The Federal Competition and Consumer Protection Commission, FCCPC, has commenced an investigation into Uber’s withdrawal from the Nigerian market.
The commission is particularly examining whether the ride-hailing company left behind unresolved obligations or services owed to its customers.
FCCPC Chief Executive Officer, Tunji Bello, confirmed the development in a message to Bloomberg, saying officials were reviewing the circumstances surrounding the company’s departure.
Bello said the commission was “looking into the manner of their exit, particularly in respect of unfulfilled services to the customers.”
Uber announced on September 2 that it had decided to discontinue its operations in Nigeria and Uganda, bringing its Nigerian operations, which began in Lagos in 2014, to an end.
In a notice to drivers, the company described the decision as a “tough decision,” stating that users would no longer be able to receive trip requests through the Uber application from the effective date.
The company did not disclose a specific reason for its withdrawal.
Uber, however, said its Help Centre would remain available to drivers seeking clarification about the development until September 24.
The exit comes amid intense competition in Nigeria’s ride-hailing sector, with operators such as Bolt and inDrive competing for passengers and drivers, while rising operational costs and economic pressures continue to affect the industry.
The development also follows disagreements between Uber and the Federal Airports Authority of Nigeria, FAAN, over the regulation of e-hailing services at airports.
FAAN Managing Director, Olubunmi Kuku, said the authority was not responsible for Uber’s decision to leave Nigeria, explaining that its interventions were focused on passenger safety, accountability and curbing touting at airports.
Kuku said FAAN had been pushing e-hailing companies to accept liability provisions concerning the conduct and safety of drivers operating through their platforms.
According to her, “One of the issues we were struggling with the e-hailing companies over was largely around liability clauses.”
She added that the authority also wanted the companies to accept greater responsibility for drivers using their platforms.
“But we also wanted them to take responsibility for the drivers. However, we were told that those drivers are not Uber’s drivers; rather, they are independent drivers,” Kuku said.
She explained that the position had created difficulties whenever safety concerns arose, as Uber directed passengers to rely on safety features available on its platform rather than accepting direct responsibility for the drivers.
The FCCPC’s inquiry could therefore determine whether Uber adequately addressed its outstanding obligations to Nigerian consumers before ending its operations.
