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Uber Exit Tests Nigeria’s E-Hailing Market

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Uber’s decision to end its operations in Nigeria after 12 years has put fresh focus on the sustainability of the country’s e-hailing industry, with rising operating costs, intense competition and pressure on drivers emerging as key concerns.

The global ride-hailing company announced that it would wind down its Nigerian operations effective September 2, 2026, following what it described as a thorough review of its business.

Uber, which launched in Lagos in 2014, did not give specific reasons for its withdrawal in the notice to drivers but apologised for the disruption the decision could cause.

The company said its Help Centre would remain available until September 23 to assist customers with final account-related enquiries and indicated that its immediate priority was supporting drivers, riders and local team members through the transition.

The development has raised concerns over the livelihoods of drivers who relied on the platform, although industry stakeholders expect many of them to move to competing services.

An economist and lecturer at Olabisi Onabanjo University, Prof. Sheriffdeen Tella, said the exit could affect employment but was unlikely to have a significant impact on the wider economy, as some affected drivers would migrate to other platforms.

Lagos State Chairman of the Amalgamated Union of App-based Transporters of Nigeria (AUATON), Jaiyesimi Azeez, however, described the development as a signal for a broader review of the operating environment for app-based transport businesses and workers.

Azeez said the immediate concern was the livelihood of drivers who had invested heavily in vehicles, fuel, maintenance and technology to provide services through e-hailing platforms.

He also warned that the departure of one of the major players could affect competition, fares and the range of choices available to passengers.

According to him, the Federal and Lagos State governments, regulators, operators, driver unions, riders and fleet owners should engage in a stakeholders’ dialogue to examine the implications of the exit and develop policies that would support a sustainable e-hailing ecosystem.

The pressure on drivers has also been linked to the rising cost of operating petrol-powered vehicles.

An Uber driver, Tobi Ladipo, said the economics of ride-hailing had become increasingly difficult for drivers using petrol vehicles, as fuel and maintenance costs rose while fares remained under competitive pressure.

Ladipo said the disparity between petrol and CNG costs had become an important factor in determining drivers’ profitability, adding that some drivers had moved to rival platforms in search of better returns.

He said converting a conventional vehicle such as a Toyota Corolla to CNG could cost between N800,000 and N1 million, making the transition difficult for drivers already dealing with high operating expenses.

The exit has also drawn responses from rival operators.

Bolt Nigeria said it had no plans to leave the Nigerian market, with its Public Relations Manager, Femi Adeyemo, saying the company continued to see significant opportunities in the country.

Lagride also said it was expanding its Nigerian operations rather than following Uber’s decision.

The company’s Public Relations Director, Ifeanyi Abraham, said Lagride had recently introduced 400 new vehicles and drivers into the market and expected demand to increase during the final quarter and festive season.

He also said the company was interested in working with state governments on mobility programmes, leveraging its partnership with CIG Motors for vehicle supply, technology, fleet management and driver operations.

Beyond the immediate effect on Uber drivers, Azeez said the development provided an opportunity to strengthen indigenous mobility technology companies, provided they addressed longstanding concerns over fares, commissions and operating costs.

He urged stakeholders to use the transition to examine how drivers could earn sustainable incomes while e-hailing platforms remained commercially viable.

Uber car in operation

Uber’s departure from Nigeria follows more than a decade of operations in the country and leaves competing platforms to serve a market where affordability, driver earnings and operating costs remain central to the future of app-based mobility.

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AIRPORTS

Babalakin Hails Tinubu Over MMA2 Dispute Settlement

Chairman of Bi-Courtney Aviation Services Limited (BASL), Dr. Wale Babalakin, (SAN) in handshake with the Aviation Minister – Mr. Festus Keyamo (SAN) in Abuja

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…Pledges quality jobs for Nigerians

The Chairman of Bi-Courtney Aviation Services Limited (BASL), Dr. Wale Babalakin, SAN, has commended President Bola Tinubu for facilitating the settlement of the more than 18-year dispute surrounding the Murtala Muhammed Airport Terminal Two (MMA2), describing the agreement as a victory for Nigeria.

