Microsoft’s African Development Centre (ADC) in Lagos, Nigeria, is facing an uncertain future as the tech giant considers closing its operations in the city. The ADC, located in the upscale Ikoyi area, employs over 200 people, who were informed of the potential closure on Monday.
According to sources, the affected employees will receive salary payments until June and continue to be covered by health insurance. However, the exact reasons behind the decision remain unclear. Sources suggest that Nigeria’s economic challenges may have played a role in the decision.
The ADC was launched in 2022 as part of Microsoft’s $100 million investment in Africa. The initiative aimed to recruit 100 full-time engineers by the end of 2019 and 500 engineers by the end of 2023. The centre has been focused on developing innovative solutions in fintech, agritech, and off-grid energy.
Microsoft’s executive vice president, Phil Spencer, had highlighted the importance of the ADC in Nairobi, saying, “The ADC will be unlike any other existing investment on the continent. It will help us better listen to our customers, develop locally and scale for global impact.”
The potential closure of the Lagos centre appears to only affect the West Africa operations, with the East Africa facility in Nairobi, Kenya, unaffected. Microsoft’s decision has raised concerns about the impact on the local tech industry and the employees who may lose their jobs.