Riding on Rough Roads – The Troubled State of Ride-Hailing in Nigeria

Ride-hailing services like Uber, Bolt, and newcomers including Lagos state-backed LagRide and the bidding-based InDrive have become embedded in urban transportation across Nigeria. Since Uber’s debut in Lagos in 2014 and Bolt’s (formerly Taxify) in 2016, these platforms promised a tech-enabled upgrade to taxis – offering convenience, safety, and comfort. Today, however, riders in major cities such as Lagos, Abuja, and Port Harcourt report that the reality has drifted far from those early promises. Aging, poorly maintained vehicles (often without functional air conditioning), drivers angling for cash payments instead of in-app transactions, and a general decline in service quality have soured the experience for many customers. This report delves into the current state of Nigeria’s ride-hailing industry, examining rider and driver experiences, the economic and regulatory forces at play, and how these challenges compare with more regulated markets abroad.

Frustrated Riders: Dilapidated Cars and No Air-Conditioning

One of the most common complaints from riders in Lagos and other cities is the poor condition of many ride-hailing vehicles. In the early years, both Uber and Taxify enforced strict standards – requiring vehicles to be new or in excellent shape – but those standards have seemingly lapsed. Uber’s own policy still officially mandates that Nigerian partner vehicles be model year 2000 or newer, a 4-door car in good condition with no cosmetic damage, and with working windows and air conditioning​. In practice, riders frequently encounter worn-out sedans with cracked interiors, rickety suspensions, and often non-functional air conditioners, especially in the budget UberX or Bolt categories. In Nigeria’s sweltering heat, lack of AC isn’t a minor inconvenience – it can make a trip downright unbearable. “For many passengers, AC is non-negotiable,” notes one Lagos rider, who said “the last time I got into a ride-hailing car without AC was sometime last year”​ – implying she immediately abandons rides that arrive without cooling. Yet drivers commonly switch off the AC to save fuel, or because the AC system is simply broken from lack of maintenance.

This tension over temperature recently prompted an industry reaction. In March 2025, Bolt Nigeria announced a mandate that all drivers – including those in the low-cost categories – must keep the air conditioning on during trips​. The move came after a series of viral incidents that highlighted a disconnect between passenger expectations and driver realities on air-conditioning. In one case, a young female Uber passenger in Lagos even lashed out and vandalized a driver’s car in anger over his faulty AC (an extreme example of rider frustration)​. Drivers, on the other hand, protest that constantly running AC dramatically increases their fuel consumption and eats into already-thin earnings. A recent anecdote encapsulates this: an Uber driver begged his passenger to allow a mid-trip stop for fuel, explaining that some riders “flip out” if he doesn’t keep the AC on, and he was struggling to afford the extra fuel for climate control​. Rising fuel prices have only intensified this problem, forcing drivers into a lose-lose choice between keeping riders happy or conserving expenses.

“Cash Only, please”: Payment Delays and Offline Trips

Perhaps nothing illustrates the strained state of Nigeria’s ride-hailing ecosystem like the pervasive preference for cash payments over cashless transactions. Unlike in many countries where Uber rides are typically billed to a credit card, in Nigeria riders can often choose to pay cash at the end of a trip – and drivers overwhelmingly encourage this. The reason is simple: when riders pay via the app (using a card or other digital method), drivers may wait a week or longer to receive the payout from Uber, whereas cash handed over is money in their pocket immediately​. In fact, it’s common for Nigerian Uber drivers to outright decline or cancel trips if they see the rider’s chosen payment is “Card”, or to politely request, “Oga/Madam, can you pay cash instead?” Drivers have been known to detour to ATMs at riders’ request so that the fare can be settled in cash​. While Uber does offer a “cash out” feature to withdraw earnings, many drivers allege that routine weekly payments through the platform are unreliable or delayed.

