Category: Business Day

We have worked through several of the structural failure factors that bring products to an early end. This includes cultural and taste mismatch, cost of production exposure, and the pricing mistakes that either price the consumer out of the market or gift the competitive advantage to a rival. Each of these, in its own way, is a failure of external alignment: the failure to match the product’s realities to the realities of the market it is entering. Today’s failure factor is different in character. It is not primarily about the numbers, or the consumer’s purchasing power, or the cost base. It is about identity.

Specifically, it is about the failure to give a product a compelling, distinctive, and defensible identity of its own. It is the failure to answer the question that every consumer, consciously or not, asks about every product they encounter: what makes this different from everything else on this shelf, and why should that difference matter to me? When a product cannot answer that question, it does not just struggle. It disappears. This is because the consumer’s attention is finite, the shelf is crowded, and a product that is indistinguishable from its neighbour has no mechanism for creating preference.

That reason is what we call product uniqueness. And its absence is one of the most reliable predictors of product failure in the consumer goods market. Let me address something that I see in organisations across markets and categories. When a competitor’s product is performing well, the organisation that is losing market share to it faces a tempting option: copy it. Reformulate to match it. Adjust the packaging to resemble it. Price to undercut it. All this may work in the immediate, but the result is always the disappearance of the product.

The global tablet market after the iPad’s 2010 launch offers one of the clearest large-scale examples of this failure. Within two years, more than 100 competing tablets entered the market, from both established technology companies and new entrants. Most followed the same formula: a rectangular touchscreen device, broadly similar specifications, a lower price, and the implied promise of an iPad-like experience at a fraction of the cost. Almost all failed commercially. They copied the hardware, but not the identity.

Consider Heinz Tomato Ketchup. Its uniqueness isn’t the tomato or a recipe competitors cannot copy. It’s the total experience Heinz has made ownable over more than 150 years: its thickness, distinctive bottle, slow pour, and familiar sweetness. Together, these cues have shaped what many consumers expect ketchup to be. Heinz does not merely compete in the category; it helps define it.

In the Nigerian market, Indomie has achieved something comparable in the instant noodles category. Indomie did not invent instant noodles. The category existed before it entered Nigeria, and numerous competitors have attempted to challenge its dominance since. What Indomie owns is an association so deeply embedded in the Nigerian consumer’s mind and in the minds of the children who grew up eating it. The brand name has effectively become the category name. Nigerian consumers do not always ask for instant noodles. They ask for Indomie, even when they are buying a competitor’s product. That is the commercial value of genuine product uniqueness: it makes your brand the category’s reference point rather than one of its entries.

Many product failures happen when successful brands abandon their identity to imitate rivals, surrendering the uniqueness that made them successful. A sharper example is Listerine’s late-1990s attempt to launch a milder mouthwash after research showed that its intense burning sensation discouraged some potential users. The logic was simple: soften the product, remove the barrier, and attract more consumers. However, the research missed a critical truth: for loyal users, the burn was not just discomfort; it was proof that the product worked. The milder variant made Listerine seem less effective, was withdrawn, and the brand returned to its original formula. The lesson was clear: Listerine’s uniqueness was the intense, clinical, and visibly effective sensation and was inseparable from the very attribute some consumers found challenging.

In closing, this is the lesson I want every leader at every level of an organisation to take from this instalment. If you are a department head, a line manager, a commercial director, or a supply chain manager, every decision you make about a product is either building its uniqueness or diluting it. The quality control decision, the packaging specification, the raw material sourcing, the customer service protocol and the delivery reliability standard. All of these, in aggregate, are what the consumer experiences as the product’s identity. And when that identity is distinctive and consistently delivered, it becomes the most durable competitive advantage available.

Olori Atuwatse III, wife of Ogiame Atuwatse III, the 21st Olu of Warri Kingdom, demonstrated a strong penchant for business long before becoming Queen.

In an exclusive interview on the TAP Podcast, hosted by Apostle Tomi and Nicola Arayomi, Her Majesty, born Ivie Uhunoma Okunbo, reflected on her personal background, faith, entrepreneurial drive, humanitarian work and transition into royalty.

