Microsoft, the United States-based multinational technology giant, is considering closing one of its operations in Nigeria, the African Development Centre located in Lagos.
The African Development Centre (ADC) is situated in Ikoyi, the commercial headquarters of Nigeria and Africa’s largest economy. However, Microsoft announced to its staff members on Monday its intention to shut down operations at the ADC in Lagos.
While the exact reasons for this decision remain undisclosed, it is speculated that Nigeria’s deteriorating economic conditions may have played a role in this determination.
Affected employees have been informed that they will receive salary payments until June and will continue to be covered by health insurance, according to an insider source.
It appears that the closure will specifically impact the ADC’s West Africa operations in Nigeria, while its East Africa facility in Nairobi, Kenya, will remain unaffected.
Microsoft’s ADC initiative was launched in 2019 with a $100 million investment, establishing facilities in both Lagos and Nairobi. When the Nigerian ADC was unveiled in 2022, it initially hired over 120 engineers, later growing to more than 200 staff members.
In 2019, Microsoft aimed to recruit 100 full-time engineers by the end of the year and 500 engineers by the end of 2023. The company has been focusing on African innovation in areas such as fintech, agritech, and off-grid energy, hoping to leverage these sectors for global impact.
“The ADC will be unlike any other existing investment on the continent. It will help us better listen to our customers, develop locally, and scale for global impact,” said Microsoft Executive Vice President Phil Spencer during the launch in Nairobi.