Nigeria’s Tech Industry To Suffer Heavy Blow As Microsoft Set To Shut Down Operations

A report has suggested that Microsoft might be considering shutting its African Development Centre based in Lagos.

Naija News reports that if this happens it would mean that at least 200 staff would be out of jobs.

It would also affect the country’s technological landscape, potentially impacting job opportunities and innovation in the sector.

According to industry insiders who spoke to The Guardian newspaper on Tuesday, May 7, Microsoft informed staff on Monday, May 6, of the closure plans.

Affected employees are slated to receive salary payments up until June and will continue to be covered by health insurance.

Sources suggest that the Nigeria’s challenging economic conditions likely played a role in the situation.

The closure appears to affect only the ADC’s West Africa operations in Nigeria, not its East Africa facility in Nairobi, Kenya.

Microsoft launched its $100 million African Development Centers initiative in 2019, establishing facilities in both Lagos and Nairobi.

The Nigeria centre employed over 120 engineers upon launch in 2022, growing to more than 200 total staff members.

Another Multinational Giant Set To Leave Nigeria, Africa After 140 Years, Blames Naira Devaluation

Meanwhile, PZ Cussons has announced it’s intention to exit Africa’s business environment.

Speaking on Wednesday, April, 24, the company said it has begun a strategic review of its African businesses to exit Africa, partly due to economic challenges in Nigeria.

PZ Cussons explained that its sales in Nigeria plunged by 48% due to the naira devaluation and inflation.

The CEO of the company, Jonathan Myers, stressed the importance of looking towards the future while respecting the company’s past, stating that the review’s outcomes could include changes in ownership.

Myers said, “The macro-economic challenges and complexities associated with operating in Nigeria are significant, and there is much more to do to unlock the full potential of the business.

“As such, we have undertaken a strategic review of our brands and geographies and have embarked on plans to transform our portfolio, refocusing on where the business can be most competitive.”

The company’s CEO said that in addition to the challenges of the exposure in Nigeria, the group is too complex for its size, with financial and human resources spread too thin to generate returns.

Speaking further Myers stated that the company has received several approaches over the years, however, it is yet to indicate interest in selling its shares in the African consumer goods firm.