Reports have surfaced suggesting that Microsoft is contemplating the closure of its African Development Centre based in Lagos.
According to sources within the industry, who spoke to The Guardian newspaper on Tuesday, Microsoft has notified staff about the potential closure plans.
While details remain in the dark, affected employees are said to receive salary payments until June and will maintain health insurance coverage, as reported by the newspaper.
An unnamed source within Microsoft’s Lagos office neither confirmed nor denied the closure when approached by the newspaper, adding to the uncertainty surrounding the situation.
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Although the exact reasons behind this decision remain unclear, economic challenges in Nigeria are believed to have influenced Microsoft’s considerations.
It’s important to note that the closure is reportedly limited to the ADC’s West Africa operations in Nigeria and does not affect its East Africa facility in Nairobi, Kenya.
Microsoft launched its African Development Centers initiative in 2019 with a $100 million investment, establishing facilities in Lagos and Nairobi.
The Nigeria center, inaugurated in 2022, initially employed over 120 engineers and expanded to more than 200 staff members.
Gafar Lawal, the Managing Director of Microsoft ADC West Africa, stressed the abundance of talent in Africa, stating, “We intended to recruit 500 full-time engineers by the end of the year or by 2023. However, currently, we have exceeded 500. This is to tell you about the abundance of talents we have in Africa,” he said.
A Microsoft statement stated, “This also creates opportunities for engineers to do meaningful work from their home countries and be plugged into a global engineering and development organization.”