After graduating from the London School of Economics and completing her law degree, and called to the Nigerian Bar in 2010, she spotted a gap in the Lagos market and launched a breakfast delivery service from her apartment.

‘I started my first company, a fashion company called Colour Couture, in university,’ she recalls. ‘Then I graduated from law school and I was trying to find a job in Nigeria and nothing was quite forthcoming. So I thought, ‘Why don’t I just start my own business? Why don’t I start a breakfast delivery business?’ So many people go out all the time and they can’t be bothered to leave the house.’

To fund the venture, she made a bold move that signalled her entrepreneurial grit. She sold the Range Rover given to her by her father for passing the bar exam, bought a smaller car and used the remaining proceeds to bootstrap the business.

‘I did set up an infrastructure, but I was doing it out of my flat,’ she says. ‘Initially, I was cooking. I made up all the menus myself, full English breakfast, yam and egg and the like. I got bikes, motorcycles, with the boxes at the back. It was the hottest thing in Lagos at one point.’

That willingness to build from scratch would later become an important part of the mindset she brought to her public life. She views her royal position not simply as a title, but as an expanded platform for enterprise, service and systemic change.

‘Postpartum anxiety forced me to slow down and confront things I had swept under the rug. It was in that broken place that I truly surrendered and realised God was preparing me for a heavy assignment,’ she says.

The experience also shaped her understanding of leadership and calling as she later stepped into a traditional leadership role within the Warri Kingdom, navigating public expectations and the psychological weight of complex social and political transitions.

Reflecting on her Christian faith, she spoke candidly about dealing with postpartum anxiety in 2018, describing the experience as a major turning point that forced her to slow down and confront issues she had previously set aside. She also revealed a playful side, describing herself as a passionate dancer, rapper and worshipper. ‘I love to dance and I’m a worshipper…reckless worshipper…and I do rap.” she says.

‘Long before the throne, my identity was anchored in being a daughter of God first. The title ‘Olori’ is an office and a platform to serve,’ she says.

That philosophy is reflected in her philanthropic work, including the Love Gardens project, which transforms school grounds into sustainable farms while teaching young pupils basic agricultural and entrepreneurial skills.

‘In February 2022, we started building farms in schools in our communities,’ she explains. ‘We’re at 12 farms now and have grown about 800 tons of food. But the children also do market days. They’re learning entrepreneurial skills at seven and eight years old.’

‘The Love Gardens project isn’t just about feeding children; it’s about dignity, sustainability, and teaching them early that they can cultivate their own solutions. We are transforming school compounds into engines of productivity’, she said.

Her approach to development is similarly rooted in people rather than resources. She believes that Nigeria and the broader continent will not be transformed simply through political cycles or surface-level interventions, but by reshaping belief systems and developing human capital.

‘Nigeria will be built by the people that are built by the Lord, to build the people,’ she says. ‘Everything rises and falls on perception. If you asked me what to pour into Nigeria, I wouldn’t say more oil or more money. I would say better belief systems, trust, and integrity. Our greatest resource is the people who walk upon the land, more than what’s underneath it.’

Today, Her Majesty sits on the boards of Wells Property, Wells Carton and Wells Bake House Ventures, while her focus has increasingly shifted towards building social infrastructure across Africa.

Through initiatives including the Royal Iwere Foundation and Elevate Africa, she continues to pursue grassroots economic independence for women and children, particularly in the Niger Delta.

The Amalgamated Union of App-Based Transporters of Nigeria (AUATON) has strongly condemned Uber following the company’s abrupt withdrawal from the domestic ride-hailing market.

National Spokesperson Comrade Jossy Adaraniwon stated that the union criticised Uber for exiting without prior notice, a transition plan, or consultation with the thousands of drivers who built the platform’s local operations.

AUATON attributed Uber’s departure directly to what it described as an unsustainable business model.

According to the union, Uber institutionalised a system in Nigeria that rejected collective bargaining, ignored workers’ rights, and prioritised corporate profits over driver welfare.

This business strategy created a hyper-competitive environment that rival ride-hailing platforms eventually copied to secure market share.

The union issued a stern warning to remaining competitors Bolt and InDrive, asserting that they adopted Uber’s flawed operational template to push the pioneer platform out of the country.

