The Federal Competition and Consumer Protection Commission (FCCPC) has opened an investigation into Uber’s abrupt exit from Nigeria, days after the ride-hailing company ended its operations in the country.
The commission said it was examining how Uber handled its departure, particularly its obligations to customers who were still using the platform when the service was withdrawn.
FCCPC Executive Vice Chairman, Tunji Bello, confirmed the investigation in a statement reported by Bloomberg on Sunday.
“We are looking into the manner of their exit, particularly in respect of unfulfilled services to the customers,” Bello said.
Uber shut down its ride-hailing operations in Nigeria on September 2 after 12 years in the market, leaving thousands of drivers and customers to seek alternatives.
The company said the decision followed a global review that resulted in about 3,300 job cuts, representing roughly 10 per cent of its workforce.
Uber also denied that its Nigerian exit was connected to restrictions imposed by the Federal Airports Authority of Nigeria (FAAN) on ride-hailing pickups at airports.
The company said its withdrawal from Nigeria and Uganda were isolated decisions and would not affect its operations in other African markets, including Ghana, Kenya, Egypt and South Africa.
However, the FCCPC is now investigating whether Uber adequately fulfilled its obligations before withdrawing from the Nigerian market.
The probe could include customers’ unused in-app wallet balances, prepaid ride credits and bookings that were not completed before the shutdown.
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Under Sections 120, 123 and 124 of the Federal Competition and Consumer Protection Act 2018, the FCCPC has powers to take action against unfair commercial practices and protect consumers.
If Uber is found to have breached the law, the commission could impose administrative penalties of up to 10 per cent of the company’s turnover in Nigeria in the preceding year, as well as order refunds to affected consumers.
Uber would have the right to challenge any finding before the Competition and Consumer Protection Tribunal or the Federal High Court.
The investigation comes as the company winds down its remaining support operations in Nigeria, with September 23 set as the cutoff for customer support.
Meanwhile, some Uber drivers have begun receiving goodwill payments from the company following its exit.
A driver confirmed receiving about N40,000, credited to his account as a “Promotion, Goodwill Gesture.” Other drivers, however, reportedly received different amounts or nothing at all, with eligibility linked to recent activity on the platform.
Uber has said the payment is separate from drivers’ normal earnings and does not affect their status as independent contractors.
The company’s departure has opened up space for rival platforms, with Bolt and inDrive seeking to attract drivers and passengers left behind by Uber, while local operators such as LagRide are also positioned to benefit from the disruption in Nigeria’s ride-hailing market.
About the Author
Cecilia Attah is a tech analyst with a degree from Benue State University. She covers tech news and startups at TechRegard with a focus on how technology is transforming Africa and shaping the global landscape.
