American tech giant, International Business Machines (IBM), has announced its exit from the Nigerian market, after more than five decades of operations amdist huge loss. IBM will also withdraw from other African nations, including Ghana, transferring its regional operations to a third-party company.
IBM is among the latest international firms to depart the Nigerian market, following similar moves by companies such as Guinness in 2024. Major tech giants like Meta and Microsoft have also scaled back their physical presence in the country, opting for desk-sharing arrangements for their employees.
Under a new agreement, IBM will transfer its regional functions to MIBB, a subsidiary of the Midis Group. Midis Group is a multinational IT and telecommunications conglomerate with operations across Europe, the Middle East, and Africa.
In a statement, IBM mentioned, “MIBB will market and sell IBM products and services in 36 African countries, providing MIBB’s sales network with direct access to IBM offerings, thus enhancing innovation and growth in the region.”
IBM’s presence in Nigeria has been significant since the 1960s when it helped establish an educational center at the University of Ibadan, contributing to the nation’s digital capacity. The company has played a key role in developing Nigeria’s technology landscape by offering infrastructure and consulting services across various sectors, including education, banking, telecommunications, oil and gas, and government.
However, IBM has faced increasing competition from companies like Dell and Huawei, leading to a reduction in its client base. Notably, this isn’t IBM’s first exit from Nigeria.
