The Federal Competition and Consumer Protection Commission (FCCPC) has opened a probe into Uber’s abrupt exit from Nigeria, with the regulator focusing on whether the ride-hailing giant left customers with unresolved services and obligations.
FCCPC Chief Executive Officer, Tunji Bello, confirmed the investigation in a message to Bloomberg, saying the commission was examining the circumstances surrounding the company’s departure.
According to Bello, officials are particularly interested in determining whether Uber left behind services that customers had already paid for or were otherwise entitled to receive.
The probe comes just days after Uber pulled the plug on its Nigerian operations, ending a 12-year presence in the country.
Uber, which launched in Lagos in 2014 before expanding its services to other Nigerian cities, announced on September 2 that it was winding down its operations in Nigeria and Uganda.
The company did not give a specific explanation for the Nigerian exit, saying only that it had conducted a review of its business and taken the difficult decision to leave.
From September 2, riders could no longer request trips through the Uber app.
The company said its Help Centre would remain available for a limited period to assist customers and drivers with outstanding issues during the transition.
Exit shocks riders, drivers
Uber’s sudden departure reportedly caught some drivers and passengers by surprise, while raising questions about what would happen to outstanding customer issues, driver-related matters and other obligations.
The exit also leaves Nigeria’s increasingly competitive ride-hailing market largely in the hands of rivals such as Bolt and inDrive, which are now positioned to grab a larger share of the market.
The development comes amid mounting pressure on ride-hailing operators from rising operating costs, fuel prices, inflation and currency volatility. Reuters reported that Uber’s Nigerian exit came as the company undertook a wider global restructuring.
Uber announced plans around the same period to cut about 3,300 jobs globally, representing roughly 10 per cent of its workforce, as part of efforts to streamline its operations and reduce management layers.
FAAN controversy adds twist
The Uber exit also came shortly after a clash of positions between the company and the Federal Airports Authority of Nigeria (FAAN) over the operation of e-hailing services at airports.
FAAN had temporarily stopped commercial pick-ups by e-hailing drivers at its airports pending the finalisation of licence agreements, triggering speculation that the development could have contributed to Uber’s decision.
But FAAN Managing Director, Olubunmi Kuku, has rejected the suggestion.
Kuku said Uber’s withdrawal was a business decision and was not caused by FAAN’s airport regulations. She explained that the authority’s intervention was driven by passenger safety, accountability and complaints about some e-hailing and car-hire operators.
FAAN has also said it wanted e-hailing companies to provide clearer accountability for drivers operating at airports, particularly when safety incidents occur.
According to Kuku, one major sticking point was liability.
She explained that while FAAN wanted the platforms to take greater responsibility for drivers using their services, the companies maintained that the drivers were independent contractors rather than their direct employees.
FAAN said the position created difficulties whenever passenger safety complaints or other incidents involving drivers arose.
The airport authority has insisted that its measures were intended to protect passengers and bring greater order to commercial transportation within airport premises, rather than force any ride-hailing company out of Nigeria.
Now, FCCPC steps in
With Uber already gone, the FCCPC probe could determine whether the company adequately dealt with its obligations to Nigerian consumers before shutting down the service.
For millions of Nigerians who relied on the platform for daily transportation, the investigation could provide answers to questions surrounding outstanding services and other consumer concerns following the abrupt end of Uber’s 12-year Nigerian journey.
The FCCPC’s action also signals that leaving the Nigerian market does not necessarily wipe away a company’s consumer-protection obligations.
For now, however, Uber has not publicly disclosed any specific unresolved customer obligations that prompted the FCCPC’s intervention.
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