The exit of the United States (US) cab operating firm, last week, from Nigeria due to harsh business environment amid claims of a booming macro-economic growth by the authorities, indicates that the country’s business environment is weak to attract serious investors, a situation that continues to hamper job creation
By Udoka Ekeleme, Abuja
The global ride-hailing company Uber has announced the discontinuation of its operations in Nigeria and Uganda, effective Wednesday, September 2, 2026.
The company said the decision followed a “thorough review” of its business priorities and investment focus across Africa. Uber added that the move is limited to the two markets and will not affect its operations elsewhere on the African continent.
Uber said, “After a thorough review, we have taken the difficult decision to wind down operations in Nigeria and Uganda, effective September 2, 2026”.
The cab operating firm said its immediate priority was to support affected drivers, riders and local employees during the transition.
The company said it remains committed to sub-Saharan Africa, where it sees continued growth and long-term opportunities, but will focus its investments on markets where it can create earning opportunities for drivers at scale and provide reliable mobility services for riders.
In Nigeria, the exit ends Uber’s 12-year presence in the country. The company launched in Lagos in 2014 before expanding to Abuja and other locations.
Uber said it has contacted active drivers and will provide support as they transition from the platform. It also said affected employees would be contacted directly regarding arrangements applicable to them.
Riders will continue to have access to Uber’s support services for 21 days after the shutdown to resolve outstanding queries and other transition-related matters.
Uber denied that its decision to leave Nigeria was related to the recent Federal Airports Authority of Nigeria (FAAN) directive concerning commercial e-hailing operations at Nigerian airports.
Uber’s departure comes amid wider changes within the company, including plans to cut about 3,300 jobs globally as it restructures its operations and redirects investment toward growth areas such as autonomous vehicles.
The exit marks a major development in Nigeria’s ride-hailing sector, where Uber has been one of the leading app-based transport platforms since its entry into the country more than a decade ago. More importantly, Uber’s exit from Nigeria will throw hundreds of its employees into the labour market, a situation that will bring about economic hardship to the employees and their families and dependants.
In the meantime, the African Democratic Congress (ADC) has criticized the Federal Government for the poor business environment being witnessed in the country by investors. ADC said it was such dismal business environment that orchestrated the exit of the global ride-hailing brand from Nigeria. According to the party, the closure or scaling down of some major international companies in the country was an indication that the economic policies of President Bola Tinubu’s administration is allegedly turning the country into a “graveyard of businesses.”
The ADC, in a statement by its National Publicity Secretary, Bolaji Abdullahi, said the growing list of businesses shutting down, scaling down or leaving the country had exposed the widening gap between the government’s claims of economic progress and the reality confronting businesses and ordinary Nigerians.
The party said it was surprising to see the Federal Government celebrating a marginal 0.2 percentage points improvement in Gross Domestic Product (GDP), at a time when businesses are closing, jobs are disappearing and millions of Nigerians are sinking deeper into poverty.
It argued that while the government celebrates a marginal improvement of 0.2 percentage points, Nigeria’s poverty rate has snowballed to 63 percent, affecting an estimated 140 million Nigerians.
The ADC stated that “when the President and his party say things are getting better, we expect them to tell us what has improved in the lives of Nigerians. They should tell us how much food their GDP growth has put on the table. They should tell us which bill it has paid. If 0.2 per cent is a mark of success in their books, President Tinubu and APC should tell us what they consider as failure.”
The ADC referenced a report by the Manufacturers Association of Nigeria (MAN), which indicated that 767 manufacturing companies, including 20 iconic global brands, had shut down or ceased operations in Nigeria, since 2023 when President Tinubu assumed office.
The party noted that listed among the companies that had shut down or scaled down operations in the country were Microsoft, Jumia and Bolt Food, Pick n Pay, Shoprite, GlaxoSmithKline (GSK), Sanofi-Aventis, Bayer AG, Procter & Gamble and Unilever and PZ Cussons, among others.
“Therefore, when the President announces that Nigeria has turned the corner, we wonder which corner he is talking about. If indeed the economy is improving or the slightest hope exists in the minds of those who run these businesses that this APC government can improve the economy, why are they closing shops and moving elsewhere?”
