Microsoft shrinks Nigerian office from six to two floors, moves more roles to Kenya

After laying off half of its workforce in Nigeria, Microsoft will reduce its office space at the Kings Tower building in Ikoyi from six floors to two, suggesting a scaleback in its Nigerian operations. One person with direct knowledge of Microsoft’s business said the global technology company may not renew its tenancy in 2025 when its current agreement runs out.

“Organizational and workforce adjustments are a necessary and regular part of managing our business,” Microsoft said in an emailed statement. “As we navigate these changes, Microsoft remains steadfast in our commitment to Africa’s growth and development.”

Microsoft’s sales team, largely unaffected by layoffs earlier in the year, will occupy the two floors for the next year. Layoffs in May and July 2024 affected most of the engineering team in Nigeria after the company closed its African Development Centre (ADC) in Lagos. One person with knowledge of the matter said engineers who stayed on the team have been asked to relocate to Kenya to join new projects.

“While we have made the difficult decision to close the Africa Development Centre in Nigeria, we want to emphasize that this move does not diminish our commitment to Nigeria and the region,” a spokesperson for Microsoft said.

“We will continue to operate in Nigeria, actively supporting the country’s transformation objectives. Our investment in key growth areas remains unwavering, and we are determined to contribute to Africa’s progress by providing digital solutions, fostering innovation, and empowering local talent.”

After it closed the ADC in June 2024, Olatomiwa Williams, the company’s Nigerian MD, met with Finance Minister Wale Edun and shared a similar message.

The Nigerian side’s worry was understandable after Microsoft chose to site a $1 billion investment in geothermal data centers in Kenya. It will also set up an engineering team to oversee those investments in the country. Kenya is now two for two in the race to attract foreign direct investment (FDI).