Microsoft, a major American technology multinational, is contemplating the shutdown of its African Development Centre in Lagos. The company notified employees about the closure plans on Monday.
It was reported that affected staff would continue to receive their salaries until June and maintain health insurance coverage. The reasons for the shutdown remain unclear, though Nigeria’s challenging economic situation may have influenced the decision.
The report indicates that the shutdown will only impact the West Africa operations in Nigeria, with the East Africa center in Nairobi, Kenya, remaining unaffected. When contacted, a source from Microsoft’s Lagos office neither confirmed nor denied the plans.
In 2019, Microsoft launched a $100 million initiative to establish African Development Centers in Lagos and Nairobi. The Nigeria center began with over 120 engineers in 2022 and has grown to more than 200 staff members.
The company’s goal was to hire 100 full-time engineers by the end of 2019 and 500 by the end of 2023, focusing on tapping into African innovation in sectors such as fintech, agritech, and off-grid energy.
“The ADC will be a unique investment on the continent. It will enhance our ability to listen to customers, innovate locally, and scale globally,” said Microsoft Executive Vice President Phil Spencer in Nairobi.
He added, “Furthermore, it represents a chance to deepen collaborations with African partners, academic institutions, governments, and developers, fostering innovation and impact in areas critical to Africa.”
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