AUATON noted that this ongoing strategy has resulted in longer passenger wait times, diminished driver revenues, and a shrinking pool of active drivers owing to poor working conditions.

‘This should serve as a clear lesson to Bolt and InDrive,’ Adaraniwon stated.

‘If you continue to operate without creating a genuine atmosphere for collective bargaining with AUATON to protect and prioritise driver welfare, you will suffer the same fate. The moment an indigenous app with a collective agreement breaks into the market, platforms that refuse dialogue will exit.’

AUATON reaffirmed its core operational demands for the Nigerian ride-hailing sector:

Official recognition of AUATON as the sole collective bargaining representative for app-based transporters nationwide.

Fair compensation and integrated welfare packages secured through binding collective agreements.

Increased platform transparency, enhanced safety protocols, and decent working conditions aligned with International Labour Organization (ILO) standards.

Addressing its members nationwide, the union urged drivers to stay united and align themselves with platforms willing to engage in formal labour agreements.

AUATON emphasised that Uber’s exit proves that business models reliant on worker exploitation cannot survive long-term in Nigeria. Calling on foreign platforms to operate with accountability, the union signalled that the door for dialogue with Bolt and InDrive remains open, though time is rapidly running out.

The NNPC Exploration and Production Limited (NEPL)/Seplat Energy Joint Venture has listed 500 teachers across Edo State for training.

The essence, according to an official statement, is to strengthen quality education through sustained investment in teacher development.

This was contained in a press statement from Seplat EnergyJV and made available to BusinessDay in Owerri, Imo State Capital by Chioma Afe, Director of External Affairs and Social Performance, Seplat Energy PLC, who was represented by Esther Icha, the General Manager, Corporate Social Investment and Social Performance, Seplat Energy PLC, during 2026 Seplat Teachers Empowerment Programme (STEP), onboarding workshop in Benin.

She stated that the 2026 programme would be a significant expansion of STEP, which has, over the past six years, trained more than 2,000 teachers and education evaluators across Edo, Delta and Imo States and that in this cohort, 500 teachers from Edo State would benefit from the knowledge-empowerment initiative.

Afe explained that the Seplat JV is investing heavily in the programme because education has remained a critical part of Seplat Energy’s contribution to nation building, and that teachers play a vital role in shaping the future of the country.

‘Seplat is very committed to education. It’s critical to nation building, and everybody that is here has contributed in one way or the other to the life of one student or one child,’ she said.

Afe explained that the continued changes in education, including evolving curricula, technology and teaching approaches, make it necessary for teachers to continuously update their skills and adapt to emerging trends.

‘Education is changing daily,’ she said. ‘This programme is to equip you with what you need to meet the changing trends,’ she added.

She pointed out that the STEP is designed to strengthen teachers both in the classroom, and their personal and professional development, by providing participants with access to facilitators, learning resources and platforms that expose them to developments in education and contemporary approaches to teaching.

Afe acknowledged the support of the JV partner, NEPL, for consistently backing the initiative, and the Edo State Government for facilitating the participation of schools and teachers in the programme.

She encouraged the participants to make the most of the training and translate their learning into improved outcomes for their students.

Washington Osa Osifo, the Edo State Commissioner for Education, commended Seplat Energy for its sustained contribution to education in the state and its long-standing partnership with the government.

He described Seplat Energy as a ‘partner in progress’, saying, the company’s sustained engagement demonstrated the value of long-term collaboration between the government and the private sector in addressing challenges in the education sector.

Osifo noted that investments in school infrastructure had helped to make schools more attractive to students, stressing that physical infrastructure alone could not deliver meaningful educational outcomes.

‘Whereas the form is good, but content is always better,’ he said, emphasising the need to complement infrastructure with effective administration, quality teaching and strong educational content.

To the teachers participating in the STEP programme, Osifo urged them to ensure that the training translates into tangible improvements in their classrooms.

‘After this investment in training, you are supposed to go back and manifest it. And we will measure it with the results that will proceed from you,’ he said.

He encouraged teachers to remain committed to the state curriculum, avoid shortcuts and focus on helping students develop confidence in themselves and their abilities.

