Microsoft African Development Centre (ADC) may shut down its West Africa operation, located in Lagos, Nigeria, reports have indicated.
Citing a source familiar with the matter, Guardian had reported that the management of Microsoft on Monday informed the staff of the sudden development, but the tech giant is yet to issue an official statement to this effect.
Quoting information gathered, the report says the affected staff might be paid their salaries till June and their HMOs.
“I cannot say anything on that for now. Thank you”, a source in Microsoft who neither confirmed nor denied the report stated.
While the immediate cause of the shutting down of the ADC remains unknown, it might not be unconnected with current economic situation in Nigeria.
The industry source, however, said that ADC in East Africa, situated in Nairobi, Kenya is not affected, “only that of Nigeria.”
The ADC was launched in Nigeria in 2022 after it was set up in 2019. It formed part of Microsoft’s $100 million investment for two development centres in Africa, with the other located in Nairobi.
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Since it’s launch, ADC was reported to have hired 120 engineers and more than 200 total employees in Nigeria.
At the launch in 2022, managing Director, Microsoft ADC, West Africa, Gafar Lawal, said, “We intended to recruit 500 full-time engineers by the end of the year or by 2023.”
The ADC was commissioned by former Minister of Communications and Digital Economy, Prof. Isah Pantami and Lagos State Governor, Babajide Sanwo-Olu.
“We desire to recruit exceptional engineering talent across the continent that will build innovative solutions for global impact. This also creates opportunities for engineers to do meaningful work from their home countries and be plugged into a global engineering and development organisation”, Microsoft had said in a statement after the launch.
Heritage Times HT reports that several foreign companies have left the country in recent times, arising from difficult economic environment.
Last year, American multinational consumer goods company, Procter & Gamble, announced plans to terminate its on-ground operations in Nigeria, transforming the country into an import-focused market.
Other multinational firms that have also left Nigeria in 2023 include Unilever Nig (home care and skin cleansing division), GlaxoSmithKline, Sanofi and Bolt Foods.
The companies, in separate statements, alluded the painful decision to leave Nigeria to their plan to pursue an import-based model that would ensure business sustainability.
