Uber’s decision to end its operations in Nigeria after 12 years has reignited debate over the country’s business environment and the challenges confronting both local and international companies.
The ride-hailing giant, which launched in Lagos in 2014 and later expanded to Abuja, announced its withdrawal while maintaining that the decision was not connected to the Federal Airports Authority of Nigeria (FAAN)’s directive restricting Uber and Bolt from commercial operations at airports pending the finalisation of licence agreements.
The FAAN directive had triggered complaints over increased airport transportation costs and prompted intervention from the Minister of Aviation and Aerospace Development, Festus Keyamo. While Bolt was subsequently cleared to resume airport operations, Uber proceeded with its decision to leave the Nigerian market.
Uber said it remained committed to Sub-Saharan Africa and would continue operating in other African markets, while promising to support affected drivers, employees and business partners during the transition.
However, the company’s exit has drawn criticism from opposition politicians and some business commentators, who argue that rising operating costs, energy and transportation expenses, currency pressures and regulatory challenges are making Nigeria increasingly difficult for businesses to operate in.
The African Democratic Congress (ADC), through its National Publicity Secretary, Bolaji Abdullahi, described Uber’s departure and the scaling down or exit of other international companies as evidence of what it called an increasingly difficult business environment under President Bola Tinubu’s administration.
The party also cited figures it attributed to the Manufacturers’ Association of Nigeria, claiming that hundreds of manufacturing companies have shut down or ceased operations since 2023.
However, Uber itself has not attributed its Nigerian exit to FAAN or the broader Nigerian business environment, making the reasons for its strategic decision an important part of the ongoing debate.
For Nigerians, the development raises broader questions about how the country can balance regulation, business interests, consumer protection and the need to attract and retain investment while creating sustainable employment opportunities.
As Uber exits, the bigger question remains: what must Nigeria do to make businesses stay, expand and create more jobs?