Uber Joins Growing List of Multinationals Exiting Nigeria Amid Persistent Business Challenges
Financial analysts and economists have shed light on why multinational companies continue to pull out of Nigeria, with global ride-hailing giant Uber becoming the latest to announce its departure.
Uber confirmed its exit from the Nigerian market on Wednesday, September 2, 2026. The company joins at least 15 other multinationals that have either fully exited, divested assets, or scaled back operations since 2023.
Among those that have reduced or discontinued their presence in recent years are Unilever Nigeria Plc, Procter & Gamble Nigeria, GlaxoSmithKline Consumer Nigeria Ltd, Shoprite Nigeria, Sanofi-Aventis Nigeria Ltd, Equinox Nigeria, Bolt Food, and Jumia Food Nigeria.
Between January and October 2024 alone, several major firms either exited or cut local production amid a tough operating climate. These included Microsoft Nigeria, TotalEnergies Nigeria (linked to its broader divestment strategy), PZ Cussons Nigeria Plc, Kimberly-Clark Nigeria, and Diageo Plc.
Other notable restructuring moves include Heineken/Champion Breweries selling a majority stake to EnjoyCorp, Bolt Food shutting down its food delivery service, and Pick n Pay selling its 51 per cent stake to leave the Nigerian retail sector. Netflix also halted commissioning of Nigerian original productions, fuelling questions about whether risk-adjusted returns still justify the capital needed to operate in the country.
Extending the timeline back to 2020 pushes the number of companies that have exited or significantly reduced their footprint closer to 75.
While Uber’s decision and some other exits were not solely attributed to Nigeria’s economic difficulties, analysts consistently point to deep-seated structural challenges and a difficult business environment that make profitable operations hard to sustain — even as some key macroeconomic indicators show improvement.
Nigeria’s real GDP grew by 4.43 per cent in the second quarter of 2026, inflation eased to 15.43 per cent in July, and the naira has remained relatively stable since the 2023 foreign exchange liberalisation, trading at N1,320.56 per dollar on Monday, September 7, 2026.
Yet experts insist that microeconomic pressures continue to weigh heavily on companies and households.
“Exit raises fresh concerns” – Oyedokun
Professor of Accounting at Lead City University and financial expert Godwin Oyedokun said the ongoing departure or downsizing of multinationals, including Uber, should worry the government and policymakers.
He cautioned against blaming every exit on President Bola Tinubu’s administration, noting that Uber’s move also reflects the company’s global restructuring and strategic shift.
“The continued exit or retrenchment of multinational companies from Nigeria, including Uber, should concern policymakers, although it would be wrong to attribute every corporate exit directly to the Tinubu administration. Uber’s decision also reflects its global restructuring and strategic shift,” Oyedokun told DAILY POST.
He highlighted a clear contradiction: while macroeconomic numbers are improving, the microeconomic environment remains hostile. Businesses still grapple with high energy and financing costs, exchange-rate risks, weak consumer purchasing power, and regulatory uncertainty.
“The real test of President Tinubu’s reforms is therefore not only whether the macroeconomic statistics look better, but whether businesses are investing, expanding and creating jobs. Nigeria must now move from macroeconomic stabilisation to genuine economic competitiveness. Good statistics are important, but they must ultimately translate into stronger businesses, more investment, jobs and improved living standards for Nigerians,” he added.
High costs erode profits – Idakolo
Gbolade Idakolo, CEO of SD & D Capital Management, explained that many multinationals were initially drawn to Nigeria by its large population and the promise of strong profits. Those expectations, however, have been undermined by falling consumer purchasing power and soaring operating expenses.
“The Nigerian economy under the Tinubu administration has been improving; at least some key indices have turned positive. However, the business environment remains hostile because most of the government’s reforms have not translated to real-time economic reprieve for businesses and Nigerians as a whole,” Idakolo said.
He pointed to persistent infrastructural gaps, security challenges, and especially the high cost of energy as major burdens. Companies that could no longer absorb these pressures have either downsized, sold assets, or left entirely.
“The projected profits have been eroded by the reduction in the purchasing power of Nigerians, which can be attributed partly to the higher exchange rate and inflation. Those that cannot withstand the economic realities in the country have exited the country and moved their operations elsewhere,” he concluded.