Case in point: one Abuja Uber driver’s ordeal recently made the rounds in rider-driver chatter. He claimed that Uber Nigeria owed him about ₦280,000 (roughly $200) in accumulated fares from cashless trips that hadn’t been disbursed, leaving him in financial limbo for weeks. According to the account, it was only after a sympathetic passenger intervened – using their own contacts or persistently following up with Uber support – that the company finally released a portion of the funds (around ₦80,000). As of that report, the driver was still awaiting the remaining ₦200,000. While this is an extreme scenario, it resonated with many drivers who say the payment pipeline for card transactions is beset by delays and discrepancies. (Uber’s support pages acknowledge that some weekly deposits may be delayed due to bank processing issues​, but drivers often suspect the holdup is on Uber’s end in Nigeria.)

To avoid such predicaments, drivers resort to various tactics. Some drivers ask riders during a trip with multiple stops to let them “go offline” for part of the journey – essentially handling a segment of the ride off the app, for a negotiated cash sum. For example, if a passenger requests two drop-offs (a common feature in the apps allowing multi-stop rides), a driver might complete the first leg on the app, then plead with the rider to settle the second leg privately in cash. From the rider’s perspective, this undermines the transparency and insurance coverage that the app is supposed to provide (fares are no longer metered, and any incident off-app would be hard to report). From the driver’s view, it’s a way to avoid Uber’s commission on that portion and immediately pocket the fare, or sometimes to dodge the platform’s lack of a cash option for subsequent stops. On LagRide (the state-run platform), this tension came to a head recently – LagRide’s management accused its drivers of encouraging riders to pay cash and even of redirecting trips to competitor apps, which the drivers admitted was true, blaming LagRide’s policy of disabling cash payments (and forcing weekly bank payouts) for their behaviour. In response, LagRide threatened to deploy government task force officials to catch and penalize drivers doing off-app deals, further fuelling a brewing conflict​.

Uber’s tipping problem: Another sore point for users and drivers is the lack of an in-app tipping culture. In many countries, the Uber app prompts riders to leave a tip for their driver after rating the trip – a feature Uber Nigeria only introduced in 2019​ and which, to this day, many Nigerian users either don’t see or rarely use. Riders often prefer to hand small gratuities in cash (if at all), and some drivers say that in-app tips are so infrequent as to be a non-factor. This contrasts with markets like the U.S. where tipping can substantially boost driver income. The absence of robust tipping means Nigerian drivers rely entirely on fares (minus the app commission) for income, making them even more protective of each naira earned.

Drivers on the Brink: Economic Pressures Mount

Behind the deteriorating rider experience lies a harsh economic reality for drivers. Nigeria’s macroeconomic conditions over the past two years have put immense strain on anyone trying to make a living driving full-time for Uber or Bolt. Chief among these pressures is the cost of fuel, which skyrocketed in 2023 after the government removed long-standing petrol subsidies. In June 2023, soon after the subsidy repeal, petrol prices jumped from about ₦185 per litre to ₦500+ and kept climbing, reaching roughly ₦617/L by mid-July 2023 – the highest in Nigeria’s history​. For drivers, who burn through dozens of litres of fuel per day in Lagos traffic, this was an overnight tripling of their primary operating cost. Suddenly, that quick trip with the AC on became a luxury they could ill afford. Inflation has compounded the problem: Nigeria’s inflation rate hit 34% by mid-2024 (a 18-year high) and still hovers in the mid-20s percentile​, meaning the price of engine oil, tires, spare parts – virtually every input needed to keep a car running – has surged. Even the cost of basic living for drivers (food, rent, etc.) has gone up, squeezing their disposable income.

Drivers and vehicle owners have responded in drastic ways. Many are exiting the ride-hailing business entirely because it no longer yields viable profit. “Some investors who bought cars and gave them to drivers are finding it hard to cope,” said Jossy Olawale, a spokesperson for the app drivers’ union, noting that car owners have begun selling off their vehicles and withdrawing from the business due to the spike in fuel prices and maintenance costs​. Every day on drivers’ WhatsApp and Facebook groups, there are new posts from drivers seeking a car to rent or “hire-purchase” because their previous vehicle’s owner pulled it from the platform, unable to bear the expense of upkeep. This exodus has a circular effect: as some of the better-maintained cars and professional drivers leave, the proportion of sub-par cars and desperate drivers on the apps increases, leading to more complaints and safety issues.

