Reports indicate that Microsoft is thinking about shutting down its African Development Centre located in Lagos, which would be a major blow to Nigeria's growing tech industry.
If this closure is confirmed, it could have a big effect on the country's technology scene, potentially affecting job options and creativity in the field.
According to insiders who talked to The Guardian newspaper, Microsoft notified its employees about the closure plans on Monday.
As per reports from the newspaper, affected workers will receive their salaries until June and will still have health insurance.
However, a source within Microsoft’s Lagos office neither confirmed nor denied the closure when approached by the newspaper.
While the exact reasons behind the decision are unclear, sources suggest that Nigeria’s challenging economic conditions likely played a part.
The closure seems to only impact the ADC’s West Africa operations in Nigeria, not its East Africa facility in Nairobi, Kenya.
In 2019, Microsoft launched its $100 million African Development Centers initiative, setting up centers in both Lagos and Nairobi.
The Nigeria center had over 120 engineers at its launch in 2022 and grew to more than 200 total staff members.
The Managing Director of Microsoft ADC West Africa, Gafar Lawal, mentioned to The Guardian, “We aimed to hire 500 full-time engineers by the end of the year or by 2023. However, at present, we have gone beyond 500. This demonstrates the wealth of talent we have in Africa.”
The Lagos Centre was established to create innovative technology solutions for challenges across Africa and worldwide.
A Microsoft statement said, “This also provides opportunities for engineers to do impactful work from their home countries and be connected to a global engineering and development organization.”