By Ken Afor
Global tech giant, Microsoft has reportedly shut down its African Development Centre (ADC) in Nigeria after a two-year stint, redirecting its focus to its facility and workforce in Kenya to advance its objectives in the African continent.
The closure of the centre located in Ikoyi, Lagos State, has resulted in massive job losses for its employees.
According to reports, the company decided to close the centre due to “organisational and workforce adjustments” as it “continues to prioritise and invest in strategic growth areas for its future and in support of its customers and partners.”
The closure comes amidst mounting inflation, which has created a challenging economic environment for both local and international businesses in the country.
It would be recalled that in March 2022, Microsoft launched its ADCs in Lagos, the commercial hub of Nigeria, and Nairobi in Kenya, with the aim of “training, equipping, and hiring engineering talents” from Nigeria to “contribute to the development of Microsoft products,” as stated by Gafar Lawal, the managing director of ADC West Africa.
The decision to close the Nigerian ADC has raised concerns about the nation’s tech ecosystem, particularly since Microsoft, a global tech giant, had in 2019 pledged to commit $100 million worth of investment within five years to enhance its two West African hubs.
The New Diplomat recalls that in August 2023, British pharmaceutical giant GlaxoSmithKline (GSK) also announced its departure from the Nigerian market, citing Nigeria’s economic challenges and a foreign currency crisis, which had adversely impacted its operations.
Also, in December of the same year, American consumer goods company Procter & Gamble (P&G) announced the closure of its manufacturing operations in Nigeria, shifting its focus solely to imports.
Procter & Gamble, known for brands such as Pampers diapers, Ariel detergent, and Oral-B toothpaste, cited currency issues and a challenging macroeconomic environment as reasons for its decision.