Osifo also emphasised the importance of character, conduct and moral responsibility in teaching, urging educators to recognise the responsibility they have to shape the next generation.

‘See yourself and do to them (your students) what you would have loved a teacher to do to you,’ he said.

The National Youth Service Corps (NYSC) has commended security agencies and other stakeholders involved in the successful rescue of 16 Corps Members abducted in Kogi State while travelling from the Bayelsa State orientation camp to Abuja.

The Corps Members were abducted on August 26, 2026, while on relocation after successfully completing their Orientation Course.

In a statement signed by Caroline Embu, Director, Information and Public Relations, the NYSC management expressed appreciation to the Nigerian Armed Forces, Nigeria Police Force, Department of State Services (DSS), Kogi State Vigilante groups and others who participated in the search and rescue operation.

The Scheme commended the professionalism, courage, commitment and coordination demonstrated by the security personnel during the operation, which culminated in the safe recovery of all 16 Corps Members.

NYSC also acknowledged the support of President Bola Ahmed Tinubu, as Commander-in-Chief of the Armed Forces, saying his concern for the safety and welfare of Corps Members nationwide helped drive the urgency attached to the rescue operation.

It also commended the Office of the National Security Adviser and the Minister of Youth Development for their roles in the recovery efforts.

The Scheme expressed appreciation to the families of the affected Corps Members for their patience and cooperation throughout the incident, as well as the media for handling the situation responsibly without compromising the safety of the abducted Corps Members.

According to the NYSC, all the rescued Corps Members are safe, in high spirits and eager to resume at their respective places of primary assignment.

‘Management is relieved that all affected Corps Members have been safely recovered and are in high spirits, eager to resume at their places of primary assignment,’ the statement said.

The Scheme noted that the Corps Members’ resilience in the face of the ordeal was commendable, adding that it would continue to provide support to help them recover from the traumatic experience.

NYSC further assured that it would work with the government and security agencies to strengthen protective measures for Corps Members across the country.

It said lessons had been learnt from the incident and that relevant protocols would be reviewed to reduce the risk of similar occurrences in the future.

The Scheme reiterated its commitment to the safety and welfare of Corps Members, concluding with its familiar call: ‘Nigeria is ours; Nigeria we serve.’

Askya Investment Partners is offering African artificial-intelligence startups up to $200,000 each through a new accelerator programme that takes no equity, as investors step up efforts to back companies developing AI products for the continent.

The six-week Askya AI Growth Platform will select 10 startups from pre-seed to Series A, with applications open until September 30.

The first cohort will be announced at Moonshot by TechCabal in Lagos on October 28-29, when the programme begins.

The initiative, launched in Lagos, is being run in partnership with Magna Collective and will provide selected companies with access to capital, cloud and computing resources, customers and talent, as well as coaching on product development, technology, governance and distribution.

Tosin Eniolorunda, founder and group chief executive officer of Moniepoint, will serve as honorary chair of the inaugural cohort.

‘Africa can either become a producer of AI technology, capturing the tremendous value it creates, or remain a mere importer,’ Babacar Seck, founder and managing partner of Askya Investment Partners, said.

The programme comes as AI adoption accelerates globally and investors assess how African startups can use the technology to address gaps in sectors including financial services, healthcare, commerce and agriculture.

The African Development Bank estimates that inclusive deployment of AI could add as much as $1 trillion to Africa’s gross domestic product by 2035, according to the investment firm.

Askya said the continent has an opportunity to use AI to bypass some of the legacy infrastructure constraints that have slowed the development of other industries.

The firm said African startups already have evidence of their ability to build companies at scale, but often struggle to gain access to customers, infrastructure and experienced operators as they expand.

‘AI is the greatest opportunity yet to prove it,’ Eniolorunda said. ‘What this new generation of founders needs is execution support and access to real customers.’

Unlike conventional accelerator programmes, Askya said participation in the platform is free and does not require founders to surrender equity. Startups selected for the cohort will, however, be eligible for investments of up to $200,000 from Askya’s funds.

The programme will combine virtual sessions with in-person activities, including masterclasses and one-on-one coaching from African founders and business operators.

