Looming job loss in Nigeria as Microsoft set to close down African Development centre: summary

What we know

• Microsoft has announced the closure of its Africa Development Centre located in Nigeria, the continent's most populous nation, resulting in impending job losses, a spokesperson confirmed on Wednesday.
• The centre, situated in Lagos, Nigeria's commercial capital, was inaugurated in 2022 as part of Microsoft's strategic initiative to deliver advanced engineering solutions and foster innovation within the company, Reuters reports.
• Despite the closure of the development centre, Microsoft affirmed its commitment to maintaining operations in Nigeria, with a continued focus on prioritizing and investing in key growth areas.
• In December 2022, Microsoft President Brad Smith highlighted Africa as a burgeoning talent hub, contrasting with declining population growth trends elsewhere. At that time, Microsoft boasted a workforce of over 200 engineers in Lagos and more than 500 in Nairobi, Kenya, the Punch NG has reported.
• While the exact reasons for the decision remain unclear, the Punch indicates that Nigeria's difficult economic conditions could have influenced the outcome.

What they said

"Microsoft has decided to close the Africa Development Centre in Nigeria, and as a result, some of our employees based in Nigeria will be impacted. Organizational and workforce adjustments are a necessary and regular part of managing our business,” the Microsoft spokesperson said. At the launch of the $100 million facility, Gafar Lawal, Managing Director of Microsoft ADC West Africa, was quoted, “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.”