The company stated its intention to maintain operations in Nigeria, reaffirming its commitment to prioritise and invest in strategic growth areas within the country.

The multinational technology giant Microsoft, headquartered in the United States, has reportedly contemplated the closure of one of its operations in Nigeria, namely the African Development Centre situated in Lagos.

Microsoft's ADC is located in Ikoyi, an affluent area of Lagos, which serves as the commercial hub of Nigeria, the largest economy in Africa.

Without providing any explanation, Microsoft allegedly informed its staff on Monday about the potential closure of its African Development Centre in Lagos.

According to sources cited by The Guardian Newspaper, affected employees are said to receive salary payments until June and will continue to be covered by health insurance.

While the precise reasons for the decision remain unclear, sources suggest that Nigeria's deteriorating economic conditions may have played a role in reaching this decision.

Reportedly, the closure seems to affect only the ADC's West Africa operations in Nigeria, with no impact on its East Africa facility in Nairobi, Kenya.

An anonymous source within Microsoft's Lagos office neither confirmed nor denied the closure when approached by the newspaper.

Microsoft launched its $100 million African Development Centers initiative in 2019, establishing facilities in both Lagos and Nairobi.

When it was unveiled in 2022, Nigeria's Microsoft ADC hired more than 120 engineers, eventually expanding to over 200 staff members.

In 2019, the company aimed to recruit 100 full-time engineers by the year's end and 500 engineers by the end of 2023. Microsoft is banking on African innovation in fields such as fintech, agritech, and off-grid energy, aiming to leverage them.

The ADC is envisioned to be unlike any other existing investment on the continent, enabling better customer engagement, local development, and global scalability.

Phil Spencer, Microsoft's executive vice president, remarked in Nairobi, "Beyond that, it’s an opportunity to engage further with African partners, academia, governments, and developers – driving impact and innovation in sectors important to Africa."