Uber Exits Nigeria: Will MTN Be Next?

The Ride-Hailing Giant’s Departure and the Growing Exodus of Multinationals

Uber’s announcement that it will cease operations in Nigeria effective September 2, 2026, has sent shockwaves through the country’s business community and raised a critical question: if a global tech giant with deep pockets can’t make it work in Africa’s most populous nation, who can?

The company’s decision to exit Nigeria after 12 years, alongside Uganda, follows its earlier withdrawal from Tanzania in January 2026 and Côte d’Ivoire in September 2025. Uber will continue operating in Egypt, Ghana, Kenya, and South Africa, signaling a strategic retreat rather than a complete abandonment of the continent.

Why Uber Left: The Brutal Economics of Ride-Hailing in Nigeria

Uber’s departure was not sudden. It was the culmination of years of mounting pressures that made the Nigerian market increasingly unsustainable.

Rising Operating Costs

The removal of petrol subsidies in 2023 dramatically increased transport operating costs. Vehicle maintenance, insurance, and financing expenses also surged. 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.

The Affordability Paradox

Nigeria’s ride-hailing market presents a fundamental contradiction. Platforms need enough trips to generate commissions. Drivers need fares high enough to cover fuel, maintenance, and personal expenses. Riders want prices low enough to justify using an app instead of public transport. Inflation has put pressure on all three sides of that equation simultaneously.

Driver Discontent and the “Offline” Crisis

For years, Nigerian drivers faced mounting pressure from steep platform commissions, surging fuel prices, and security threats. The resulting tension sparked strikes, protests, and an unprecedented rise in drivers negotiating “offline” trips directly with passengers. Taking rides offline bypassed Uber’s commissions but shattered the fundamental value proposition of the app.

Intense Competition

When Uber entered Nigeria in 2014, app-based ride-hailing was still relatively new. Today, riders can choose from platforms including Bolt, inDrive, Rida, and LagRide. InDrive provides an alternative to Uber’s platform-set pricing by allowing riders and drivers to negotiate fares, while Bolt even tested a similar fare-negotiation feature in selected Nigerian cities.

Regulatory Friction

The regulatory debate did not start with airport authorities; it reached a boiling point years prior with state governments. In Lagos—Uber’s largest Nigerian market—the state government mandated real-time trip data access, driver verification, and strict operational safety standards. Stakeholders noted that while competing platforms moved toward compliance, Uber routinely pushed back, seeking delays and raising data-sharing concerns.

The Xenophobia Factor: A Potential Catalyst for MTN’s Exit

While Uber’s exit was driven primarily by economic factors, there is growing concern that MTN, Africa’s largest telecommunications company, could face pressure to leave Nigeria due to rising xenophobic tensions between Nigeria and South Africa.

The Oshiomhole Threat

In May 2026, Senator Adams Oshiomhole, representing Edo North Senatorial District, called for the revocation of licences of South African companies operating in Nigeria, including MTN and MultiChoice (owners of DSTV), following renewed xenophobic attacks against Nigerians in South Africa.

“This Senate should adopt a position that MTN, a South African company that is cutting away millions of dollars from Nigeria every day, should have Nigeria nationalise it and withdraw its licence,” Oshiomhole declared during plenary.

The senator argued that such action would not only serve as a deterrent but also create opportunities for indigenous firms. He extended the call to MultiChoice, urging the Federal Government to revoke DSTV’s licence over alleged exploitative practices.

Government Consideration of Retaliatory Measures

The threat against South African companies is not limited to legislative rhetoric. Minister of Foreign Affairs, Ambassador Bianca Odumegwu-Ojukwu, disclosed that the Federal Government might be compelled to explore other options if xenophobic attacks persist.

“As I indicated before, there are these huge conglomerates. By the way, there are over 120 South African companies operating in Nigeria,” she said. “Nobody is asking them to provide proof of identity. Nobody is asking South African staff working there whether they are South Africans or Nigerians, and nobody is taking over their shops or businesses. But this is happening to Nigerians in South Africa. So, I think that at some point, we really have to review the options available to us.”

The minister specifically named MTN, MultiChoice, Stanbic, and Protea as South African brands that could face scrutiny.

Oshiomhole’s Nationalisation Call

In a subsequent interview, Oshiomhole doubled down on his call for Nigerian ownership of MTN, insisting that no foreign investment should be placed above the lives of Nigerians.

“I’m aware that MTN is quoted on the stock exchange. Nigerian shareholders can hold on to their shares, but we should take away South African control. We should re-privatise it so Nigerians can take it over, and there would be no repatriation of funds to South Africa,” he said.

Why MTN Might Decide to Leave Nigeria

Beyond the xenophobia-driven political pressure, MTN faces several economic and regulatory challenges that could influence its long-term commitment to Nigeria.

Regulatory Uncertainty

The Federal Competition and Consumer Protection Commission (FCCPC) crackdown on airtime lending wiped out nearly three-quarters of MTN Nigeria’s fintech revenue in the second quarter of 2026. Fintech revenue plummeted 72.4%, falling from ₦471 billion in Q1 to just ₦130 billion in Q2 after MTN suspended its XtraTime service in April to comply with new FCCPC regulations.

The company also faced expected credit losses on trade receivables that jumped more than fivefold, increasing from ₦2.98 billion in Q1 to ₦15.97 billion in Q2. MTN wrote off an additional ₦3.2 billion relating to historical reconciliation variances from legacy systems.

