IBM is exiting Nigeria and Ghana, transferring its functions to MIBB, a subsidiary of Midis Group, due to increasing competition. This follows a trend of technology firms reducing their operations in Nigeria, a shift marked by significant exits since 2024. IBM has been active in Nigeria for over 50 years, contributing to various sectors but faces challenges from new competitors.
IBM, the American tech giant, is exiting Nigeria alongside Ghana and other significant African markets by transferring its regional functions to MIBB, a subsidiary of Midis Group, starting from April 1, 2025. This decision marks a trend in which numerous technology firms are either scaling back operations or leaving Nigeria, a situation that has escalated since 2024 when companies like Meta and Microsoft downsized their office spaces in Nigeria, opting for desk-sharing models for employees.
The move comes after IBM operated in Nigeria for over five decades, beginning in 1963 with an educational initiative at the University of Ibadan. Throughout its presence, the company contributed significantly to the technology landscape by offering infrastructure and consulting services in pivotal sectors such as education, banking, telecommunications, and oil and gas. However, the rise of competitors such as Dell and Huawei has led to a reduction in IBM’s client base.
Under this new arrangement, MIBB is set to spearhead IBM’s marketing and sales efforts across 36 African countries, enhancing regional access to IBM’s products and services. The collaboration aims to foster innovation and economic growth within the continent while granting MIBB a direct sales network for IBM offerings. This strategic pivot illustrates how global firms are realigning their operations in response to shifting market dynamics.
This shift in IBM’s strategy is part of a broader trend in the technology sector where firms are re-evaluating their presence in emerging markets such as Nigeria. Over the last several years, industry players have faced increasing pressures from local and international competitors, leading to operational changes. This transition signals a significant reshaping of the regional technology landscape as companies adapt to economic challenges and competitive pressures.
IBM’s impending exit from Nigeria mirrors a larger trend of technology companies reassessing their foothold in the country due to increased competition and market challenges. By transitioning its operations to MIBB, IBM seeks to maintain a presence in Africa while streamlining its functions. This marks the end of an era for IBM in Nigeria and highlights the need for adaptation in a rapidly evolving technological environment.
Original Source: businessday.ng
