Metro Africa Xpress (MAX), a Nigerian mobility financing startup, has laid off approximately 150 employees, as it pushes focus entirely to financing electric vehicles (EVs) in Nigeria, Ghana, and Cameroon
Accounting for 30% of its workforce, the layoff left some employees in shock as the news was highly unexpected. One former staff member revealed that their termination email referenced performance reviews, leading them to believe it was an individual issue until later realising it was a mass layoff. “It wasn’t until later that I realized it was a mass layoff,” the employee said.
The layoffs took immediate effect, and no monetary severance packages were provided.
MAX, which previously offered both electric and internal combustion engine (ICE) vehicles under a rent-to-own model, is now concentrating solely on EVs. A spokesperson for the company explained that the layoffs were a necessary step in this transition.
“This decision was not made lightly,” MAX stated in an email, acknowledging the contributions of affected employees and outlining support measures such as health insurance and job placement assistance. However, the company declined to confirm the exact number of affected staff.
Per TechCabal, MAX has introduced various cost-saving measures, including reducing energy consumption and limiting generator usage in its offices. A senior employee familiar with the matter disclosed that these measures align with MAX’s goal of minimising its carbon footprint.
The company confirmed the adjustments, stating, “We are investing significantly in energy sources to power our business locations and battery swap stations.”
MAX has been steadily expanding its presence in the EV space. In November 2024, the company partnered with PASH Global, an impact investment firm, to develop a $10 million network of EV charging stations across Nigeria’s urban centres.
While MAX once manufactured its own electric motorcycles, it now procures them from original equipment manufacturers (OEMs) such as Spiro. A highly placed source within the company noted that each vehicle costs around $900, an investment given MAX’s target of financing 120,000 vehicles.
The transition to an all-EV fleet requires high capital. Since 2019, MAX has raised around $63 million through a mix of equity and debt financing. In 2020, the company launched a ₦10 billion multicurrency bond programme and secured a ₦400 million one-year fixed-rate note.
Its most recently disclosed funding, a $24 million private placement in 2022, allowed it to raise capital from select investors without public solicitation.
MAX’s restructuring comes at a time of heightened challenges in Nigeria’s transportation sector. High fuel prices and inflation are stressing commuters, while the cost of vehicle ownership has surged. Leaders have urged the federal government to prioritise transport infrastructure improvements and job creation.
Ismaila Yusuf Atus, managing director of XpressRide, noted the need for “affordable and safe transportation options” and policies that encourage the adoption of fuel-efficient vehicles suited to Nigerian roads.
Meanwhile, other companies are doing great in the EV market. Metropolitan Electric Limited, for instance, is promoting sustainable mobility by providing corporate EV fleets, public transport renewal services, charging infrastructure, and maintenance solutions.
This growing industry focus on green transport shows the initiatives aimed at reducing environmental impact while addressing economic challenges.
Labour issues are bringing challenges to Nigeria’s transport sector. In the past, worker strikes over unpaid salaries have disrupted services, pointing to the financial stresses within the industry.
In September 2016, for example, Abuja mass transit workers staged a strike over five months of unpaid wages, leaving many commuters stranded. These incidents highlight the need for sustainable business models, particularly as companies like MAX scale through operational changes.
