There are reported indications that the West African operation of Microsoft African Development Centre, situated in Lagos, Nigeria, maybe on the brink of closure.
Industry insiders disclosed this development to The Guardian on Tuesday, although Microsoft has not issued an official statement regarding the matter.
According to sources familiar with the situation, Microsoft’s management reportedly informed staff of the unexpected development on Monday. Affected employees may receive their salaries until June and continue to have access to their Health Maintenance Organizations.
There has been no official response from Microsoft regarding the winding down of the hub.
While the precise reason for the potential closure of the ADC remains unclear, industry sources speculate it could be linked to the current economic challenges facing the country. However, it was clarified that the ADC in East Africa, located in Nairobi, Kenya, remains unaffected, with the closure impacting only the Nigerian operation.
Launched in Nigeria in 2022 as part of Microsoft’s $100 million investment for two development centers in Africa, the ADC aimed to harness local talent to develop tech solutions addressing both African and global issues. Since its inception in 2019, the ADC reportedly hired 120 engineers and over 200 employees in Nigeria.
During its launch in 2022, Gafar Lawal, Managing Director of Microsoft ADC, West Africa, expressed the center’s ambition to recruit 500 full-time engineers by the end of 2023. However, the center had already surpassed this target, underscoring the abundance of talent in Africa.
Commissioned by former Minister of Communications and Digital Economy, Prof. Isah Pantami, and Lagos State Governor, Babajide Sanwo-Olu, the ADC aimed to foster innovation and create solutions for local and global challenges.
Microsoft emphasized its commitment to recruiting exceptional engineering talent across the continent to build innovative solutions with global impact, providing opportunities for engineers to contribute meaningfully from their home countries.
The ADC facility in Lagos also hosted the Microsoft Garage, which aimed to boost innovation in the tech ecosystem. Microsoft’s expanded presence in Africa aimed to empower partners and customers in sectors crucial to the continent’s development, such as FinTech, AgriTech, and OffGrid energy.