Fares vs. costs: Part of the discontent is that while costs have ballooned, fares have not kept up proportionately. Uber and Bolt did implement fare hikes in response to fuel price jumps – for instance, Uber’s base fare in Lagos was raised from ₦850 to ₦1,200 in late 2023​ – yet drivers argue this barely dents the impact of 300% higher fuel prices. A 10 km trip that might have cost a rider ~₦1,500 a couple years ago might now be ₦2,500, but if the fuel for that trip rose from ₦300 to ₦900, the driver’s margin is thinner than ever once you subtract Uber’s 20-25% commission. Drivers’ income in real terms has plunged, leading to what one union leader called “poverty wages” for full-time drivers. Indeed, the Amalgamated Union of App-Based Transporters of Nigeria (AUATON) – a nascent drivers’ union – estimates that in Lagos about 20,000 drivers collectively generate around ₦400 million in fares daily, of which the apps take roughly ₦100 million (25%)​. That translates to each active driver grossing ~₦40,000 per day on average​, which might sound decent until one tallies the expenses (fuel at perhaps ₦15,000+ per day for heavy users, vehicle lease payments or loans, repairs, etc.). Little wonder that drivers have been agitating for the platforms to reduce their commission from 25% down to 10% or even 5%​ to allow operators a bigger share of each fare.

Strikes and protests have become increasingly common. In April 2025, app-based drivers in Lagos announced plans for a May 1 “Workers’ Day” strike, pledging to halt Uber, Bolt, inDrive, LagRide and others for 24 hours​. The grievances listed by the organizing union (AUATON) are wide-ranging: “poor wages, unsafe working conditions, unjust deactivations (banning of drivers by the apps without due process), excessive commissions, lack of support”​. It’s a litany that underscores how driver welfare and rider experience are two sides of the same coin. When drivers feel exploited or desperate, service quality naturally suffers – cars don’t get fixed, rules get bent, and riders feel the effects. Drivers, for their part, also face safety risks: there have been reports of drivers being lured by criminals (posing as riders) and robbed or even killed, especially in Abuja​. InDrive drivers in Lagos recently boycotted the platform over security concerns and what they called unsustainably low fares offered to riders​. All these issues feed into a vicious cycle of disillusionment that now pervades Nigeria’s ride-hailing sector.

Quality Control on the Decline

When Uber first arrived in Nigeria, it prided itself on a premium experience – one press report from the mid-2010s noted that drivers had to undergo training and that vehicles were subject to inspection and even a city knowledge test​. Those days of rigorous vetting seem like a distant memory. As the platforms scaled up, the emphasis on quality appears to have diminished. A fleet owner in Lagos observed that “in the beginning, Uber and Taxify had a more rigorous training and indoctrination system, but they have been unable to keep up as drivers increased on the platforms. This is one of the problems of growth.”​ Now, many drivers get onboarded via a quick online orientation and quiz, with little in-person evaluation. “Cars are more scrutinised than the people driving them,” the same source said – noting that Uber once tested drivers on knowledge of the city and basic aptitude, whereas “the process has deteriorated over the years to virtual online tests”​.

Vehicle inspection and enforcement of standards by the companies have also grown lax, according to industry insiders. Bolt’s onboarding in Nigeria was described by one driver as so cursory that “you can walk in and walk out a driver 1 hour later,” after a basic check of car documents and a short briefing​. Uber at least formally requires a vehicle inspection report and valid safety certificates (like a government roadworthiness certificate and hackney permit) before a car is allowed on the platform​. In Lagos, drivers are supposed to renew these documents yearly and undergo inspections at Uber’s partner garages (such as Cars45 centres). But many riders suspect these checks are not uniformly enforced. Indeed, the Lagos State government’s own regulations would have been even stricter – a 2020 state guideline (never fully enforced) stated that any vehicle used as a taxi or e-hailing cab must be brand new or at most 3 years old, with a special taxicab inspection regime. Had that rule taken effect, the vast majority of current Uber/Bolt cars in Lagos (which are often 8-12 years old or more) would be disqualified. Instead, Uber’s practical age limit remains “year 2000 or newer”​ – meaning a car up to 25 years old could legally operate if it runs. Such a wide allowance, combined with weak enforcement of maintenance standards, has opened the door to very old, high-mileage vehicles ferrying passengers daily. Riders complain of cars with bald tires, thin brake pads, or engines that threaten to stall in traffic jams. “A driver with [a] bad a/c should not be on a ride-hailing platform,” one commenter lamented on a Nigerian forum, arguing that the companies should remove cars with faulty air-conditioning or other deficiencies​. The consensus among frequent riders is that quality assurance by Uber Nigeria and its rivals has slipped sharply in recent years, leaving it up to customers to report issues – and even then, the outcome is uncertain.

