Microsoft, the US-based tech giant, has announced the potential shutdown of its African Development Centre (ADC) in Lagos, putting 200 jobs in jeopardy.
Located in the upscale Ikoyi area of Lagos, Nigeria’s commercial capital, the ADC faces an uncertain future as Microsoft informed staff of the decision on Monday.
While the exact reasons for the closure remain undisclosed, speculation points to Nigeria’s challenging economic landscape as a contributing factor.
The closure seems to impact only the West Africa operations in Nigeria, with the East Africa facility in Nairobi, Kenya, unaffected.
Despite the uncertainty, affected employees are assured of salary payments until June and continued health insurance coverage.
Launched in 2019 with a $100 million investment, Microsoft’s ADC initiative aimed to foster innovation in Africa, particularly in sectors like fintech, agritech, and off-grid energy.
Although the Lagos centre initially thrived, hiring over 120 engineers since its inception in 2022, the recent decision marks a setback in Microsoft’s African expansion plans.
Microsoft’s executive vice president, Phil Spencer, said the ADC’s role in driving local development and global impact, underscoring its importance in engaging with African partners, academia, and governments.
