The American technology giant, IBM has announced its exit from Nigeria, Ghana, and other key African markets, transferring its regional operations to MIBB, a subsidiary of the multinational IT conglomerate Midis Group.
The transition, set to take effect on April 1, 2025, marks a significant shift in IBM’s African strategy as it implements a new operating model across select countries.
Under the new arrangement, MIBB will assume responsibility for marketing and selling IBM’s products and services across 36 African nations. This move grants MIBB direct access to IBM’s portfolio, including software, hardware, cloud solutions, and consulting services.
IBM emphasized that the partnership aims to drive innovation and growth in the region, with MIBB taking over customer relationships and operational support, TechCabal reported.
IBM has been a cornerstone of Nigeria’s technology landscape for over five decades, providing critical infrastructure and consulting services to key industries such as banking, telecommunications, oil and gas, and government.
Its high-end storage and computing solutions were widely adopted by major Nigerian banks, including Zenith.
However, rising competition from companies like Dell and Huawei—both of which have made significant inroads into Nigeria’s banking sector—has contributed to IBM’s declining market share in the country.
IBM’s exit from West Africa comes amid broader financial challenges.
In 2024, the company reported an 8% drop in infrastructure sales and a 2% decline in consulting revenue, though overall revenue grew by 1% to $17.55 billion, driven by a 10% increase in software sales.
Despite these struggles, IBM posted a net income of $2.92 billion in the fourth quarter and projects at least 5% revenue growth in 2025, supported by an expected free cash flow of $13.5 billion.
While IBM’s departure signals the end of its direct presence in West Africa, the long-term effects on local businesses and government partnerships remain uncertain.
The transition to MIBB could introduce new opportunities for innovation and service continuity but may also pose challenges for businesses that have relied on IBM’s expertise.
