Microsoft’s decision to lay off some workers while shutting down its Africa Development Centre in Lagos has turned into an online high-decibel slanging match, particularly between government supporters and the opposition.
The American tech giant added that it would stop paying the employees their emoluments by June, even as it promised to ensure access to health insurance.
A statement by the company’s spokesperson partly read, “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.” The tech company added that it would continue to operate in Nigeria and prioritise and invest in strategic growth areas.
Experts worried that Microsoft’s abrupt closure of the Lagos-based Africa Development Centre would not only result in job losses for up to a hundred Nigerian engineers and developers, but could also cripple the momentum of Nigeria’s burgeoning tech scene, jeopardizing job creation and innovation.
However, while the powerful tech company’s actual reason for closing down one of its departments in Nigeria has remained vague, some media houses and opposition politicians have latched on to it, twisting facts while misleading the public. In fact, some commentators even suggested that the closure was influenced by the “bad policies” of the ruling party, APC.
Presidency Reacts
Temitope Ajayi, a senior special assistant to President Bola Tinubu on media and publicity on Thursday, debunked the insinuation that Microsoft shut down the Africa Development Centre because of the economic policies of the ruling party, which some say make the country unconducive for businesses. He said the American tech giant is rather “re-aligning roles” within its business.
In addition, a former Presidential aide, Reno Omokri, has equally said that Microsoft’s closure of the Africa Development Centre in Lagos was not because of the economic downtown in Nigeria or “challenges and broader issues plaguing the Nigerian economy”, as some people have claimed, instead a company-wide decision affecting staff numbers in the United States, Europe, and Asia.
Buttressing his claim, Reno said, “For example, four months ago, Microsoft laid off 1,900 people in the U.S. Before that, they laid off 10,000 employees due to falling revenues. In addition to these 12,000 job layoffs in the U.S., Microsoft also laid off staff in multiple European countries, including the U.K., where the firm has 6000 staff and has laid off 6%, and Ireland, where 70 staff were laid off. In total, Microsoft has laid off 18,000 employees worldwide in the last one year. And just three days ago, they shut down multiple locations in America, Europe and Asia.”
Beyond the Headlines:
Experts urge caution against politicizing the situation. They believe Microsoft’s decision, while concerning, shouldn’t overshadow the vast potential of Nigeria’s tech sector.
“Microsoft is a global company, and its decisions are likely based on internal restructuring plans, not local politics,” argues Dr. Kayode Alakija, an economist. “However, Nigeria can certainly improve its business environment to attract more tech investment.” he added.
Many have expressed confidence in the Honorable Minister of Communications, Innovation and Digital Economy, Dr .Bosun Tijani to chart the way forward as his laudable plans for the tech ecosystem have been greatly lauded.
