Why is Uber leaving Nigeria? Top Companies that also Exited the Country and What it Means

Uber’s exit from Nigeria has revived an uncomfortable question about the country’s business environment: why are major companies increasingly reconsidering their operations in Africa’s most populous country?

After 12 years in Nigeria, Uber announced on Wednesday that it would wind down its operations in the country, effective September 2, 2026.

The ride-hailing company said the decision followed a “thorough review” of its business. It also announced a global restructuring that will see about 3,300 employees, representing 10 percent of its workforce, lose their jobs.

Uber’s announcement therefore does not establish that Nigeria’s economic conditions alone caused its departure. However, its exit comes against the backdrop of a wider pattern of multinational companies scaling down, restructuring or withdrawing parts of their businesses in Nigeria.

So, why is Uber leaving Nigeria, and what does its exit have in common with those of other companies?

Why is Uber leaving Nigeria?

Uber has not cited a single reason for its decision to leave Nigeria.

In its statement, the company said it had taken the decision after a review of its business. The exit is also part of a wider period of restructuring for the company globally.

But Uber’s Nigerian business has faced its own challenges.

Drivers have protested over fares, commission rates and working conditions at different times, including in 2017, 2023 and 2025.

The economics of ride-hailing have also become more difficult. Higher fuel and vehicle maintenance costs have put pressure on drivers, while higher fares can make rides less affordable for passengers.

Uber is also operating in an increasingly competitive market.

The company has exited several countries in Asia and Africa over the years, suggesting that its decision to leave Nigeria should also be viewed within its broader strategy of deciding which markets fit its current priorities.

Which companies have exited Nigeria?

Uber is joining a list of international companies that have either left Nigeria or significantly changed how they operate in the country.

GSK

GlaxoSmithKline announced in 2023 that it would discontinue its Nigerian operating-company structure and move towards a third-party distribution model.

The pharmaceutical company faced difficulties including foreign exchange pressures and competition from cheaper products. TheCable also reported that GSK was being crowded out by local companies and imports from countries such as India and China.

GSK still has a presence in Nigeria through partners, meaning its decision was not a complete disappearance from the Nigerian market.

Procter & Gamble

Procter & Gamble also stopped local manufacturing in Nigeria and moved towards importing its products.

The company cited the challenging macroeconomic conditions affecting markets such as Nigeria. The sharp fall in the naira and difficulties associated with foreign currency made local production increasingly difficult for a dollar-denominated multinational.

Kimberly-Clark

Kimberly-Clark, the maker of Huggies and Kotex, announced in 2024 that it would close its manufacturing facility and commercial office in Lagos and stop manufacturing, marketing and selling its products in Nigeria.

The company pointed to its refocused global priorities as well as economic developments in Nigeria.

Its departure was particularly notable because it came less than three years after the company invested about $100 million in a manufacturing facility in Lagos.

Other multinationals

The list has also included companies such as Sanofi and Bayer, while Diageo sold its majority stake in Guinness Nigeria to Tolaram.

PZ Cussons, another major consumer goods company, has also faced significant pressure from the Nigerian market, particularly from currency devaluation and inflation, and reviewed strategic options for its African operations.

These cases are not identical. Some companies exited completely, while others changed their operating models.

But they point to a common business calculation.

What do Uber and other companies have in common?

The biggest link is the rising cost and uncertainty of doing business in Nigeria.

Companies have had to contend with naira volatility, foreign exchange difficulties, inflation, expensive energy and transportation, weak consumer purchasing power and other operating challenges.

For manufacturers, the problem can be particularly severe.

A company importing raw materials needs foreign currency. When the naira loses value, those materials become more expensive. If the company increases its prices to cover the cost, consumers may buy less.

The result is a difficult cycle of higher costs, higher prices and weaker demand.

The Financial Times previously reported that the currency crisis had pushed companies including GSK, P&G, Unilever and Bayer to scale back or leave parts of their Nigerian operations.

Why Nigeria’s large population is not enough

Nigeria’s population has long been one of its biggest attractions to international companies.

But a large population does not automatically translate into a profitable market.

What matters to businesses is purchasing power.

The IMF said in June 2026 that Nigeria’s economy was estimated to have grown by 4 percent in 2025 and projected growth of 4.1 percent for 2026. However, it also noted that conditions remained difficult for many Nigerians, with poverty and food insecurity still major concerns and higher food and transport costs weighing on economic activity.

For companies selling directly to consumers, that matters.

If consumers have less disposable income, demand for non-essential goods and services can weaken.

What does Uber’s exit mean for Nigeria?

Uber’s exit will immediately affect the country’s ride-hailing market.

Drivers who depended on the platform will have to look for alternative platforms or sources of income, while passengers will lose one of the most recognisable ride-hailing brands in Nigeria.

But the larger implication is about investment confidence.

When a company leaves after years of operation, stops manufacturing or switches from direct operations to third-party distribution, it can reduce local employment, production, supply-chain activity and technology transfer.

There is also a reputational effect.

Repeated corporate exits can make international investors more cautious about committing large amounts of capital to Nigeria, particularly where investments require substantial upfront spending and depend heavily on foreign exchange.

A 2024 Reuters report noted that Nigeria’s foreign investment inflows had fallen sharply from previous years, while power shortages, regulatory delays and currency problems continued to weigh on investor confidence.

Does this mean Nigeria is becoming unattractive to investors?

Not necessarily.

Nigeria still has a huge market, a young population and significant long-term economic potential.

The more accurate interpretation is that companies are becoming more selective about how they participate in the Nigerian market.

Some are leaving.

Others are importing instead of manufacturing.

Some are using local distributors rather than maintaining expensive direct operations.

Others are trying to localise production to reduce their exposure to foreign exchange risks.

That means the issue is not simply whether companies want access to Nigeria.

It is whether they believe the potential returns justify the cost and risk of operating here.

The bigger lesson from Uber’s exit

Uber’s departure should therefore not be viewed in isolation.

The company itself is restructuring globally, so it would be misleading to present Nigeria as the sole reason for its decision.

However, its exit arrives at a time when other major companies have also been reassessing their Nigerian operations.

The common thread is a difficult operating environment in which currency instability, inflation, weak purchasing power and high operating costs can turn a potentially lucrative market into a difficult investment proposition.

For Nigeria, the challenge is consequently bigger than attracting multinational companies.

The country must create conditions that make it profitable and predictable for businesses to stay, manufacture, employ people and reinvest.

Uber’s 12-year run may have ended, but the more important question its departure leaves behind is whether Nigeria can make the next generation of global companies see the country not only as a market worth entering, but one worth staying in.