Global ride-hailing company, Uber, has announced plans to discontinue its ride-hailing operations in Nigeria and Uganda, effective Wednesday, September 2, 2026, bringing an end to its 12-year presence in Nigeria.
The decision comes amid a challenging operating environment for businesses in the country, characterised by rising operating costs, regulatory pressures, security concerns and an economy that has placed increasing pressure on both businesses and consumers.
Uber, however, attributed its withdrawal specifically to a review of its evolving business priorities and investment strategy across Africa, while stressing that the decision was not connected to a recent directive by the Federal Airports Authority of Nigeria (FAAN) concerning e-hailing operations at airports.
In a statement seen by Pointblanknews.com, Uber’s Head of Communications for East and West Africa, Lorraine Onduru, said the decision was limited to Nigeria and Uganda and would not affect the company’s operations in other African markets.
“After a thorough review, we have taken the difficult decision to wind down operations in Nigeria and Uganda, effective September 2, 2026,” the company said.
“This decision is limited strictly to these two markets and does not impact our operations across the rest of the continent. Our immediate priority is supporting drivers, riders, and local team members throughout this transition.”
Onduru said Uber remained committed to Sub-Saharan Africa despite its withdrawal from the two countries.
“Uber remains deeply committed to Sub-Saharan Africa, where we continue to see robust growth and long-term opportunity,” she said.
Uber said its decision followed a review of its “evolving business priorities and investment focus across the continent.”
According to the company, it is redirecting its investments towards markets where it believes it can create the greatest value for drivers and riders at scale.
“Uber’s decision to discontinue operations in Nigeria and Uganda follows a review of our evolving business priorities and investment focus across the continent,” the company said.
The company added that its strategy would focus on markets where it could provide drivers with sustainable earning opportunities at scale while enabling riders to move around seamlessly.
“We remain committed to Sub-Saharan Africa, where we continue to see strong growth and opportunity,” Uber said.
Rising Cost of Operations
Although Uber did not specifically cite Nigeria’s economic conditions as the reason for its exit, the decision comes against the backdrop of a difficult business environment that has affected companies across several sectors.
Inflation, currency pressures, higher energy and transportation costs and declining consumer purchasing power have increased the cost of doing business, while businesses have also had to contend with regulatory and operational challenges.
For ride-hailing operators, these pressures have been compounded by rising fuel prices, vehicle maintenance costs, concerns over driver earnings, security challenges and evolving regulatory requirements.
These factors have increased the cost of operating vehicles while simultaneously putting pressure on what riders are willing or able to pay for trips.
Not Linked to FAAN Directive
Uber also moved to dispel speculation that its decision to leave Nigeria was connected to a recent directive by FAAN concerning e-hailing operations at Nigerian airports.
The company said its withdrawal was the result of a broader review of its investment priorities across Africa and not the immediate regulatory controversy surrounding airport operations.
“Uber’s decision to discontinue operations in Nigeria was made following a review of its evolving business priorities and investment focus across Africa.
“The decision is not related to the recent FAAN directive concerning e-hailing operations at Nigerian airports,” the company said.
The FAAN directive had generated uncertainty within Nigeria’s e-hailing industry, particularly over how ride-hailing operators would access airports and pick up passengers.
Uber’s clarification therefore separates its decision to withdraw from Nigeria from the regulatory issues surrounding e-hailing services at airports.
The End of a 12-Year Run
Uber launched its service in Lagos in 2014, becoming one of the pioneers of app-based ride-hailing in Nigeria.
Its arrival transformed urban transportation, giving Nigerians an alternative to conventional taxi services while creating earning opportunities for thousands of driver-partners.
Over the years, the company expanded its footprint beyond Lagos and became a familiar part of transportation in major Nigerian cities.
Its exit marks a significant development in Nigeria’s rapidly evolving ride-hailing industry and raises questions about the future operating environment for international technology companies providing consumer-facing services in the country.
For drivers and riders who have relied on the platform for more than a decade, however, the immediate issue is the transition following the company’s decision to shut down its Nigerian operations.
Uber said it would prioritise supporting drivers, riders and local team members throughout the process.
While the company is leaving Nigeria and Uganda, it maintained that its broader commitment to Sub-Saharan Africa remains intact, with investments expected to be concentrated in markets where it sees stronger opportunities for sustainable growth and scale.