In a move that sent shockwaves through Nigerian tech industry, Microsoft has notified employees about potential closure of its Africa Development Center in its West Africa operations Lagos, Nigeria.
While Microsoft has not issued an official statement, the authenticity of this news has been corroborated by NTR, and our source has affirmed its accuracy.
The Nigeria centre employed over 120 engineers upon launch in 2022, growing to more than 200 total staff. Consequently, approximately 200 jobs are at risk.
Although the exact reasons for the decision remain unclear, sources indicate that Nigeria’s difficult economic challenges likely influenced it. Alternatively, it is speculated that the decision may also be attributed to intense competition in the market.
Microsoft launched its $100 million African Development Centers initiative in 2019, establishing facilities in both Lagos and Nairobi. However, the ADC situated in East Africa situated in Nairobi, Kenya is not affected only that of Nigeria.
At first glance, the decision might seem surprising, given Nigeria’s status as one of Africa’s largest economies and a growing hub for technology and innovation. Lagos, in particular, has emerged as a vibrant tech ecosystem, attracting both local startups and international tech giants seeking to tap into the region’s potential. Microsoft’s presence in Lagos was seen as a testament to the city’s growing importance as a tech hub.
However, the closure of Microsoft’s tech center in Lagos also underscores the intensifying competition within the tech industry in Africa. Over the years, Lagos has witnessed a proliferation of tech startups and an influx of global tech companies seeking to gain a foothold in the market. This heightened competition has led to increased pressure on established players like Microsoft to innovate, adapt, and differentiate themselves in order to remain competitive.
While Microsoft’s decision to close its tech center in Lagos may have been driven by a combination of economic factors and competitive pressures, its implications extend beyond the confines of the company itself. It serves as a reminder of the complex interplay between global economic forces and local market dynamics shaping the future of technology in Africa.
