Reportedly, the affected employees will receive salary payments until June and will still be covered by health insurance. While the exact reasons for the decision remain unclear, sources suggest that Nigeria’s challenging economic conditions may have influenced it.
Microsoft, a major American multinational technology company, is contemplating the closure of its African Development Centre located in Lagos.
According to reports, the closure seems to impact only the ADC’s operations in West Africa, specifically in Nigeria, and not its facility in East Africa situated in Nairobi, Kenya. An unnamed source from Microsoft’s Lagos office neither confirmed nor denied the closure when approached by the newspaper.
Microsoft launched its $100 million African Development Centers initiative in 2019, establishing facilities in both Lagos and Nairobi.
The Nigerian center employed over 120 engineers when it was inaugurated in 2022, and the workforce grew to more than 200 staff members in total.
In 2019, the company aimed to hire 100 full-time engineers by the end of the year and 500 engineers by the end of 2023. Microsoft is banking on African innovation in sectors such as fintech, agritech, and off-grid energy, and hopes to tap into these advancements.
“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,” Microsoft executive vice president Phil Spencer said in Nairobi.
“Beyond that, it’s an opportunity to engage further with African partners, academia, governments and developers – driving impact and innovation in sectors important to Africa.”
