In a move that could impact over 200 jobs, Microsoft is reportedly closing its African Development Centre (ADC) based in Lagos, Nigeria, casting a shadow over the region’s tech sector.
Sources close to the industry disclosed this development to The Guardian on Tuesday, although no official confirmation has yet been provided by Microsoft.
The decision was allegedly communicated to employees on Monday, signaling an uncertain future for those working at the centre. Reports suggest affected staff may receive salary payments until June along with continued healthcare coverage.
When contacted for comments, a Microsoft Lagos office source neither confirmed nor denied the closure, stating, “I cannot say anything on that for now. Thank you.”
While specifics regarding the closure remain unclear, insiders point to economic challenges in Nigeria as a potential factor.
Notably, the African Development Centre in East Africa, located in Nairobi, Kenya, is reportedly unaffected by the closure, highlighting the specific impact on Nigeria’s tech landscape.
The ADC was inaugurated in Nigeria in 2022 as part of Microsoft’s broader $100 million investment in two African development centres, the other being in Nairobi. Since its inception, the Lagos centre has reportedly hired over 120 engineers and more than 200 employees.
At its launch, Managing Director of Microsoft ADC, West Africa, Gafar Lawal, emphasized the talent pool 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.”
Inaugurated by former Minister of Communications and Digital Economy, Prof. Isah Pantami, and Lagos State Governor, Babajide Sanwo-Olu, the ADC aimed to foster tech solutions addressing local and global challenges.
The closure of the ADC facility in Lagos also affects the Microsoft Garage, a hub for scaling innovation in the tech ecosystem.
