By Suad Ayinla
Edited by Bababunmi Agbebi
When a global company that has operated in Nigeria for more than a decade decides to leave, it raises questions that go beyond the company itself. Uber’s decision to end its operations in Nigeria after 12 years has renewed concerns about the country’s business environment and whether the cost of operating in Africa’s largest economy is becoming too high for international companies.
Uber became a major part of Nigeria’s urban transport system after launching in Lagos in 2014 and later expanding to other cities. Over the years, the platform provided an alternative to traditional transportation while creating an income source for thousands of drivers. Its departure comes at a time when businesses across the country are dealing with higher fuel prices, inflation, currency fluctuations and rising operational costs. For many companies, keeping services affordable for customers while remaining profitable has become increasingly difficult.
The ride-hailing industry illustrates the problem clearly. Drivers have to deal with fuel, vehicle maintenance, repairs and other expenses, while passengers are already struggling with higher transportation costs. Ride-hailing companies, on the other hand, have to balance competitive fares with the need to cover their own operating expenses. As these costs increase, companies may be forced to raise prices, reduce operations or reconsider their presence in the market.
Yet, Nigeria remains too important a market for global businesses to simply ignore. Its large population, growing technology sector and demand for digital services continue to present significant opportunities for investors. The country also has major opportunities in sectors such as energy, financial technology, telecommunications and consumer goods. The challenge is whether these opportunities can outweigh the cost and uncertainty of doing business.
Uber’s departure should therefore prompt a wider conversation about Nigeria’s investment climate. The issue may not be that Nigeria is simply too expensive, but that businesses are facing a combination of high costs and uncertainty. For global companies, being able to predict expenses, access reliable infrastructure and operate under clear and consistent policies is essential. If Nigeria wants to remain an attractive destination for international investment, reducing the burden of doing business may be just as important as attracting new investors. After all, what happens when the cost of staying becomes greater than the opportunity to grow?
