Microsoft to Close Nigerian Center, Putting 200 Jobs at Risk
Microsoft is reportedly contemplating the closure of its African Development Centre (ADC) located in Lagos, Nigeria, marking a potential setback for the nations growing tech industry.
According to reports, industry insiders disclosed to TechDigest on Tuesday that Microsoft had informed staff about the closure plans as discussions unfolded.
Although Microsoft has not officially confirmed the decision, indications from sources within the Lagos office suggest that the closure could be imminent.
Despite uncertainties surrounding the motives behind the move, economic challenges in Nigeria are believed to have influenced the decision-making process.
The closure of the ADC in Lagos would not only impact job opportunities but also have far-reaching implications for technological innovation within the region.
The centre, which was established as part of Microsofts $100 million African Development Centers initiative launched in 2019, aimed to harness the abundant talent in Africa to develop innovative solutions for local and global challenges.
Since its inception, the Lagos centre has been instrumental in fostering technological advancements, employing over 120 engineers initially and surpassing 200 staff members as of recent records. Gafar Lawal, Managing Director of Microsoft ADC West Africa, had previously expressed optimism about the abundance of talent in Africa and the centres potential to recruit 500 full-time engineers by 2023.
While the closure appears to impact only the West Africa operations in Nigeria, it raises concerns about the future of tech hubs across the continent.
However, Microsofts East Africa facility in Nairobi, Kenya, seems unaffected by the decision, underscoring potential shifts in the companys strategic focus.
As discussions unfold and uncertainty looms over the fate of the Lagos centre, affected employees are slated to receive salary payments until June and will continue to be covered by health insurance, according to reports. Nevertheless, the potential closure underscores the challenges faced by tech companies operating in Nigerias dynamic yet complex economic landscape.