Deep Learning Indaba, an African machine-learning community, and Big Cabal Media, publisher of TechCabal, are among the founding partners. Moonshot by TechCabal will host the cohort announcement and programme launch.

Magna Collective will design and deliver the programme, while Askya said additional partners in cloud and computing infrastructure, policy and enterprise markets will be announced before the October cohort reveal.

‘We open on Africa’s biggest stage in Lagos, then we get to work,’ said Femi Awoniyi, co-founder and chief executive officer of Magna Collective. ‘Every week that follows is built around one thing: getting founders closer to a signed contract.’

Askya Investment Partners, founded by Seck, invests in African technology and AI companies. Its portfolio includes Moniepoint and Jumia.

Alan, a global prevention-focused health insurance company, has entered Africa through the acquisition of Senegalese digital health company Tanel, giving the French firm a foothold in a West African insurance market it estimates at nearly pound 600 million.

The deal marks Alan’s first African expansion and gives it an established healthcare platform spanning Senegal and Côte d’Ivoire, two markets where it sees insurance growing by about 10 percent annually.

Rather than building a market presence from scratch, Alan is using Tanel’s existing customer base, healthcare network and local regulatory knowledge to accelerate its expansion. Tanel serves about 70,000 members across more than 400 companies and connects users to more than 1,200 pharmacies and healthcare providers.

The acquisition comes as African healthcare companies increasingly look beyond basic digitisation toward platforms that combine insurance, healthcare access and preventive services. Alan plans to introduce its technology and preventive healthcare model through Tanel, including telehealth and other digital health services.

‘We are building in Africa from a strong base,’ Jean-Charles Samuelian-Werve, co-founder and chief executive officer of Alan, said, adding that Tanel had already built the local relationships needed to navigate healthcare systems, customers and regulators.

The company’s longer-term ambition is significantly larger. Alan and Tanel plan to reach more than one million members across Africa by 2030, initially strengthening their operations in Senegal and Côte d’Ivoire before moving into English-speaking markets in West and East Africa.

For Alan, the strategy represents a shift from its established European markets into a region where healthcare remains highly fragmented and access to insurance and digital services is uneven. The company currently has more than 1.2 million members across France, Spain, Belgium and Canada.

Tanel’s founders, Mouhamed Ndoye and Makhtar Diop, will continue to run its operations and lead Alan’s African development, with the full Tanel team retained.

The transaction also provides an exit for Tanel’s founders and early investors, including Ventures Platform and AAIC Investment. Dotun Olowoporoku, managing partner at Ventures Platform, described the transaction as an important milestone for Francophone Africa, where technology exits remain relatively uncommon.

For the African healthtech market, the significance of the deal extends beyond the acquisition itself. Tanel’s sale provides evidence that locally built healthcare technology companies can become strategic entry points for international health businesses seeking growth on the continent.

Alan’s challenge now will be converting Tanel’s local infrastructure into a broader regional platform while adapting its prevention-led insurance model to markets with different regulatory systems, healthcare networks and levels of insurance penetration.

The company is betting that combining technology with established local healthcare relationships can help it scale faster than a standalone market entry and turn a pound 600 million regional insurance opportunity into the starting point for a much larger African healthcare business.

Nigeria’s manufacturing sector expanded at a faster pace, with growth accelerating to 3.24 percent in Q2 2026 from 1.69 percent in the corresponding quarter of 2025, driven by renewed optimism.

Data from the National Bureau of Statistics shows that the sector’s real contribution to GDP in the second quarter was 7.72 percent, lower than the 7.81 percent recorded in the same period of 2025 and 9.57 percent recorded in the first quarter of 2026.

The pickup reflects better access to foreign exchange, increased confidence in government reforms, and expectations of lower borrowing costs have prompted firms to raise output and restock inventories.

The Manufacturers Association of Nigeria’s CEO Confidence Index rose to 52.1 from 48.7, its highest level in more than two years in the second quarter of 2026, signaling renewed optimism in the sector.

‘Specifically, within the second quarter of 2026, manufacturers reported a return of confidence in doing business in Nigeria,’ the MAN report said.

