Microsoft Plans To Shut Innovation Centre in Lagos Due to Nigeria’s Economic Situation

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Microsoft’s African Development Centre (ADC) in Lagos, Nigeria, faces closure amid indications of economic challenges in the country. Sources familiar with the matter disclosed this to The Guardian on Tuesday, revealing that Microsoft management had informed staff of the impending development.

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.

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. It was inaugurated by former Minister of Communications and Digital Economy, Prof. Isah Pantami, and Lagos State Governor, Babajide Sanwo-Olu.

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.”

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Since its inception, the ADC reportedly employed 120 engineers and over 200 total staff in Nigeria. Microsoft emphasized its commitment to tapping into Africa’s engineering talent and fostering global impact through innovative solutions.

The ADC facility in Lagos also housed the Microsoft Garage, aimed at scaling innovation in the tech ecosystem. Microsoft’s expanded presence in Africa aimed to empower partners and customers, particularly in sectors such as FinTech, AgriTech, and OffGrid energy.

Despite the potential closure of the Lagos centre, Microsoft’s commitment to African talent and innovation remains evident. However, the fate of the ADC underscores the challenges facing tech development in Nigeria amidst economic uncertainties.#centre