American tech giant IBM has decided to end its business in Nigeria, and some other African countriesThe company is part of a growing trend of foreign companies scaling back or withdrawing from NigeriaUnder this new agreement, IBM will transfer its regional functions to MIBB, a subsidiary of Midis Group
Henzodaily.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
American technology company International Business Machines (IBM) has announced the end of its on-ground operations in various African markets, including Nigeria.
The tech company said it will transfer its regional functions to MIBB, a subsidiary of the Midis Group.
IBM has decided to exist African market
Photo credit: FlamingoImages
Source: Getty Images
The handover is effective from 1 April 2025 and will see MIBB take charge of marketing and selling IBM’s software, hardware, cloud, and consulting services.
MIBB, a subsidiary of Midis Group, is a multinational IT and telecommunications conglomerate operating across Europe, the Middle East, and Africa.
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In a statement, IBM said:
“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.”
IBM has been in Nigeria for over 50 years and it is one of IBM’s six strategic African markets, BusinessDat reports.
Nigeria has hosted all five of IBM’s main business divisions( services, hardware, software, finance, and consulting).
Companies that have left Nigeria
IBM is the first major company to announce its exit from the Nigerian market in 2025, but it follows a growing trend of multinational firms scaling back or shutting down operations in the country due to economic challenges.
The most recent example is Procter & Gamble, which disclosed its decision to cease on-ground operations in Nigeria during a presentation at the Morgan Stanley Global Consumer and Retail Conference.
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The company attributed this move to Nigeria’s macroeconomic conditions, stating that operating in the country had become increasingly difficult for a dollar-denominated organisation.
In 2024, Unilever Nigeria Plc, one of the country’s leading consumer goods companies, announced plans to discontinue the local production of some of its popular brands, including Omo and Lux, as part of its restructuring efforts.
Also, a Norwegian energy corporation, Equinor, declared that it had sold its Nigerian operations, including its stake in the Agbami oil field, to Chappal Energies, a Nigerian company.
Equinor’s three-decade presence in Nigeria comes to an end with this transaction.
Leading consumer goods manufacturer Procter & Gamble also revealed plans to dissolve its on-ground operations in Nigeria and turn the country into an import market.
Netflix denies plan to leave Nigeria
In a related development, popular streaming giant Netflix has debunked rumours of its purported exit from Nigeria amid economic challenges.
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The reports of Netflix’s exit sparked anxiety among Nigerians and filmmakers alike.
Several social media reports regarding Netflix’s exit were linked to renowned Nollywood actor Kunle Afolayan, who suggested that the streaming platform had cancelled several commissioned projects in Nigeria.
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Source: Henzodaily.ng