‘The recent tax laws, executive orders and other business-related policies, Nigeria Industrial Policy and ‘Nigeria First’ Policy cast a more positive outlook on manufacturing executives,’ the report added.

The Nigeria Industrial Policy was launched in the first quarter of 2026 and has recorded significant progress within its first 90 days of implementation, with achievements spanning financing, skills development, industrial infrastructure, exports and support for local manufacturing.

The Ministry of Trade and Investment says it has mobilised more than $380 million in strategic financing in the first 90 days of the policy and advanced plans for a proposed N350 billion MSME Development Fund.

The federal government had also introduced the Nigeria First policy to prioritize domestic industries and grow the economy.

Under the government’s Made-in-Nigeria agenda, the ministry said it has begun consultations with key stakeholders to strengthen the implementation of the Nigeria First Policy and boost patronage of locally manufactured goods.

These policies have increased manufacturers’ confidence in the economy in the second quarter.

Executives projected further improvement in Q3, with indices for business conditions at 55.6, employment at 55.2 and production at 63.

On a quarter-on-quarter basis, manufacturing growth dipped marginally, from 3.29 percent in the first quarter of 2026 to 2.24 percent in the second quarter of the year.

Manufacturers say the growth offers support for Africa’s largest economy as policymakers push to deepen industrialization and reduce dependence on imports.

While challenges including power supply and logistics remain, the faster expansion suggests manufacturing could contribute more to job creation and GDP growth in the coming quarters if confidence holds.

Muda Yusuf, chief executive officer at the Centre for the Promotion of Private Enterprise (CPPE), noted that given the continuing pressures from energy, finance and logistics costs, manufacturers remain resilient.

Within manufacturing, food, beverages and tobacco grew by 2.79 percent; electrical and electronics by 1.51 percent; and non-metallic products by 2.17 percent.

‘Although these rates moderated, they confirm that productive activity is still expanding and could respond strongly to a reduction in structural costs,’ Yusuf said.

Kayvee Microfinance Bank Limited has announced its financial statement for the year ended December 31, 2025, reporting profit before tax (PBT) of ?1.01 billion, up from ?371 million in 2024. This profitability growth reflects the Bank’s expanding business operations and improved efficiency.

Interest income increased to ?3.10 billion, from ?954.8 million in the prior year, while profit after tax (PAT) climbed to ?687.8 million, compared to ?227.9 million in 2024, underscoring the Bank’s strengthened profitability.

The Bank’s balance sheet expanded significantly during the period. Total assets increased to ?12.45 billion in 2025, from ?6.65 billion reported in 2024, and customer deposits rose from ?5.25 billion in 2024 to ?10.01 billion at the close of the 2025 financial year, underscoring growing customer confidence in the institution’s stability and services. Loans to customers expanded to ?5.87 billion, up from ?3.27 billion in 2024, highlighting the Bank’s commitment to its microfinance mandate.

Olatoun Ogunnaike, the Managing Director of the Bank, noted that the Bank’s 2025 results reflect sustained growth in profitability, with both PBT and PAT exceeding 160% growth. She emphasized that the growth in interest income reflects loan expansion and improved performance, adding that the Bank is well positioned to consolidate its gains in 2026.

Adebayo Ibileke, the Chairman of the Bank, remarked that the relocation of the Bank’s Head Office to the former Ecobank building in Arena Market, Oshodi, Lagos, was one of the highlights of the financial period. He explained that this decision reflects the Bank’s commitment to accommodating more customers and its dedication to serving them in a befitting environment, while ensuring customer transaction needs are fully met.

Commenting on the Bank’s performance, Ayoku Liadi, a Non-Executive Director, emphasized the institution’s growth trajectory under the leadership of the management team appointed in 2023. He noted that the Bank surpassed the ?1 billion profitability milestone within just three years, rising from a profit of ?61 million in 2023. ‘This achievement stands as a clear testament to the dedication and enhanced productivity of our people, who remain committed to continually raising the bar of performance excellence in the microfinance segment.’

Liadi emphasized that this achievement reflects the Bank’s strategic leadership, resilience, operational efficiency, and commitment to sustainable growth. He further noted that the Bank’s strong performance positions it to expand its footprint and strengthen its role in Nigeria’s microfinance sector.