From the customer service angle, both riders and drivers bemoan the responsiveness of the platforms’ support teams. When things go wrong – be it a driver taking a longer route to pad the fare, or a rider vomiting in a car – complaint resolution tends to be slow and opaque. Riders often say their in-app complaints yield generic replies. (Uber Nigeria’s spokesperson insisted that “riders and drivers are promptly responded to whenever they make a report via the in-app help function”, but many users remain unconvinced.) Drivers, on the other hand, feel that any complaint from a rider is taken at face value by the app, sometimes leading to automatic temporary deactivations (“soft bans”) without a chance for the driver to explain. This lack of a fair, clear dispute resolution process further strains the trust between the stakeholders.

Regulatory Gaps and Attempts at Oversight

Who is responsible for enforcing standards in the ride-hailing industry? In theory, it’s a combination of the companies themselves and government regulators. In practice, regulation has been a patchwork and largely ineffective in protecting consumer interests. Lagos State led the charge in early 2020 by proposing a comprehensive regulatory framework for e-hailing. The rules, as initially unveiled, included steep licensing fees for operators (₦25 million for platforms with over 1,000 drivers)​, a 10% service tax on each ride to be paid to the state, data-sharing requirements, and stringent vehicle specifications (the controversial “brand new or under 3 years old” mandate for cars). After an outcry from both the public and the ride-hailing companies – who called the regulations “inconsistent and unclear”​ – Lagos backtracked on some provisions. The license fees were reduced by 20%, the 10% per-ride tax was replaced with a much smaller flat ₦20 levy​, and the strict vehicle age rule was not rigidly enforced in practice. The regulations did affirm that drivers in Lagos must have a special Hackney permit, a Lagos State Drivers’ Institute (LASDRI) certification, and driver badges​, integrating the app drivers into the existing transport licensing system on paper. However, enforcement has been half-hearted. Spot-checks by authorities remain sporadic; occasionally, Lagos traffic officials or VIOs (Vehicle Inspection Officers) will conduct sweeps to impound vehicles without proper papers, but these tend to be announced crackdowns rather than sustained oversight.

Abuja (the Federal Capital Territory) has even less in the way of bespoke e-hailing regulation. Drivers in Abuja are not required to have special licenses beyond a standard driving license, and there is no equivalent of Lagos’ e-hailing license framework. This has led to some tension with traditional cab unions and law enforcement. There have been instances of Abuja municipal authorities attempting to restrict where ride-hailing cars can operate (e.g., around airports or hotels) or extorting drivers for informal fees. But broadly, the regulatory environment across Nigeria’s cities leaves a lot of room for the platforms to self-regulate – which, as noted, they often fail to do adequately.

In response to rising complaints, the Lagos State Ministry of Transportation has occasionally issued warnings to the ride-hailing firms to improve their processes. During the height of the 2020 regulatory debate, officials emphasized that passenger safety and service quality were paramount reasons for intervention. Ironically, the Lagos State government also tried to become a service provider itself through LagRide, launched in 2022 with an initial fleet of 1,000 brand-new GAC sedans and SUVs​. The idea was to set a gold standard: riders could hail a LagRide car via an app, the cars would be owned by the state (on a lease-to-own basis for drivers) ensuring uniform quality, and drivers would be carefully vetted. For a while, many Lagosians enjoyed LagRide’s shiny blue cars – which featured working AC, polite “captains” (drivers), and even amenities like onboard Wi-Fi in some cases. But the sustainability of this model has come into question. By 2023, drivers of LagRide were themselves protesting the scheme, saying the weekly lease repayments were exorbitant and that the operator (a private firm contracted by the government) wasn’t providing support for vehicle maintenance​. By March 2025, Lagos State had handed over management of LagRide to the local distributor of GAC Motors (CIG Motors) to overhaul the business model​. LagRide drivers complained that the platform had even disabled the cash-payment option, forcing all transactions to go through the app with weekly bank payouts – a policy intended to ensure drivers didn’t default on remitting the government’s share, but which led drivers to start soliciting cash outside the app, the very behavior LagRide was created to eliminate. The LagRide saga underscores that government intervention, while well-intentioned, has yet to fully solve the quality and trust issues in the market.