Babalakin gave the commendation at the signing ceremony involving the Federal Government, the Federal Airports Authority of Nigeria (FAAN), Bi-Courtney Limited and Stabilini Visinoni Limited, following the resolution of the longstanding disagreement.

He credited the President’s intervention, facilitated through the Minister of Aviation and Aerospace Development, Festus Keyamo, SAN, with helping to resolve the impasse.

“This is not a win for us alone; it is a win for Nigerians,” Babalakin said, while expressing appreciation to the President, the minister and Nigerians who had followed the dispute over the years.

The development is expected to provide a basis for renewed cooperation among the parties and create opportunities for further infrastructure development and expanded operations at MMA2.

In a statement signed by the Head of Corporate Communications, Bi-Courtney Aviation Services Limited, Mrs. Ajoke Yinka-Olawuyi, the company said the settlement also addresses outstanding issues arising from the parties’ longstanding commercial relationship, including matters relating to the General Aviation Terminal (GAT), which remained under FAAN’s control and operation.

The agreement incorporates reciprocal concessions and revised obligations, providing a framework for the parties to move forward.

Babalakin said the resolution sends a positive signal to investors that longstanding disputes between government and private businesses can be resolved through dialogue and constructive engagement.

He noted that prolonged uncertainty could discourage long-term investment, adding that the settlement presents an opportunity to strengthen confidence in Nigeria’s investment environment.

The agreement is also expected to facilitate progress on key projects at MMA2, including the proposed Hotel and Conference Centre and the commencement of regional flight operations.

According to Babalakin, completing the hotel and conference facility would provide accommodation and meeting facilities for business travellers, corporate organisations and other airport users, while creating employment opportunities in construction, engineering, hospitality and facility management.

The planned regional flight operations, alongside the proposed expansion of the airport apron, are also expected to create opportunities for skilled employment and commercial growth.

Babalakin assured stakeholders that Bi-Courtney would fulfil its obligations under the agreement and work with the relevant parties to implement its provisions.

“We will not disappoint the President, the Ministry of Aviation and Aerospace Development, FAAN or Nigerians,” he said.

MMA2 Ikeja Lagos

He added that the settlement offered an opportunity to strengthen cooperation, advance infrastructure development and realise MMA2’s full potential.

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Airlines

United Nigeria Airlines Targets January Cargo Flights at Ekiti

United Nigeria Airlines Fleet

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United Nigeria Airlines (UNA) plans to commence commercial cargo operations at Ekiti Airport in January 2027, with daily passenger services also in the pipeline as the state government advances infrastructure upgrades.

The airline’s Chairman, Prof. Obiora Okonkwo, announced the plan on Monday during the commissioning of Reeve Energy Limited’s aviation fuel tank farm at the airport, saying the carrier was ready to support the movement of agricultural produce and other goods from Ekiti to markets across Nigeria and, eventually, overseas.

Okonkwo said the airline would be ready to commence cargo services once the state government was prepared to begin commercial exports from the airport. He pledged that United Nigeria Airlines would be the first carrier to lift commercial cargo from the facility when operations begin.

“By January next year, we will activate a cargo section of our flights so that we can work out a deal. As soon as you are ready to start exporting cargo from here, whether to other parts of Nigeria or beyond, we will be ready,” he said.

He added that the airline intended to introduce daily passenger flights to Ekiti, subject to the completion of ongoing airport infrastructure improvements.

The airline chairman described the commissioning of the fuel tank farm as an important development that would support flight operations and provide a foundation for future expansion at the airport.

Okonkwo said reliable aviation fuel supply was particularly important to the airline, which he described as Nigeria’s second-largest consumer of aviation fuel after Air Peace.

He explained that the Ekiti State Government selected United Nigeria Airlines for the partnership after assessing the operational capacity and fleet strength of domestic airlines, rather than following an application or lobbying process by the carrier.

According to him, the airline had sustained its commitment to the state by maintaining services even during periods of low passenger demand.

Ekiti State Governor, Biodun Oyebanji, said his administration was committed to completing the airport’s ongoing infrastructure projects by the end of 2026 to improve its operational capacity and attract further private-sector investment.

