ADC: Microsoft’s Lagos Tech Hub Faces Closure

Bukola Olanrewaju May 8, 2024 TECHNOLOGY Leave a comment

Microsoft’s ambitious plan for fostering African tech talent hit a snag this week, with reports indicating a potential closure of its Lagos-based African Development Centre (ADC).

Launched in 2022 with a hefty $100 million investment, the Lagos ADC aimed to recruit hundreds of engineers and spearhead innovation in sectors like fintech, agritech, and off-grid energy.

The news came as a shock to employees and Nigeria’s tech community. Staff were reportedly informed of the development on May 6th, with sources suggesting they might receive salaries until June and

While the precise motives behind the decision remain ambiguous, sources suggest Nigeria’s challenging economic conditions likely played a role.

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During its inauguration in 2022, the Lagos ADC boasted over 200 staff, including a core team of 120 engineers, with plans for further expansion.

At the time, Gafar Lawal, Managing Director of Microsoft ADC West Africa, said as quoted by The Guardian, “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.”

The Lagos Centre was inaugurated to develop innovative technology solutions to address challenges across Africa and globally.

The closure has sparked anxiety among staff at the Nairobi ADC, Kenya. They are understandably seeking clarity about their own positions. Speculation is rife that the Nairobi center, despite its recent relocation to a state-of-the-art facility, might face similar challenges.

Microsoft has yet to officially comment on the reported closure of the Lagos ADC. The reasons behind this potential move remain unclear.

While the East African operations, particularly the Nairobi ADC, appear unaffected for now, the news creates uncertainty. The Nairobi facility, with its over 450 employees and entities like the Microsoft Garage and the Microsoft Research Institute (MARI), is considered a cornerstone of the company’s commitment to Africa. It embodies Microsoft’s strategy of deep integration with local tech ecosystems and academic institutions to develop solutions for local and global challenges.

The potential closure of the Lagos ADC disrupts this vision, raising questions about Microsoft’s long-term plans for nurturing African tech talent. The tech community awaits further developments with a mix of concern and hope.