Lagos’s state-owned LagRide taxis, launched with 1,000 new vehicles in 2022, were meant to ensure high standards. The light-blue LagRide fleet (pictured) offered clean, air-conditioned cars, but the scheme has struggled with driver discontent and high operating costs.

Meanwhile, traditional transport unions and taxi associations have had a mixed response. Some have tried to integrate ride-hailing drivers (the AUATON union is even affiliated with the national labor congress), while others view them as competition to be stifled. There were reports in the past of ride-hailing drivers being harassed by local taxi union members, though less so in recent years as e-hailing became firmly entrenched. The push now, including by some driver groups, is for federal regulation of ride-hailing – a standardized set of rules across all states, possibly including mandated vehicle inspections, fare minimums, and an independent dispute resolution mechanism. As of 2025, no such federal framework exists, leaving each state to improvise. That regulatory patchwork often leaves riders with little recourse beyond the companies’ goodwill.

Comparing to Overseas: A Tale of Two Systems

The challenges facing Uber and its peers in Nigeria stand in stark contrast to operations in more mature, tightly regulated markets like Europe and North America. In London, for instance, Uber cars cannot be older than 10-15 years (with even stricter 7-year limits being phased in for some categories)​, and every vehicle must pass regular inspections to maintain its Private Hire Vehicle licence. Drivers in London also undergo background checks and medical exams, and the city’s transport regulator (TfL) keeps a close eye on Uber’s compliance – famously threatening to revoke Uber’s license a few years ago over safety lapses. In the United States, major cities require Uber/Lyft vehicles to meet certain age and safety criteria (usually under 10 years old, with annual vehicle inspections). Air conditioning is virtually a given in those markets, and a driver continually refusing to use AC (barring a mechanical issue) would likely get low ratings and risk deactivation. Moreover, cash is rarely used in ride-hailing outside cash-centric economies; in-app payments are the norm, and drivers can often cash out their earnings instantly for a small fee, mitigating the kind of payment delays Nigerian drivers face. Uber drivers in the U.S. also benefit from a built-in tipping feature that riders are accustomed to using – 100% of those tips go to drivers, providing a cushion for low fares​. Nigerian riders, by contrast, are not culturally inclined to tip for taxi service, and the app’s tipping option is little-known (only introduced after 2019).

Another difference is enforcement of quality and support infrastructure. In many Western cities, if a rider flags a serious issue – say, a car that’s unsafely maintained or a driver engaging in misconduct – Uber or Bolt will investigate and can require the driver to fix the problem or face suspension. In Nigeria, riders suspect the companies are hesitant to deactivate drivers for quality issues because replacement drivers are not easy to find and driver churn is high. There’s also less external pressure: consumer protection bodies or transport regulators seldom step in for individual rider complaints in Nigeria, whereas abroad, a pattern of complaints could attract lawsuits or regulatory fines. All these factors mean that the Nigerian ride-hailing experience is far more “hands-off” – riders are essentially on their own to vet the car that shows up and negotiate amicably with the driver.

That said, the model is fundamentally similar worldwide: independent contractors driving their own (or leased) cars, under a platform that takes a cut and sets the fares. The systemic issues – balancing driver earnings with affordable rider fares, ensuring safety, and maintaining service quality at scale – are challenges everywhere. Nigerian drivers echo many grievances of Uber drivers globally (for example, New York drivers have also protested high commissions and unfair deactivations, and South African Uber drivers have raised alarms about being targeted for cash robberies​). What makes Nigeria’s situation acute is the intensity of economic stress and a weaker enforcement of standards. It’s a reminder that technology alone can’t overcome ground realities: when inflation is over 20% and unemployment is high, any job that seems accessible (like ride-hailing) will attract people struggling to make ends meet, even if they lack training or suitable vehicles. And those people will then interact daily with customers, for better or worse.

