Why Uber Is Pulling Back From Nigeria While Expanding in South Africa
Uber’s reported exit from Nigeria highlights how difficult ride-hailing has become for both platforms and drivers. Higher fuel prices, a weaker naira, driver disputes over commissions and pressure on fares have all made the business harder to sustain. Nigeria and Uganda are reported to be Uber’s latest African withdrawals, following earlier exits from Côte d’Ivoire and Tanzania. This would leave the company operating in Egypt, Ghana, Kenya and South Africa. South Africa has taken a different path. Uber recently announced a major investment plan there, supported by relatively stable currency conditions, better infrastructure, higher average fares and clearer e-hailing regulations. The contrast raises questions about Nigeria’s wider investment climate. Large user numbers alone may not keep global platforms in a market where operating costs and regulatory uncertainty continue to rise.
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