By Nigeria’s competition regulator said on Sunday it is investigating Uber Technologies Inc’s abrupt exit from the country, focusing on whether the ride-hailing company left customers with unfulfilled services when it shut down operations without warning.
The Federal Competition & Consumer Protection Commission (FCCPC) is examining Uber’s withdrawal from the West African nation after the platform ceased operating last week without prior notice to users. FCCPC Chief Executive Officer Tunji Bello said officials are “looking into the manner of their exit, particularly in respect of unfulfilled services to the customers,” in a text message to Bloomberg.
The Uber Nigeria exit brought an abrupt end to the company’s presence in Africa’s most populous nation, catching many riders and drivers off guard. Uber stopped operating in Nigeria and Uganda on Wednesday, Sept. 2, as part of a broader reassessment of its global business.
The company provided no prior public warning or gradual phase-out period, notifying customers and drivers via brief app notifications and emails on the day services were halted. Uber described the decision as “tough” following a review of its operations but did not give a specific explanation for its departure.
The sudden shutdown raised questions about outstanding customer transactions, account balances and other obligations that may have remained unresolved when the platform stopped operating.
The commission is examining whether the company breached Nigerian consumer protection statutes by abruptly terminating service agreements, leaving pre-funded user wallets inaccessible, and severing financial ties with drivers without adequate settlement arrangements.
Uber said its help centre would remain accessible for riders until Sept. 23 and for drivers until Sept. 24, to allow customers and drivers to resolve outstanding balances and account queries, according to Innovation Village, a Nigerian technology news outlet.
The FCCPC’s intervention shifts the matter from a corporate market-exit decision to a consumer protection issue, as the regulator seeks to determine whether Uber adequately addressed its obligations to users before ending its services.
The commission has recently increased its intervention in major consumer and competition matters across Nigeria.
In August, an FCCPC investigation pointed to possible manipulation of cement prices in the country, prompting a probe into key industry players and demands for information on pricing and production.
In May, the FCCPC renewed a memorandum of understanding with the National Agency for Food and Drug Administration and Control aimed at improving coordination between the two regulators, including faster handling of consumer complaints and joint investigations.
Uber’s exit ends more than a decade of operations in Nigeria. The company began operating in Lagos in 2014, helping establish app-based ride-hailing in one of the continent’s largest urban markets. It later expanded to other Nigerian cities, including Abuja.
Competition intensified in the years since Uber’s launch, with rival platforms including Estonia-based Bolt expanding in Nigeria and challenging Uber’s early market position. Uber’s departure also came amid regulatory tensions surrounding commercial ride-hailing operations at Nigerian airports.
The company’s withdrawal coincided with a difficult economic backdrop in Nigeria, which has experienced years of elevated inflation that have weakened household purchasing power. Nigeria is home to more than 200 million people.
Uber’s exit from Nigeria was part of a broader restructuring that also involved 3,300 job cuts, equivalent to roughly 10% of the company’s workforce. The company also withdrew from Uganda at the same time as part of the same global review.
Uber has said its decision followed a review of its business priorities and investment strategy in Africa.
For customers and drivers affected by the shutdown, the immediate concern is how outstanding issues will be resolved now that the platform’s operations have ended. The exit leaves drivers and consumers to rely on competing platforms for app-based transportation services in Nigeria.
The FCCPC, established under Nigeria’s Federal Competition and Consumer Protection Act of 2018, is responsible for enforcing competition law and consumer protection standards across industries in Africa’s largest economy. Bello did not say when the investigation into Uber’s exit would conclude.
