A recent report for the technology industry in Nigeria has indicated that Microsoft is considering the closure of its African Development Centre (ADC) based in Lagos.
This potential move has raised concerns about its implications for job opportunities and innovation within the country’s technological industry.
Speaking to the Guardian newspaper, industry insiders disclosed that Microsoft notified staff on Monday regarding its closure plans for the African Development Centre in Lagos.
While affected employees are expected to receive salary payments until June and remain covered by health insurance, an unnamed source within Microsoft’s Lagos office neither confirmed nor denied the closure when approached by the newspaper.
Although the precise reasons behind the decision remain unclear, sources suggest that the current challenging economic conditions in Nigeria are likely responsible for the move.
Notably, the closure appears to impact only the ADC’s operations in West Africa, specifically in Nigeria, and not its East Africa facility in Nairobi, Kenya.
Launched in 2019 as part of Microsoft’s $100 million African Development Centers initiative, the Nigeria centre initially employed over 120 engineers upon its inception in 2022. It later expanded to more than 200 staff members.
Gafar Lawal, Managing Director of Microsoft ADC West Africa, expressed optimism about the abundance of talent in Africa. He stated, “We intended to recruit 500 full-time engineers by the end of the year or by 2023. However, currently, we have exceeded 500. This is to tell you about the abundance of talents we have in Africa.”
The Lagos Centre was established to develop innovative technology solutions to tackle challenges across Africa and globally. A Microsoft statement highlighted the opportunity for engineers to engage in meaningful work from their home countries while being integrated into a global engineering and development organization.
As Nigeria’s tech industry braces for potential upheaval, stakeholders await further clarity on Microsoft’s decision and its implications for the country’s technological advancement.