Oyebanji said the planned improvements included an upgrade of the airport’s Instrument Landing System (ILS) and the installation of aerodrome ground lighting to support operations beyond daylight hours.

He put the estimated cost of the ground lighting project at more than ₦10 billion, adding that the completed system would enable aircraft to land at the airport at any time, subject to applicable operational and regulatory requirements.

The governor also disclosed that the state government was pursuing an Independent Power Producer arrangement to ensure a reliable electricity supply for the airport and reduce dependence on external power sources.

He commended Reeve Energy Limited for investing in the state and reaffirmed his administration’s commitment to providing an enabling environment for businesses.

The planned cargo service could open additional routes for Ekiti’s agricultural produce and other goods, while the proposed daily passenger flights would improve the state’s air connectivity. Their implementation will depend on cargo-export readiness, infrastructure completion and the relevant operational requirements.

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Aviation

AAAU, NCAT Seek Digital Overhaul of Aviation Training

The Acting Vice-Chancellor of the African Aviation and Aerospace University (AAAU), Dr Mustapha Abdullahi, and the Rector of the Nigerian College of Aviation Technology (NCAT), Dr Ismaila Danjuma, at the second international conference organised by AAAU’s Department of Aviation Business in Abuja.

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The African Aviation and Aerospace University (AAAU) and the Nigerian College of Aviation Technology (NCAT) have called for a shift towards digital-focused aviation training, warning that traditional methods alone may not adequately prepare professionals for emerging industry challenges.

The institutions said stronger research, innovation and collaboration among training institutions, regulators and industry operators were necessary to equip Africa’s aviation workforce with the skills required to manage technological changes and evolving safety demands.

The call was made on Tuesday at the second international conference organised by AAAU’s Department of Aviation Business in Abuja, where stakeholders examined the future of aviation education amid digital transformation and changing industry requirements.

The Acting Vice-Chancellor of AAAU, Dr Mustapha Abdullahi, said the university was committed to advancing knowledge, influencing policy and promoting research in aviation, aerospace and environmental science.

Abdullahi described the conference as evidence of the institution’s commitment to research and intellectual development, despite being in its formative years. He also acknowledged NCAT’s support, saying collaboration between the institutions could strengthen professional training and aviation capacity development across Africa.

NCAT Rector, Dr Ismaila Danjuma, said aviation training institutions must adapt their programmes to technological innovation, changing regulatory frameworks, emerging safety and security requirements, and evolving passenger expectations.

He noted that Africa’s growing population, rising air traffic and regional integration initiatives, including the African Continental Free Trade Area (AfCFTA) and the Single African Air Transport Market (SAATM), were increasing the demands on the continent’s aviation sector.

According to Danjuma, training institutions must strengthen research, encourage innovation and promote continuous professional development while building closer relationships with universities, regulators and aviation operators.

He stressed that the competence of pilots, aircraft engineers, air traffic controllers, flight dispatchers, safety inspectors, managers and regulators remained critical to aviation safety, operational efficiency and the industry’s long-term sustainability.

Danjuma said NCAT had trained aviation professionals for Nigeria and other African countries for more than 60 years, with its recognition as an International Civil Aviation Organisation Regional Training Centre of Excellence with Platinum status reflecting its contribution to aviation capacity development.

He, however, said the college was focused on preparing professionals not only for existing responsibilities but also for emerging technological and operational challenges.

“We must move from training for current tasks to training for emerging challenges and opportunities,” he said.

The rector also called for research findings and academic discussions to translate into practical improvements in industry operations and policy, stressing that aviation education must evolve alongside the sector it serves.

The Minister of Aviation and Aerospace Development, Festus Keyamo, reaffirmed the Federal Government’s commitment to developing the industry, with digital transformation and sustainability identified as important priorities for Africa’s multimodal transport system.

Keyamo, represented by the ministry’s Deputy Director of Planning, Research and Statistics, Shittu Ayodeji, said preparing the sector for future demands required attention to technological advancement and sustainable development.

NCAT Logo

The conference highlighted the need for stronger institutional partnerships and updated training approaches to ensure Africa’s aviation workforce can respond effectively to emerging technologies, regulatory changes and increasing operational demands.

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