Uber has shut down its operations in Nigeria after 12 years of service, a move that has sparked debate over the country’s business climate. The ride‑hailing giant announced the exit on 30 July, citing a need to focus on markets where it can add the most value for drivers and riders.
The decision followed a July 30 directive from the Federal Airports Authority of Nigeria (FAAN) that barred Uber and Bolt from operating commercially at airports under its management until licence agreements were finalised. The directive triggered complaints over higher airport transport fares, prompting the Minister of Aviation and Aerospace Development, Festus Keyamo, to intervene on 27 August. Only Bolt was later cleared to resume airport operations.
Uber denied that the FAAN order was the sole cause of its withdrawal. “Uber remains deeply committed to Sub‑Saharan Africa, where we continue to see robust growth and long‑term opportunity,” the company said. It pledged to support affected employees and drivers during the transition, offering a token of appreciation to active drivers and discontinuing Uber for Business services. The company also confirmed it would handle rider data in line with applicable data protection laws.
Uber launched in Lagos in 2014 and expanded to Abuja in March 2016, where it claimed the city was its 400th globally. The US‑based, publicly traded company is headquartered in San Francisco, California.
Reactions to the exit have been sharply critical. The African Democratic Congress (ADC) accused the All Progressives Congress‑led federal government of turning Nigeria into a “graveyard of businesses.” In a statement, National Publicity Secretary Bolaji Abdullahi said the growing list of closures exposed a gap between the government’s claims of economic progress and the reality faced by businesses and ordinary Nigerians.
- The ADC highlighted a 0.2‑percentage‑point improvement in GDP against a 63‑percent poverty rate, affecting an estimated 140 million people.
- It cited soaring energy and transportation costs, noting fuel prices had risen by up to 1,700 percent after the removal of subsidies and the devaluation of the naira.
- The party called for a targeted fuel subsidy to reduce production costs and support businesses.
Uber’s departure, the ADC argues, reflects an increasingly hostile operating environment for foreign firms in Nigeria, with rising costs and regulatory uncertainty. The company, however, maintains that its exit is part of a broader strategy to focus on markets where it can deliver the greatest value to drivers and riders across Sub‑Saharan Africa.
<small>Source: Daily Post Nigeria — read the original story there.</small>
