Microsoft to shutdown its Innovation Centre In Lagos state
Microsoft’s African Development Centre (ADC) in Lagos, Nigeria, is facing closure, putting over 200 jobs at risk. Sources familiar with the matter revealed to The Guardian on Tuesday that Microsoft management had informed staff of the impending shutdown.
While no official statement has been released by Microsoft, affected employees may receive salaries until June and retain their health insurance.
A source within Microsoft’s Lagos office neither confirmed nor denied the news when contacted. “I cannot say anything on that for now. Thank you,” the source stated.
Reasons Behind the Closure
The exact reason for the closure remains unclear, but industry insiders suggest it could be linked to Nigeria’s current economic conditions. However, the ADC in East Africa, based in Nairobi, Kenya, reportedly remains unaffected.
Established in 2022 as part of Microsoft’s $100 million investment in Africa, the ADC aimed to foster tech solutions addressing local and global challenges.
Gafar Lawal, Managing Director of Microsoft ADC, West Africa, expressed optimism during the launch: “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.”
Impact and Fallout
Since its inception, the ADC reportedly employed 120 engineers and over 200 total staff in Nigeria. Despite Microsoft’s commitment to African talent and innovation, the potential closure underscores the challenges facing tech development in Nigeria amidst economic uncertainties.
Microsoft’s expanded presence in Africa aimed to empower partners and customers, particularly in sectors such as FinTech, AgriTech, and OffGrid energy. However, the fate of the ADC highlights the risks and uncertainties associated with operating in the Nigerian market.
Community Reactions
News of Microsoft’s potential departure has sparked concern and discussions about the wider implications for Nigeria’s economy. The ripple effects of job losses extend beyond the immediate employees, impacting printing presses, HMOs, brand communication firms, audit firms, and stationery vendors.
Conclusion
While Microsoft’s commitment to African talent and innovation remains evident, the potential closure of its innovation centre in Lagos highlights the challenges and complexities of doing business in Nigeria’s volatile economic landscape.