Nigerian drivers union AUATON denies claims that it sold app drivers to SimpliRide for 5 billion Naira, calling it a false rumour.
The main official union for online app drivers in Nigeria, known as the Amalgamated Union of App based Transporters of Nigeria(AUATON), has come out to publicly clear its name over heavy claims that it secretly sold out driver welfare to a local ride hailing company called SimpliRide.
Official reports released on Friday, September 18, 2026, show that the drivers’ union flatly rejected rumors claiming it signed a long term agreement to force all app drivers in the country onto one single private app platform.
The rising controversy affects thousands of ride-hailing drivers, car owners, and passengers who use mobile phone apps to order rides across big cities like Lagos, Abuja, Port Harcourt, and Ibadan every single day.
Rumors spread rapidly across social media groups alleging that union leaders collected money from the owners of SimpliRide, a local ride app managed by Epevs Studio Nigeria Limited, to trap drivers in a 30 year contract and lock out other competing apps.
Giving the real facts behind the business agreement, union leaders explained that the N5 billion figure being talked about is not money paid to buy off drivers, but a heavy fine written into their contract to protect drivers.
The union revealed that if the ride-hailing company suddenly backs out or breaks its promises to give drivers better pay and healthcare, the company must pay a N5 billion penalty.
Leaders explained that this strong clause was added to stop big app owners from treating Nigerian drivers poorly or abandoning agreed welfare packages overnight.
Clearing up this heavy issue helps everyday app drivers understand that their union is working to build safe local alternatives rather than selling their rights to private companies.
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By creating clear rules with local app creators, drivers can get better daily earnings and cheaper commission charges while keeping the power to work on any ride app they choose.
Denying the heavy allegations made by disgruntled members, union spokesman Comrade Jossy Adaraniwon stated, “We categorically deny the fabricated claim that the future of the e-hailing industry has been sold or mortgaged to SimpliRide for 30 years at N5 billion . This is a deliberate distortion of a standard protection clause.”
Explaining how the heavy fine works to shield workers, the union added that “should either Party attempt to terminate this Agreement unilaterally or without cause deemed valid by a court of competent jurisdiction, the terminating Party shall be liable to pay a penalty of N5 billion to the non-terminating Party. This penalty is intended as a deterrent to early termination and to uphold the mutual commitment to the Agreement’s terms.”
Reassuring drivers across the nation to stay calm, union leaders advised, “We urge all app-based drivers across Nigeria to completely disregard this anti-welfare campaign. This sabotage is a desperate attempt to discourage you from embracing an ecosystem that frees you from the current exploitative multinational apps.”
This clear statement brings peace of mind to thousands of Nigerian app drivers as the digital ride business continues to grow across Africa.
As union leaders work with local tech companies to create better conditions, everyday drivers can focus on carrying passengers safely and earning money for their families without fear.
