Ride-hailing company Uber said Wednesday it was shutting down its business in Nigeria and Uganda, effective immediately.

The US-based firm, founded in 2009, entered Nigeria, Africa's most populous country in 2014 - first in the mega-city of Lagos, before expanding throughout the country.

"After a thorough review of our business, we have made the tough decision to wind down our operations in Nigeria, effective 2 September 2026," the company said in a statement, without providing further details.

The company also said Wednesday it was halting operations in Uganda. It left Tanzania earlier this year.

Global restructure

The exit from Nigeria and Uganda came the same day Uber CEO Dara Khosrowshahi said the company would cut its global workforce by 10 percent.

The move is expected to affect the livelihood of Nigerian drivers who depended on the platform - some of whom are already reeling from the high cost of fuel.

Nigerians have been living through a brutal cost of living crisis amid economic overhauls introduced by President Bola Tinubu.

Economists and investors have supported the measures, citing increased macro-economic stability, though critics say the benefits of the reforms have yet to trickle down to ordinary people.

Resolve disputes

In 2023, Uber Nigeria country manager Tope Akinwunmi said the company's operations had contributed billions of naira (millions of dollars) to the economy, with drivers collectively earning about 6.1 billion naira annually.

But Uber drivers have long complained that the fares on the app were too low.

The company said its help centre would be available through September 23 to resolve remaining disputes.

Competing apps such as Bolt and InDrive also operate in Nigeria.