Five Tech Companies Scale Back or Exit Nigeria in 2026 as Business Costs Rise

Nigeria’s technology industry is facing fresh challenges as five prominent businesses have exited the country, shut down services or withdrawn major business operations in the first 10 months of 2026.

The developments involving Uber, Moove, Gigbanc, Chimoney and Onafriq’s Baxi agent-banking business have raised concerns about the difficulties technology companies face while operating in Nigeria.

A report published by BusinessDay on Wednesday, October 21, 2026, highlighted how rising operating costs, currency pressures and funding difficulties are affecting businesses across the country’s technology sector.

Although the five companies did not all shut down their entire businesses, their decisions reflect the financial pressure facing different parts of the industry.

Uber and Moove ended their Nigerian operations, while Gigbanc discontinued its services. Chimoney stopped accepting new transactions before being acquired, and Onafriq began withdrawing from its Baxi agent-banking business while retaining other operations in Nigeria.

These developments highlight a difficult reality for Nigeria’s technology industry. Despite the country’s large population and growing demand for digital services, companies still need to find sustainable ways to cover their expenses and generate profits.

One major challenge is the depreciation of the naira, which increases the local cost of technology infrastructure and other services priced in foreign currencies. Inflation also raises expenses such as salaries, transportation, electricity and office operations.

At the same time, many Nigerian consumers are dealing with reduced purchasing power, making it difficult for businesses to increase their prices without losing customers.

Funding has also become an important concern, particularly for startups that depend on investors to finance expansion and daily operations while they work towards profitability.

The withdrawal of these businesses does not necessarily mean Nigeria’s technology sector is collapsing. Rather, it shows that companies are reassessing their operations and deciding which services they can continue to provide profitably.

For Nigerian entrepreneurs, the developments offer an important lesson: having a promising business idea or entering a large market is not enough to guarantee success. Businesses must also control costs, understand customer needs and build revenue models that can survive changing economic conditions.

As Nigeria continues to promote digital innovation and attract investment, the ability of technology companies to operate sustainably will remain crucial to job creation, competition and the growth of the digital economy.

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