Currency and Economic Pressures

While MTN Nigeria posted impressive financial results in the first half of 2026—with profit before tax surging 75.4% to ₦1.09 trillion—the broader economic environment remains challenging. Currency volatility and inflation continue to pressure operating margins, even as the company benefits from the 50% tariff adjustment approved by the Nigerian Communications Commission.

Global Portfolio Rationalisation

Uber’s exit exemplifies a broader trend of multinational companies reassessing their African operations. The company explicitly stated that its departure followed “a broad review of its evolving business priorities and investment focus across Africa.”

If MTN’s global leadership determines that political risks in Nigeria—including potential nationalisation threats—outweigh the benefits of operating in Africa’s largest market, it could follow a similar path.

10 Major Companies That Have Recently Left Nigeria

Uber joins a growing list of multinational companies that have exited Nigeria, divested, or significantly scaled back operations since 2023. Here are ten notable examples:

Additional companies that have restructured or reduced their Nigerian presence include Heineken/Champion Breweries (sold majority stake to EnjoyCorp), Pick n Pay (sold 51% stake), Netflix (stopped commissioning Nigerian original productions), Diageo Plc, and PZ Cussons Nigeria Plc.

What This Means for Nigeria’s Economy

The exodus of multinational companies raises serious concerns about Nigeria’s investment climate. Financial analysts point to a combination of factors driving these exits: foreign exchange shortages, naira depreciation, higher energy costs, regulatory uncertainty, and an increasingly difficult operating environment.

For MTN, the calculus is complex. Nigeria represents one of its largest markets, with 92.2 million subscribers and substantial infrastructure investments. The company’s half-year results demonstrate that profitable operations remain possible despite challenging conditions.

However, the combination of xenophobia-driven political pressure, regulatory crackdowns, and currency volatility creates genuine uncertainty. If the Nigerian government follows through on threats to revoke MTN’s licence or force nationalisation, the company may have little choice but to reconsider its commitment to the country.

Based on the latest information, MTN Nigeria’s situation is a complex mix of immense challenges and incredible resilience. While 9mobile has been crippled by a specific crisis, MTN’s survival and continued dominance stem from its deep integration into the Nigerian economy and its ability to post strong financial results despite significant headwinds.

Here is a breakdown of why MTN has stayed and how it is surviving.

📊 Market Comparison: MTN vs. 9mobile

To understand the difference, it helps to compare their current market positions. While 9mobile (now T2) has faded, MTN has consolidated its dominance.

🛡️ Why MTN Has Not Left Nigeria

Despite threats from Nigerian senators to revoke its license due to xenophobia, MTN has strong reasons to stay.

• It’s Deeply Integrated into Nigeria: The company’s CEO, Karl Toriola, argues that MTN Nigeria is “a Nigerian company through and through”. It is incorporated in Nigeria and listed on the Nigerian Exchange. Crucially, about 11 million Nigerians have indirect stakes in the company through their pension funds. This makes any move to nationalize it a direct attack on the savings of Nigerian citizens.

• It is Hugely Profitable: MTN’s most recent financial results show it is not just surviving but thriving. For the first half of 2026, the company recorded a profit before tax of N1.09 trillion, a surge of 75.4%. This financial strength allows it to weather economic storms that have felled its competitors.

• Immense Market Dominance: MTN controls over 50% of Nigeria’s telecom market with about 98.6 million subscribers. Any disruption to its operations would have severe economic and social consequences for the entire country, which gives the company a significant degree of strategic leverage against political threats.

• Strategic Investment and Support: A new owner plans to invest $3 billion and has a roaming partnership with MTN aimed at reviving the struggling network.

🐣 How MTN Is Surviving While Others Are Crippled

MTN’s survival isn’t just about its size; it’s about its resilience and strategic response to challenges.

• Massive Capital Investment: MTN is reinvesting heavily in its network. In 2025, it increased its capital expenditure to about N1 trillion and spent another N620.5 billion in the first half of 2026 to strengthen its network and expand capacity. This commitment ensures it can handle the growing demand for data.

• Diversification and Growth: The company’s growth is primarily driven by data, with data revenue surging by 38.3%. It also has a rapidly growing mobile money (MoMo) service, with active wallets increasing by over 130%. This diversification provides new revenue streams outside of traditional voice services.

• Managing Regulatory Headwinds: MTN is not immune to regulatory challenges. A recent FCCPC crackdown on airtime lending wiped out nearly three-quarters of its fintech revenue in one quarter. However, the core business remains strong enough to absorb these shocks, unlike 9mobile, which did not have that cushion. The tariff increase was also a “necessity” to keep operators financially afloat.

In essence, MTN survives because it is a financial and economic powerhouse that has become deeply intertwined with Nigeria’s own economy. While it faces real challenges, its market dominance, massive investment capacity, and strategic importance give it a level of resilience that has allowed it to avoid the fate of 9mobile.

Conclusion: A Warning Sign for Nigeria

Uber’s exit should serve as a wake-up call. When a company with Uber’s resources and global expertise determines that Nigeria’s market is no longer viable, it signals deeper structural problems that require urgent attention.

For MTN, the decision to stay or leave will ultimately depend on whether the Nigerian government creates an environment that balances national interests with respect for foreign investment. The xenophobic attacks in South Africa have inflamed public sentiment, and politicians are under pressure to respond. But targeting South African companies operating in Nigeria—including MTN, which employs thousands of Nigerians and has invested billions in infrastructure—could backfire spectacularly.

The question is no longer whether multinational companies will leave Nigeria. It’s who will be next.