Ride-hailing services emerged as an essential segment of Nigeria’s transportation landscape in 2024, the Nigerian Customer Service Index (NCSI) has said.
NCSI said the Nigerian ride-hailing market generated approximately $1.3 billion in 2024, with projected revenue expected to reach $2.1 billion by 2028.
Urbanisation, smartphone penetration and the increasing demand for efficient transportation options are key drivers of the surge.
With users expected to hit 42.88 million, the market is ripe for innovation and competition focused on affordability, safety and convenience, ultimately reshaping the entire industry.
Despite its bright future, the sector faces several challenges, such as inconsistent internet connectivity, safety concerns, and regulatory hurdles, which are limiting factors that must be addressed to reach its full potential.
Additionally, socio-economic factors like inflation and a youthful population are further driving the demand for affordable, app-based mobility solutions.
According to NCSI, in 2024, Nigeria’s transportation sector made notable strides, with a focus on transitioning to sustainable mass transit systems and the growing adoption of clean energy vehicles.
The report stated that the Nigerian government worked on modernising its public transportation network, aiming to develop a sustainable and efficient system for urban areas.
Efforts to support electric vehicles (EVs) were also prioritised with initiatives aimed at making EVs more affordable and accessible to the general public, supporting the country’s transition to a greener future, it said.
However, the report noted that challenges persisted in the sector.
It listed such challenges to include poor infrastructure, traffic congestion and insufficient investment in public transit systems.
It stated that Nigeria’s road network was still plagued by dilapidated roads, affecting the overall efficiency of transport systems. Moreover, the rising cost of vehicle ownership, alongside limited charging infrastructure for electric vehicles, poses barriers to the widespread adoption of clean energy options.
Looking ahead, the report noted that Nigeria’s transportation sector aims to address these infrastructure and regulatory challenges with plans to enhance urban mobility and integrate sustainable practices.
Investments in clean transport options and infrastructure development will play a critical role in the sector’s long-term growth and success.The NCSI also serves as a national benchmark for evaluating customer perceptions of the quality of products and services across the country.
The index captures insights from both Nigerian citizens and non-Nigerians residing in Nigeria, offering a comprehensive view of customer satisfaction and service delivery.
In its latest edition, NCSI 2024 assesses customer experiences, the factors influencing satisfaction, and their broader impact across key economic sectors.
Compiled by the West African Association of Customer Service Professionals (WAACSP) in collaboration with an independent research and consulting firm, the report provides a cross-sectoral analysis of customer experiences.
By establishing a standardised framework for evaluating service quality, the NCSI continues to serve as a valuable tool for measuring and improving customer satisfaction across various industries.
