Uber’s Economic Contribution in Nigeria
Ride-hailing giant Uber contributed an estimated N34 billion to Nigeria’s economy in 2023, according to the Uber Nigeria Economic Impact Report conducted by research firm Public First.
The findings were unveiled at the Lagos Road Mobility Summit, co-hosted by Uber and the Lagos State Ministry of Transport. Themed “Reimagining an Inclusive Road Safety Strategy,” the summit brought together government agencies, global safety experts, and private sector stakeholders to address Nigeria’s transportation and road safety challenges.
Benefits to Drivers
According to Deepesh Thomas, Uber’s General Manager for Sub-Saharan Africa, Uber’s impact goes beyond direct economic contributions:
- Driver earnings: Collectively, drivers earned N6.1 billion more in 2023, with average incomes 34% higher than their next best alternative.
- Flexibility valued at N6.3 billion: A key benefit for drivers, with 88% stating it helps them balance family responsibilities.
- Consumer surplus of nearly N500 billion: Riders saved on time, cost, and convenience, highlighting the platform’s wider economic impact.
Why Nigerians Choose Uber
Safety and convenience remain the top reasons for using Uber in Nigeria:
- 97% of riders cited safety as their primary reason for using the app.
- 78% of women said Uber was the safest way to get home at night.
- 79% of riders agreed that Uber helps reduce drunk driving by offering a reliable late-night travel option.
Broader Impact on Tourism and the Nighttime Economy
Beyond individual benefits, Uber also contributes significantly to Nigeria’s broader economy:
- N930 million was generated for the nighttime economy in 2023.
- N5.4 billion added to Nigeria’s growing tourism sector.
- Riders collectively saved 1.8 million hours, which could be redirected to work, leisure, or family time.
Competition in Nigeria’s Ride-Hailing Market
While Uber continues to make a strong impact, competition in Nigeria’s ride-hailing market is intensifying. A recent report by Sensor Tower revealed that Bolt has become Nigeria’s most downloaded travel and mobility app, overtaking Uber and inDrive.
Globally, Bolt serves over 200 million customers across more than 50 countries and now holds the top spot in 23 markets, including Nigeria.
Final Thoughts
Uber’s N34 billion contribution underscores the platform’s vital role in Nigeria’s economy, from empowering drivers to enhancing tourism and nighttime activities. However, with Bolt’s rising dominance, the competition in Nigeria’s ride-hailing sector is set to intensify, giving riders even more choices in 2025 and beyond.
