Microsoft's Decision to Close African Development Centre in Lagos Sparks Concerns

The Nigerian technology community finds itself in a state of shock and dismay following Microsoft’s surprise announcement of its intention to shut down its African Development Centre (ADC) in Lagos. This unforeseen move has left employees stunned, as management broke the news to them on Monday, May 6th.

Sources within Microsoft ADC Nigeria reveal that affected employees may receive their salaries until June and maintain their health insurance coverage. However, specific details regarding the closure and the fate of the employees remain shrouded in uncertainty.

The establishment of the Microsoft ADC in Lagos was part of a significant $100 million initiative launched in 2022, with the aim of nurturing local tech talent and driving innovation. The centre was envisioned as a hub for recruiting hundreds of engineers to develop cutting-edge solutions across various sectors, including fintech, agritech, and off-grid energy.

Initially, the Lagos ADC had a workforce of over 200 staff members, including 120 engineers, with ambitious plans for further expansion. However, the recent decision to shutter this facility has sent ripples of concern throughout the broader Microsoft ADC network across Africa.

In Nairobi, Kenya, where Microsoft operates another ADC, employees are reportedly anxious and seeking clarity regarding the future of their positions. Speculation surrounding the closure of the Lagos centre has risen fears that the Nairobi facility might also face challenges, despite its recent relocation to a new, state-of-the-art facility.

Microsoft has yet to officially comment on reports of the ADC Lagos closure or provide insights into the rationale behind this decision. The potential closure does not seem to directly impact Microsoft’s operations in East Africa, particularly the ADC facility in Nairobi, which remains a cornerstone of the company’s commitment to developing technology solutions for local and global challenges.

The Nairobi ADC, now situated at the prestigious Dunhill Towers along Waiyaki Way, employs over 450 full-time staff and houses entities like the Microsoft Garage and the Microsoft Research Institute (MARI). This centre is considered a vital component of Microsoft’s strategy to deeply integrate with local tech ecosystems and academic institutions, reflecting the company’s vision of tailoring its solutions to address specific regional needs.