The removal of fuel subsidies in Nigeria, resulting in a significant increase in fuel prices, has negatively impacted ride-hailing drivers in the country. President Bola Tinubu initiated the policy change to alleviate the country's debt burden. However, it has led to a 163% rise in fuel prices, pushing many Nigerians, including ride-hailing drivers, into deeper poverty.

Drivers are struggling to cope with daily expenses, and the increased fuel prices have worsened their financial situation. Although the ride-hailing industry's growth may shrink due to the fuel price hike, it is not expected to be completely eliminated. The demand for ride-hailing services is likely to continue, albeit with some reduction.

Even before the subsidy removal, being an Uber or Bolt driver in Nigeria was not highly lucrative. Following the fuel hike, both Uber and Bolt raised their base fares, but drivers are demanding a 200% increase to match the rise in fuel prices. They also seek a 50% reduction in the commissions they pay to the ride-hailing platforms.

Uber and Bolt drivers in Nigeria staged a nationwide strike, which was later suspended after intervention from the Ministry of Labour and Employment. The platforms have adjusted fares to strike a balance between driver compensation and reasonable prices for passengers. Some Nigerians have already reduced their usage of ride-hailing apps due to the increase in fares.

There are concerns that drivers may opt to move their services offline to avoid paying commissions or explore alternative platforms that allow them to negotiate prices with passengers. However, striking the right balance between fare increases and passenger demand remains a challenge for ride-hailing companies. The outcome of the situation will significantly impact both drivers and the future of the industry in Nigeria.

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