IBM Shuts Down in Nigeria and Other Key African Markets

February 7, 2025

(3 Minutes Read)

IBM, the American technology giant specialising in IT solutions, has announced the end of its operations in Nigeria, Ghana, and other key African markets. Effective April 1, its regional functions will be transferred to MIBB, a subsidiary of Midis Group, a multinational conglomerate operating in the IT and telecommunications sectors in Europe, the Middle East, and Africa. The move will also affect 34 other African countries where IBM was present.

IBM is partnering with MIBB to launch another operating model and remains committed to doing business in Africa. This new operating model demonstrates IBM’s strong commitment to Africa. IBM will continue to invest and innovate in Africa, including continuing to develop the industry’s most advanced artificial intelligence and hybrid cloud computing technology to ensure our clients’ success, IBM said in a statement.

The move is part of a global strategic reorganization for IBM. With a presence in Nigeria for over 50 years, the company has played a key role in the technology sector, providing infrastructure and consulting services to critical industries such as banking, telecommunications, oil, gas, and government. Growing competition from companies like Dell and Huawei, combined with global financial challenges, has led to the repositioning.

In 2024, IBM reported a 2% decline in consulting revenue to $5.18 billion, while infrastructure sales fell 8%. However, the company posted an overall 1% increase in revenue to $17.55 billion, driven by 10% growth in software sales to $7.92 billion.

IBM’s exit from African markets comes as cloud adoption is growing rapidly on the continent. According to a study by Telecom Advisory Services commissioned by AWS, cloud usage in Nigeria is expected to triple over the next decade, potentially contributing $30.2 trillion to the country’s economy by 2033. The growth comes despite the company’s global financial woes. While IBM saw a slight increase in overall revenue in 2024, its consulting and infrastructure businesses continued to decline.

The partnership with MIBB could, however, boost innovation in Africa. MIBB will handle operations, support and local customer relationships, while marketing IBM products and services, including software, hardware, cloud and consulting. According to Google and the IFC, the African digital market is expected to represent 5.2% of the continent’s GDP by 2025. While these prospects attract some technology leaders, others are choosing to strategically withdraw from the market.