Uber has announced the suspension of its ride-hailing operations in Nigeria after 12 years of service in Africa’s most populous country.
The company also announced its exit from Uganda, saying the decision followed a review of its evolving business priorities and investment focus across Africa.
Uber, which was founded in Lagos in 2014, subsequently expanded its operations to several Nigerian cities, becoming one of the leading players in the country’s growing app-based transportation sector.
In a statement on Wednesday, September 2, the company said the decision to leave Nigeria and Uganda was not taken lightly, but was based on its changing business priorities and investment focus.
The company, however, did not disclose a specific reason for its withdrawal from the Nigerian market.
Uber also dismissed speculation that its exit was linked to a recent directive by the Federal Airports Authority of Nigeria (FAAN) concerning e-hailing operations at Nigerian airports.
An Uber spokesperson said the decision followed a review of the company’s changing priorities and investment focus across Africa, stressing that it had nothing to do with the FAAN directive.
With the shutdown, Uber’s ride-hailing service is no longer available to users in Nigeria.
The company said rider support would remain available for 21 days after the shutdown to address questions and other transition-related issues, meaning its Help Centre will remain available until September 23.
Uber for Business services have also ceased operations in Nigeria.
The company said it would continue to process riders’ data in line with applicable data-protection laws and retain such data only where legally required.
Uber added that it had engaged affected employees, drivers and riders and would provide support during the transition. Active drivers are also being offered what the company described as a token of appreciation as they leave the platform.
The exit is expected to intensify competition among rival ride-hailing companies, including Bolt, inDrive and LagRide, as they compete for drivers and passengers previously using Uber.
Uber’s departure comes amid rising operating costs in Nigeria’s ride-hailing industry, driven by fuel prices, vehicle maintenance expenses, inflation and currency volatility.
Industry players have also raised concerns over intense competition and declining earnings for drivers.
The development is part of a broader restructuring by Uber, which has announced plans to cut about 3,300 corporate jobs globally, representing roughly 10 per cent of its workforce, as it seeks to simplify its organisational structure and redirect resources towards areas such as autonomous mobility and other growth opportunities.
Uber said its withdrawal was limited to Nigeria and Uganda and would not affect its broader operations across Africa.
The company maintained that it remains committed to sub-Saharan Africa and intends to concentrate investment in markets where it believes it can create earning opportunities for drivers on a larger scale.
For Nigerian users, the immediate impact is the end of access to Uber rides, while the development also raises broader questions about the sustainability and economics of ride-hailing operations in the country.
The exit is likely to reshape competition in Nigeria’s e-hailing market as rival platforms position themselves to fill the gap left by Uber.
