Ride-hailing giant Uber has ended its 12-year operations in Nigeria, shutting down on September 2, 2026, after a global restructuring that included a 10 per cent payroll cut. The decision, attributed to a thorough review
of its business, comes amid rising fuel costs, competition from local platforms, and driver disputes over commissions.
Uber’s exit from Nigeria, a market it entered in 2014, marks the end of a decade-long presence in Africa’s most populous country. The company announced the shutdown via a statement to users, citing evolving business priorities and investment focus across the continent.
The move follows similar exits in Ivory Coast and Tanzania, reducing Uber’s African footprint. Despite the exit, Uber emphasized its continued commitment to Sub-Saharan Africa, stating it would see robust growth and long-term opportunity
in the region.
The Exit and Its Immediate Aftermath
Uber deactivated its booking platform in Nigeria on September 2, 2026, leaving drivers and riders scrambling. The company’s Help Centre remained operational until September 23 to address final account queries. We continue to communicate directly and responsibly with affected employees, drivers, and riders about what this means for them,
Uber said in a statement.
 "Photo: Pulse")
The exit came as Nigeria grapples with a 580 per cent increase in fuel prices since President Bola Tinubu assumed office. Drivers reported mounting financial pressures, with some citing exorbitant vehicle maintenance expenses
and repeated widespread labour friction.
Uber’s strict cash-payment policy further complicated its position in a cash-based economy, a challenge highlighted in The Guardian Nigeria News. Until it closed operations, it had not implemented cash payment, increasing transaction rigidities,
the outlet noted.
Competitive Pressures and Internal Struggles
Uber’s decline in Nigeria was exacerbated by fierce competition from local and regional players. Bolt, inDrive, and other platforms leveraged lower commission rates for drivers and cheaper fares for riders, according to Source 2. Bolt, inDrive and other newcomers played on prices (for riders) and lower commissions (for drivers) to Uber’s disadvantage,
the outlet reported. Uber’s 2017 onboarding of 7,000 drivers, as cited in Source 2, now appears insufficient to counter these challenges.
The company also faced internal hurdles. A consultant for Uber reportedly contacted the firm to reconcile account details hours after the announcement, as noted in Source 2. Meanwhile, drivers staged protests in 2017, 2023, and 2025 over “poor treatment” and high commission charges,
according to Source 6. Uber’s statement acknowledged these tensions, saying it apologised for the inconvenience
caused by its departure.
Denial of FAAN’s Role and Economic Impact
Uber explicitly denied that its exit was linked to the Federal Airports Authority of Nigeria’s (FAAN) recent clampdown on e-hailing services. The decision is not related to the recent FAAN directive concerning e-hailing operations at Nigerian airports,
the company stated in Source 3. FAAN had suspended Uber and other e-hailing platforms from operating into the nation’s airports last month, a decision some stakeholders have continued to fight. However, Uber clarified that its exit was limited strictly to Nigeria and Uganda
and does not impact our operations across the rest of the continent.
Prof. Sheriffdeen Tella, cited in Source 2, argued that Uber’s exit would have little impact on the country’s economy.
He attributed the company’s struggles to intense competition and a harsh operating environment.
However, the departure could still disrupt thousands of drivers who relied on Uber for income. Source 2 noted that the effect would be short-lived as the affected individuals would migrate to other platforms in the coming weeks.
What Comes Next for Nigeria’s Ride-Hailing Sector
With Uber’s exit, Bolt, inDrive and other newcomers are positioned to capture a larger share of Nigeria’s $450 million e-hailing market, as reported in Source 2. The Federal Airports Authority of Nigeria (FAAN) has also launched its own app, FAANTaxi, to manage airport transportation. We have been in touch with active drivers to extend a token of our appreciation as they transition over the next period,
Uber said in Source 3.
For riders, the transition may bring lower fares but also reduced service reliability. Source 2 noted that Uber had played on stronger safety measures to dominate the market,
a feature that competitors may struggle to match. Meanwhile, drivers face uncertainty as they navigate the shift. Uber’s Help Centre will remain open until September 23 to assist with final account queries, but the long-term implications for the sector remain unclear.