Uber’s decision to wind down its Nigerian operations after 12 years is exposing a deeper problem in the country’s ride-hailing industry, a market that has attracted thousands of digital platforms but has struggled to produce sustainable economics for the companies, drivers or investors behind them.

The US-based mobility company will cease operations in Nigeria on September 2, ending a journey that began in Lagos in 2014 and helped transform how millions of Nigerians book cars and move around the country.

Uber said the decision followed a review of its business priorities and investment focus across Africa, stressing that it remains committed to Sub-Saharan Africa and will continue operating in other markets.

The company also said its exit is unrelated to the recent controversy surrounding e-hailing services at Nigerian airports.

But industry participants say Uber’s departure cannot be viewed in isolation from the increasingly difficult economics of operating a ride-hailing business in Nigeria.

Ibrahim Ayoade, general secretary of the Amalgamated Union of App-Based Transporters of Nigeria (AUATON), told BusinessDay that more than 2,500 ride-hailing applications have attempted to enter the Nigerian market since Uber’s arrival in 2014, based on records of registration attempts with the union.

The overwhelming majority have failed to achieve scale or remain operational.

The history of Nigeria’s ride-hailing market is therefore becoming less a story of digital disruption and more a record of attrition.

Platforms including Oga Taxi, Smart Ride, Gudride, Alpha 1, GLT, RideMe, Tripz, Go247, T-Cab, Taxigo, MotionPlus, Gidicab, Soole, Easy Taxi and Afro Cab have either shut down or become inactive, according to industry records and checks.

Uber’s exit now raises a more consequential question: if one of the world’s largest mobility companies cannot sustain its Nigerian operation, what does that say about the economics confronting smaller local platforms?

The economics are getting harder

Nigeria’s ride-hailing industry operates on a delicate equation. Platforms need enough trips to generate commissions. Drivers need fares high enough to cover fuel, maintenance, financing and personal expenses. Riders, meanwhile, want prices low enough to justify using an app instead of public transport.

Inflation has put pressure on all three sides of that equation. The removal of petrol subsidies in 2023 sharply increased transport operating costs, while vehicle maintenance, insurance and financing expenses have also risen.

By March 2026, the pressure had spilled into open confrontation, with ride-hailing drivers protesting in Lagos over what they described as unsustainable fares and high platform commissions.

Reports have showed that fares had failed to keep pace with fuel costs, with some saying they were working without meaningful gains.

For platforms, raising fares presents its own problem. Nigeria is an extremely price-sensitive market. Higher fares can improve driver economics but reduce demand, pushing commuters toward buses, taxis and other cheaper forms of transportation.

That creates what industry participants describe as a profitability trap: platforms cannot indefinitely subsidise fares, but increasing them risks losing the riders needed to maintain scale.

‘Competition drives down the price mechanism,’ Ayoade said, arguing that aggressive pricing by competitors such as inDrive has made it difficult for platforms maintaining higher operating standards to compete solely on price.

The result is a market where companies compete aggressively for riders while drivers absorb much of the underlying cost.

Drivers are becoming the industry’s pressure point

The growing tension between platforms and drivers may ultimately prove more important than competition between the apps themselves.

Drivers provide the physical infrastructure of the business, which is the vehicles, but carry most of the direct operating expenses.

Fuel must be purchased regardless of whether a trip is profitable. Cars depreciate with every kilometre. Tyres, brakes, suspension, servicing and repairs become increasingly expensive as vehicles accumulate mileage.

AUATON has argued that the current fare and commission structure does not adequately reflect those costs.

The union’s concerns have escalated into protests and petitions to government authorities. In May, it petitioned the Lagos State Government over what it described as worsening working conditions and sought regulatory intervention.

That tension is becoming a structural problem for the industry. If drivers cannot make enough money to maintain their vehicles, the supply of reliable cars eventually deteriorates. If platforms increase fares to compensate, consumers may migrate to cheaper alternatives.

The economics then begin to undermine the very network that makes ride-hailing viable.

Regulation adds another layer

Uber’s exit also comes at a time when Nigeria’s ride-hailing industry is facing increasing regulatory scrutiny.

