Microsoft Shuts Nigeria Engineering Center Just Two Years After Opening

Microsoft Corporation has decided to close the engineering section of its Africa Development Center (ADC) in Lagos, just two years after its inception. 

Economic Instability Leads to Closure

The decision to shut down the ADC in Lagos adds to Nigeria’s broader economic challenges, including a persistent currency crisis, dollar shortages, and high inflation. 

These factors have impacted business growth and diminished consumer purchasing power, prompting companies like Procter & Gamble, GSK, and Bayer to overhaul their African strategies.

“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,” a Microsoft spokesperson said, per Bloomberg.

“Organizational and workforce adjustments are a necessary and regular part of managing our business.”

However, how many people would be impacted has yet to be made clear. 

Talent and Innovation at a Crossroad

At its launch in 2022, the Lagos ADC aimed to harness local expertise to develop solutions for African and global markets. 

The center was part of Microsoft’s $100 million investment to establish two such facilities on the continent. The other is in Nairobi, which remains operational.

The Lagos ADC not only hosted the Microsoft Garage but was also put off enhancing Microsoft’s presence in sectors crucial for Africa, such as FinTech, AgriTech, and OffGrid energy. 

The closure raises concerns about the future of tech talent in Nigeria and further implications for the tech ecosystem across Africa.

Online figure Dare Obasanjo wrote on X, “Last week, a Nigerian PM that I mentor mentioned layoffs happening at Microsoft in Nigeria but I didn’t expect them to shut down the entire development center and lay off everyone.”

“It’s not surprising given the layoffs across the industry but it is disappointing.”