Uber’s exit ignites fresh debate on Nigeria’s business environment
The sudden closure of business operations in Nigeria by one of the leading ride-hailing companies, Uber, has continued to generate debate about how unfriendly the country’s business environment has become, particularly to foreign businesses. Recall that Uber recently closed shop in Nigeria after 12 years of operation, a development that took many by surprise and […] Uber’s exit ignites fresh…
The unexpected closure of Uber's operations in Nigeria has sparked a fresh discussion around the country's business climate, especially its impact on foreign enterprises. Uber's 12-year presence in Nigeria suddenly ended, catching many off guard. Analysts attribute this exit to a perceived unfavorable and harsh business environment in the nation.
Some argue that this decision was also influenced by the Federal Airports Authority of Nigeria (FAAN)'s directive on July 30, which instructed airport managers to halt Uber and Bolt's commercial operations at airports until they finalized licensing agreements. This directive was followed by a series of complaints regarding escalated airport transport fees, leading Minister of Aviation and Aerospace Development, Festus Keyamo, to step in on August 27 and request FAAN to address these concerns.
However, Bolt was the only company cleared to resume operations at airports, whereas Uber had dismissed these claims, stating its decision to leave Nigeria was unrelated to FAAN's directive. The company affirmed its commitment to Sub-Saharan Africa, where it continues to observe strong growth and long-term prospects, focusing investments on markets where it can maximize value for drivers and enable riders to travel seamlessly.
Despite the impact on staff, Uber expressed its intention to support affected employees during the transition and communicated directly with them about their specific situations. Uber also emphasized that rider data would continue to adhere to data protection laws and privacy requirements, retaining only what is legally necessary while maintaining robust security controls and fulfilling legal obligations.
Uber, which originated in Lagos in 2014 and expanded to Abuja in March 2016, had claimed to be the 400th city globally for the company. However, since its exit, reactions have varied, with some blaming the All Progressives Congress (APC)-led Federal Government's policies for killing businesses in Nigeria, instead of attracting them to enhance citizens' living standards.
The African Democratic Congress (ADC) criticized the government, alleging that Nigeria was turning into a "graveyard for businesses" under President Bola Tinubu, citing a growing list of businesses shutting down or scaling back operations in the country, which they say exposes the widening gap between the government's proclaimed economic progress and the harsh realities faced by businesses and ordinary Nigerians.
The party argued that a marginal 0.2 percentage-point increase in GDP, while businesses are closing, jobs disappearing, and millions falling deeper into poverty, is an inadequate measure of success. ADC National Publicity Secretary, Bolaji Abdullahi, questioned how the government could celebrate such a minor improvement when 63 percent of Nigerians now live in poverty, and the Food and Agriculture Organization reported that 140 million Nigerians are affected.
ADC suggested that the President and his party should explain how their GDP growth translates into tangible benefits for people, such as increased food availability and paid bills. They also referenced a Manufacturers’ Association of Nigeria (MAN) report, which revealed that 767 manufacturing companies, including 20 major global brands, had ceased operations in Nigeria since 2023, following the removal of fuel subsidies and the devaluation of the naira.
Written by urgent.news from Daily Post Nigeria's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
