Already, Uber’s exit has changed the competitive landscape for Nigeria’s ride-hailing industry, with rival platforms eyeing an opportunity to lure former Uber riders and drivers.
The more immediate issue for the FCCPC, however, is consumer protection: whether Nigerians who had outstanding issues with the platform were properly taken care of as Uber ended its operations.
As the investigation progresses, further findings from the FCCPC could provide clearer answers about the circumstances surrounding Uber’s departure and whether any additional action is required.
Focus News will continue to monitor the investigation and update this story as the FCCPC releases further information.
