IBM’s Departure from Africa
IBM, a leading American technology company, is withdrawing from Nigeria, Ghana, and several other key African markets. As part of this move, the company is shifting its regional functions to a third-party firm.
This decision places IBM among a growing number of tech giants that have either exited or significantly reduced their presence in Nigeria. In 2024, Meta and Microsoft scaled down their physical operations in the country, reducing office space and adopting a desk-sharing model. Additionally, Microsoft closed its Africa Development Centre, which housed over 100 engineers, retaining fewer than five employees.
New Operating Model from 2025
IBM’s withdrawal is part of a new operating model, set to take effect on April 1, 2025, in selected African countries. Under this arrangement, IBM will transfer its regional functions to MIBB, a subsidiary of Midis Group, an international IT and telecommunications conglomerate operating in Europe, the Middle East, and Africa.
According to IBM’s statement, “MIBB will market and sell IBM products and services in 36 African countries, granting its sales network direct access to IBM’s offerings, thereby driving innovation and growth in the region.”
End of a 50-Year Presence in Nigeria
IBM’s exit marks the end of over five decades of operation in Nigeria. The company established a significant presence in 1963, when it launched an educational center at the University of Ibadan to build digital capacity. Over the years, IBM played a crucial role in Nigeria’s tech landscape, offering infrastructure and consulting services across key industries, including:
- Education
- Banking
- Telecommunications
- Oil and Gas
- Government
Factors Behind IBM’s Exit
Despite its long-standing presence, IBM has faced growing competition from tech giants like Dell and Huawei, which have gradually eroded its client base. As a result, the company has struggled to maintain its market position.
Notably, this is not IBM’s first exit from Nigeria. The company has previously scaled back operations, only to return later. However, this latest move signals a more permanent transition, as IBM hands over its regional operations to MIBB.