The recent dispute involving e-hailing services at airports has highlighted the growing complexity of operating across different regulatory environments.

The Federal Airports Authority of Nigeria said in August that it had not imposed a blanket ban on Uber, Bolt or other e-hailing operators, but said commercial transportation services at airports must operate within a framework providing adequate visibility over vehicles, drivers and operations.

Uber itself has explicitly ruled out the airport issue as the reason for its withdrawal from Nigeria.

Still, for operators, the episode illustrates the additional cost of navigating rules that can differ across cities, states and specialised transport environments.

The industry therefore faces a three-way squeeze: rising operating costs, intense price competition and increasingly complex regulation.

The local-platform paradox

Uber’s departure could theoretically create an opening for Nigerian companies.

With one major competitor gone, local platforms could seek to capture displaced riders and drivers. But Nigeria’s history suggests that opportunity alone is not enough.

More than 2,500 platforms have reportedly attempted to enter the market, yet few have survived long enough to build meaningful scale.

The problem is capital. Ride-hailing requires sustained investment in technology, driver acquisition, customer incentives, safety systems, payment infrastructure and marketing. Revenue grows only when a platform achieves sufficient trip density, creating a classic scale problem for startups.

A platform with too few riders struggles to attract drivers. A platform with too few drivers delivers poor service to riders. That is why deep-pocketed international companies have historically had an advantage.

But even scale does not automatically solve the Nigerian problem. Uber’s departure suggests that the question is no longer simply whether a platform can acquire users. It is whether it can build a business model that works after subsidies, incentives and promotional pricing disappear.

What happens to Bolt and inDrive?

Uber’s withdrawal is likely to intensify competition between the remaining major platforms, particularly Bolt and inDrive.

In the short term, the companies could benefit from riders and drivers displaced by Uber. But the longer-term outcome could be more complicated.

If platforms attempt to capture Uber’s users through aggressive fares and driver incentives, the industry could enter another cycle of price competition. If they raise fares instead, they risk pushing consumers towards cheaper transport alternatives.

Ayoade expects pricing to become an increasingly important issue.

‘Most of the people park their cars to go buy the e-earnings because they know it’s the cheapest way to move around,’ he said, arguing that fares ultimately have to reflect fuel, maintenance and vehicle replacement costs.

His proposal is for a more structured regulatory framework that establishes a minimum economic benchmark for trips, rather than leaving platforms to compete by continuously lowering prices.

Such a framework, he argues, would provide greater certainty for both drivers and operators.

Nigeria’s mobility market is not disappearing

Uber’s exit should not be interpreted as the end of digital mobility in Nigeria. The underlying demand remains enormous.

A growing urban population, congestion, smartphone adoption and inadequate public transportation infrastructure continue to create a strong case for app-based mobility.

The challenge is converting that demand into sustainable revenue. Industry analysts have similarly identified fuel costs, vehicle operating expenses and the trade-off between fares and demand as central challenges for Nigeria’s mobility platforms. That means the next phase of Nigeria’s ride-hailing industry may look very different from the first.

The era of simply adding more cars and riders may be giving way to a battle over unit economics. Platforms may need to diversify beyond conventional point-to-point rides, improve vehicle financing, adopt alternative-energy vehicles, reduce operating costs and develop new commercial models.

For investors, the lesson is equally significant: a large addressable market does not necessarily translate into a profitable market.

For government, Uber’s departure should prompt a broader question about whether regulation is creating the conditions for a sustainable mobility ecosystem or simply reacting to problems after they emerge.

And for Nigerian entrepreneurs, the disappearance of Uber could be both an opportunity and a warning.

There is now more room for local platforms to capture market share. But the fate of hundreds of failed operators shows that capturing passengers is easier than building a profitable mobility company.

Uber arrived in Nigeria in 2014 promising to change the way Nigerians moved. Twelve years later, its departure leaves behind a market crowded with competitors but still searching for an economic model that works for the rider, the driver and the platform.

The real story of Uber’s exit, therefore, may not be the loss of one company. It may be the beginning of Nigeria’s reckoning with whether its ride-hailing industry can survive on the economics it has built over the past decade.