A Bumpy Road Ahead

Nigeria’s ride-hailing sector finds itself at a crossroads. On one hand, services like Uber, Bolt, inDrive, and LagRide have unquestionably transformed mobility for millions of Nigerians – they’ve provided jobs to thousands of drivers and convenient transportation to commuters who previously had to haggle with taxi drivers or brave the chaos of danfo buses. The platforms have introduced innovations like GPS tracking, digital payments, and rider feedback into a transport culture that sorely needed them. But the initial sheen has worn off, and the industry is now mired in systemic issues that threaten its long-term sustainability and public image.

For riders in Lagos, Abuja, Port Harcourt and beyond, the daily annoyances – sweltering, un-air-conditioned rides, requests for off-app payments, drivers cancelling or arriving late, cars that feel one bad bump away from falling apart – have chipped away at trust. “I still use Uber because it’s what we have, but I brace myself each time,” says Ada, a professional in Abuja. “Will the car be OK? Will the driver insist on cash? It’s a coin toss these days.” Such experiences are a far cry from Uber’s global brand promise of consistent, comfortable rides. If customers begin to view ride-hailing as no better than the old alternatives, they may explore other options (already, some are returning to patronizing better-maintained local taxi companies or relying on carpooling with friends).

For drivers, the current situation is arguably unsustainable. Many are burning through personal savings or vehicle value (via wear-and-tear) just to stay on the road. The more conscientious drivers feel demoralized – one Lagos driver, Michael, told us he prides himself on keeping his 2011 Toyota clean and cool for riders, but “with what I take home after buying fuel, I can barely service the car. I’m one repair away from calling it quits.” If the platforms continue to ignore the pleas of drivers for fairer economics (like lower commission or fuel subsidies) and of riders for better service, they risk a collapse in quality as the decent operators exit and only the most desperate remain.

Uber Nigeria’s official stance is that they are continually improving and valuing feedback. Bolt and inDrive similarly claim to adjust pricing and policies in response to market conditions – for example, inDrive says it has “guard rails” on its bidding system to prevent exploitatively low fares. But so far, these assurances have not tangibly improved the day-to-day reality for users. The coming months will be telling: the drivers’ union strike on May 1, 2025 will shine a spotlight on their plight, and it may force some concessions or at least public acknowledgment from the ride-hailing companies or authorities. Lagos State’s experiment with LagRide, now under new management, might pivot to a more driver-friendly model (rumours suggest a switch to a fixed-driver-salary system to replace the high weekly lease payments)​. If successful, that could set a template for balancing driver welfare with service quality.

Ultimately, achieving a better ride-hailing experience in Nigeria will require shared responsibility. The platforms must tighten enforcement of vehicle standards and support drivers in meeting them – perhaps reinstituting periodic car inspections and barring those that fail, even if it temporarily shrinks their driver pool. They may need to consider local adjustments to their business model, such as lower commissions or special surcharges during fuel price spikes, so that drivers aren’t pushed to cut corners. Regulators, for their part, should actively monitor and pressure the industry on safety and consumer protection – not just by issuing fees, but by publishing scorecards or warnings about companies that don’t respond to issues. And riders, while justified in their complaints, should continue to use the feedback tools at their disposal (rating bad trips, reporting serious problems) so that there is data to back up the demand for change.

In a country where reliable public transport is limited, ride-hailing fills a vital gap. The sight of Uber and Bolt stickers on car windshields navigating Lagos’s notorious traffic has become as common as the yellow danfo buses. The goal should be not to romanticize the early days or foreign examples, but to pragmatically address the “rough edges” that have emerged: the hot, bumpy rides; the mistrust between riders and drivers; and the economic imbalance that underlies it all. If Nigeria can steer its ride-hailing industry through these challenges, it would not only improve daily commutes for millions, it could also serve as a model for how global tech services can adapt to local realities without losing sight of quality and fairness.