RIP, big tech?
Microsoft joins the growing list of multinational firms leaving Nigeria.
I have another confession. Anytime I pass by the Microsoft office in Ikoyi, I always say “I’m coming for you”. So today’s newsletter was hard for me to write. But I plan to shake the sadness off and keep my big tech dreams alive as I hope other tech professionals would.
- Margaret
Word count: ~1200
Reading time: ~ 2 mins
Let’s get into today’s edition:
Microsoft Shuts Down Operations In Lagos Centre
Nigerian executives accused of demanding $150 million from Binance executives before arresting them
NLC Rejects Planned Cybersecurity Levy
The Big Deal
Microsoft Shuts Down Operations In Lagos Centre
Microsoft is shutting down the engineering section of its Africa Development Center in Nigeria, two years after it opened. The big tech company reportedly informed their employees on Monday of the closure plans. There are unconfirmed reports that their employees will remain on payroll and health insurance until June. The Kenyan centre, the only other centre in Africa, remains open.
Why is Microsoft leaving Nigeria?
Naira has had a tough year so far. The constant depreciation in the value of the currency is affecting businesses just as much as it is affecting the citizens. Microsoft recently announced via email that the price to subscribe for the Microsoft 365 Family plan had changed from ₦49,999 to ₦66,999. This increase could not have come at a worse time for Nigerians due to the high inflation rate that has impacted the average Nigerians’ purchasing power, stunting the growth of businesses like Microsoft.
According to the tech giant, organisational structure and workforce adjustments are important to keep the business running. The exit from Nigeria is expected to help Microsoft prioritise and invest in strategic growth areas for their future.
Does the exit change anything?
Microsoft shutting down their centre in Nigeria is not expected to affect their Nigerian customers. There’s no report that they plan on making their services unavailable to the citizens of the nation. However, for the employees and tech talents that aspired to work in their Lagos centre, this changes everything. In 2022, Managing Director of Microsoft ADC West Africa, said as quoted by The Guardian, “We intended to recruit 500 full-time engineers by the end of the year or by 2023. However, currently, we have exceeded 500. This is to tell you about the abundance of talents we have in Africa.” The exact number of the affected employees is still unconfirmed but multiple reports claim that they are over 200. This is another unfortunate loss to the nation’s growing tech ecosystem. This closure adds to the list of multinational firms like Procter & Gamble, GlaxoSmithKline (GSK) Plc and Bayer AG that have been forced to either revamp their business or leave Nigeria in recent times.
Nigerian executives accused of demanding $150 million from Binance executives before arresting them
From the arrest of Binance executives Nadeem Anjarwallar and Tigran Gambrayan for evading taxes to the Prison Break inspired escape of Anjarwallar, we have barely had one day free of the Binance VS Federal Government drama since February. Tigran was allegedly asked by Nigerian officials to pay a bribe of $150 million in crypto a month before he was arrested. The bribery allegation was made in an article written by Binance Chief Executive Officer, Richard Teng and published by the New York Times on Tuesday.
The two executives were given a 48 hours ultimatum to complete the payment after meeting with Nigerian legislators. This request forced Tigran to leave the country in a hurry and share a document that contained details about the payment request with the Binance lawyers and the company’s contacts in the Nigerian government. Both Tigran and Anjarwallar were arrested and detained on the orders of the National Security Adviser, Nuhu Ribadu a month after Tigran’s return from his report visit.
How is FG reacting?
The spokesman for the Office of the National Security Adviser, Zakari Mijinyawa, has told the public that President Tinubu led administration will follow due process in response to Binance’s allegations.
In a text sent to New York Times, Mijinyawa said the government would make its case “on the strength of the facts and evidence, in accordance with due process.” He also added that the government is confident that they have a good case, stating that Binance will have every opportunity under the rule of law to make their case and see justice delivered.
Why does this matter?
Corruption has always been one of the country’s biggest problems, hindering the societal and economic growth of its citizens. From snake allegedly swallowing ₦36 million in the Joint Admissions and Matriculation Board (JAMB) office to the $720,000 school fees, Nigerians have heard enough trumped up stories to last a lifetime. In 2023, the country recorded an improved position in the Corruption Perception Index (CPI), moving 5 places higher. The corruption in the nation is the leading driver of the citizens’ distrust in its democratic system. In the past years, we’ve seen the japa wave sweep away some of Nigeria’s finest citizens especially medical and tech professionals. The House of Representatives has denied the allegation but further investigations into the case should be launched in the coming days as stated by Minjinyawa. If Binance’s allegation is found to be true, it could be the last straw that dashes the hope of a better Nigeria for many citizens in Nigeria and the diaspora.
NLC Rejects Planned Cybersecurity Levy
If you think the 0.5% cybersecurity levy on all electronic transactions introduced by the Central Bank of Nigeria is ridiculous, the National Labour Congress thinks so too. NLC said the levy which is expected to take effect on May 20 is yet another burden on Nigerians. The NLC President, Joe Ajaero rejected the policy, saying that such deductions directly affect the income of workers, and will contribute to the reduced purchasing power of the common citizens.
“The Nigeria Labour Congress recognises the importance of cybersecurity in today’s digital age,” the statement released by the congress reads.
“However, imposing such a levy on electronic transactions without due consideration for its implications on workers and vulnerable segments of society is unjustifiable.
“This levy stands as another tax that is too much for Nigerians, burdening them with additional financial responsibilities.
Is this rejection going to change anything?
The Nigerian government does not have a long history of compromising based on civil criticism but if the NLC and masses kick back harder, maybe, just maybe, there’ll be a slight reduction in the levy.
This Week’s Big Question
“If money was not a problem, what would you spend the rest of your life doing?”’
Temi’s response - “If I no longer have to work for money, I’ll spend the rest of my life spending money without checking my account balance. I think the point of being a trust fund baby is to aspire to be nothing else.”
You can also share your response here and if it’s as interesting as Temi’s response, we’ll feature it in the next edition.
The Big Picks
President Tinubu returns to the country after Europe trip: The Special Adviser to the President on Information and Strategy tweeted on Tuesday that the president whose location was unconfirmed for days would be back in the country on Wednesday. He has now made a follow-up post on X saying that the president arrived yesterday. The conspiracy theories were fun while they lasted.
Jumia lowers operating losses 70% in Q1 2024 even as profit remains elusive: Jumia, a leading African e-commerce platform, has recorded reduced operating losses by 70% in Q1 2024 after brutal cost-cutting measures that saw it trim advertising costs to $3.8 million, a 30% drop compared to Q1 2023.
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This is how to write news . What I need is to learn from wherever put this together because o am seeing shege in the news department I just got assigned to . It’s a radio station so I’m supposed to make news stories into two, three sentences at most .
It’s TOUGHHHH, but this was a good read Welldone !