Microsoft, the multinational technology giant headquartered in the United States, has reportedly deliberated on the closure of one of its operations in Nigeria, namely the African Development Centre situated in Lagos. The Microsoft ADC is situated in Ikoyi, an upscale area of Lagos, which serves as the commercial hub of Nigeria, the largest economy in Africa.

On Monday, Microsoft informed its staff about the potential shutdown of operations at its African Development Centre in Lagos, without providing any specific reasons for the decision.

According to insider information obtained by The Guardian Newspaper, affected employees will receive salary payments until June and will continue to be covered by health insurance.

While the exact motives behind the decision remain unclear, sources suggest that Nigeria’s deteriorating economic conditions may have played a role in the determination.

The closure is reported to impact only the ADC’s West Africa operations in Nigeria, with no effect on its East Africa facility in Nairobi, Kenya. An unnamed 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 the Nigeria-based Microsoft ADC was unveiled in 2022, it hired over 120 engineers, with its staff count growing to more than 200 members in total.