In a development few anticipated, Uber has emerged as a significant economic player in Nigeria’s transport sector. According to a newly published impact study, the ride-hailing platform injected an estimated ₦34 billion into the national economy in 2023.
The report—commissioned by Uber and conducted by UK-based policy consultancy Public First—delves into how the platform has shaped urban mobility, driver earnings, and public safety across the country.
Lagos Summit: Rethinking Road Safety
At the Lagos Road Mobility Summit, co-hosted by Uber and the Lagos State Ministry of Transport under the theme “Reimagining an Inclusive Road Safety Strategy,” stakeholders from government, international organisations, and the private sector convened to discuss the future of Nigeria’s transport infrastructure.
Economic Gains or Corporate Messaging?
The report highlights that Uber riders benefited from a consumer surplus of ₦500 billion in 2023, thanks to time savings, reduced costs, and convenience.
Drivers earned ₦6.1 billion more than they would have through alternative employment, with average earnings 34% higher. Additionally, the freedom to set their own schedules was valued at ₦6.3 billion, with 88% of drivers citing improved work-life balance. Yet, some experts urge caution.
Since the data originates from a company-commissioned study, questions linger about its objectivity. A transport economist, speaking anonymously, noted, “We need to examine the assumptions. Are these figures net of operational costs? What benchmarks were used for alternative income sources?”
Safety and Gender Implications
Safety emerged as a dominant factor in Uber’s appeal. The study found that 97% of riders use the app primarily for safety, with 78% of women considering it the most secure way to travel at night. Moreover, 79% of respondents believe Uber helps curb drunk driving.
However, this raises broader concerns. Marisela Ponce de Leon Valdes, Senior Transport Specialist with the World Bank’s SSATP team, posed a critical question during the summit: “If Uber is perceived as the safest option, what does that imply about the rest of Nigeria’s public transport system?”
Nightlife and Tourism Impact
Uber’s influence extends into Nigeria’s nighttime economy, contributing ₦930 million and adding ₦5.4 billion in value to the tourism sector. Riders saved over 1.8 million hours in 2023—time that could be redirected toward personal or professional pursuits.
Still, urban planners warn against over-reliance on private mobility solutions. Olasunkanmi Ojowuro, Director of Transport Operations for Lagos State, emphasised the need to “balance innovation with sustainability,” cautioning that unchecked growth could exacerbate congestion and divert resources from public transit.
Collaboration Is Key
The summit’s panel—featuring representatives from Uber, LASTMA, FRSC, and other agencies—agreed that while tech-driven platforms like Uber can enhance safety and inclusivity, their success hinges on transparent partnerships and robust regulation.
Nigeria continues to grapple with road safety challenges and rapid urbanisation. Whether Uber’s model offers a viable blueprint for progress or reflects corporate storytelling remains to be seen. The data offers promise—but independent scrutiny will be essential to chart the way forward.