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April 1, 2025 – Nigeria’s Federal Airports Authority of Nigeria (FAAN) has officially dismissed speculation that Uber’s recent withdrawal from several Nigerian airports was tied to the agency’s newly introduced car hire system. In a statement released late Monday, FAAN emphasized that the ride-hailing giant’s decision was a commercial one, unrelated to any regulatory or operational constraints imposed by the airport authority.
The clarification comes after weeks of rumor and confusion among travelers and industry insiders, many of whom had linked Uber’s exit to FAAN’s push for a centralized “approved car hire” model at major terminals. FAAN has been rolling out a standardized system for ground transportation, requiring all operators to register with the agency and pay a per-trip fee. Some analysts speculated that Uber’s refusal to comply with these terms led to its departure.
However, FAAN’s spokesperson Henrietta Yakubu told reporters: “Uber’s decision to cease operations at our airports is purely a business decision on their part. The authority has not changed its policies, nor has it singled out any ride-hailing platform. The airport car hire system is open to all operators, and we continue to work with other ride-hailing companies.”
Behind the scenes, sources close to Uber’s operations in Nigeria reveal a more complex picture. The company has been grappling with rising operational costs, currency volatility, and increasing competition from rivals like Bolt and inDrive. Nigeria’s challenging economic environment—including high inflation and fuel price hikes—has squeezed margins for ride-hailing platforms across the board.
An industry expert who requested anonymity noted: “Uber’s exit from airports may be a sign of a broader strategy shift. They are focusing on higher-density urban routes where margins are better, and pulling back from high-cost, low-return segments like airport pickups, which involve waiting times, parking fees, and regulatory friction.”
While FAAN denies any link, the new car hire system has drawn criticism from some drivers and passengers. Drivers complain that the registration fees—reportedly up to ₦50,000 per driver—are prohibitive, while passengers say the system has reduced the number of available vehicles. FAAN insists the system improves safety and accountability.
“The system is designed to ensure that only vetted and insured operators serve airport passengers,” Yakubu added. “We are not against competition; we are for quality control.”
Uber’s airport retreat is the latest in a series of adjustments by global ride-hailing firms in Africa’s largest economy. In 2024, Uber raised fares by 20% in Lagos and Abuja, citing inflation. The company has also cut back on driver incentives and promotional discounts.
Bolt, Uber’s main rival, has not exited any airport locations but has similarly reduced its presence in some secondary cities. InDrive, a newer entrant, has gained ground by allowing passengers to negotiate fares directly with drivers.
For now, passengers arriving at Lagos, Abuja, and Port Harcourt airports can still use Bolt, inDrive, and locally registered taxis. FAAN advises travelers to pre-book via the official car hire app or use the designated taxi stands.
“Uber may return if the market conditions improve,” Yakubu hinted. “But that’s entirely up to them.”
FAAN’s statement puts to rest the immediate speculation, but the underlying issues facing ride-hailing in Nigeria remain unresolved. As Uber weighs its long-term strategy, the company’s airport exit serves as a cautionary tale about the delicate balance between platform economics, regulatory compliance, and customer expectations.
