IBM, the American technology giant, has ceased operations in 36 African countries, including Nigeria and Ghana.
The company will transfer its regional functions to MIBB, a subsidiary of the Midis Group. Starting April 1, 2025, MIBB will take over the responsibility of marketing and selling IBM’s software, hardware, cloud, and consulting services in these regions.
“MIBB will market and sell IBM products and services in 36 African countries, thereby giving MIBB’s sales network direct access to IBM products, services, and support, further boosting innovation and growth in the region,” the company said in a statement.
Having operated in Nigeria for over 50 years, IBM has played a crucial role in shaping the country’s technology landscape, offering infrastructure and consulting services to key sectors such as banking, telecommunications, oil and gas, and government.
The reason for IBM’s exit is likely tied to near-unprofitability, compounded by growing competition from companies like Dell and Huawei, which has further diminished IBM’s client base.
Additionally, this is not the first time the company has reduced its footprint in Nigeria, as it has previously scaled back operations in response to market challenges.
IBM joins a growing list of technology companies scaling back or exiting Nigeria. For example, last year, Microsoft shut down its Africa Development Centre in Lagos with over 100 engineers.
Aside from tech companies, multinational firms like Kimberly-Clark, Pick n Pay, Diageo, and Holcim have exited Nigeria due to a tough economic environment marked by inflation and low consumer purchasing power​