In a development that may deal a severe blow to Nigeria’s rapidly expanding tech industry, sources report that Microsoft is contemplating the shutdown of its African Development Centre in Lagos. The potential closure, if realized, would be a significant departure for a company that had established a strong presence in Nigeria’s technological landscape.
In an exclusive report by The Guardian newspaper, anonymous industry insiders revealed that Microsoft informed employees of its Lagos-based African Development Centre about its impending closure plans during a meeting on Monday.
Citing the report, the employees affected by this move are expected to receive their salary payments up to June, and will continue to be covered by their health insurance during this period.
Despite the claims by industry insiders, Microsoft’s Lagos office has declined to either confirm or deny the impending closure when approached by The Guardian. The ambiguity surrounding the motivations behind this decision leaves many in the tech industry to speculate on the possible causes, with some insiders hinting that Nigeria’s difficult economic conditions may have contributed to the decision.
Microsoft’s ambitious African Development Centers project, initiated in 2019 with a $100 million investment, aimed to establish facilities in Lagos and Nairobi. Upon its official opening in 2022, the Lagos centre employed more than 120 engineers, eventually expanding its workforce to exceed 200 employees.