Tech giant IBM has announced plans to discontinue its operations across 36 African countries, including Nigeria and Ghana, transferring its regional functions to MIBB, a subsidiary of the Midis Group. The handover, effective April 1, 2025, will place MIBB in charge of marketing and selling IBM’s software, hardware, cloud, and consulting services.
Nigeria, one of IBM’s six strategic African markets, has hosted all five of the company’s main business divisions – services, hardware, software, finance, and consulting. Throughout its presence, IBM extended corporate social investment initiatives, partnering with Nigeria’s Ministry of Communication and Technology on projects spanning clean water, sanitation, financial services, energy, transportation, and healthcare systems.
Having operated in Africa for more than six decades, IBM has shaped critical sectors including banking, telecommunications, oil, gas, and government. The company’s 2014 launch of an Innovation Centre in Lagos aimed to accelerate West African business development and IT skills training.
The exit comes as cloud adoption surges across Africa. Nigeria’s cloud usage is projected to triple over the next decade, potentially contributing ₦30.2 trillion to the economy by 2033, according to Telecom Advisory Services. This growth coincides with the centenarian’s global financial challenges – despite a slight overall revenue increase in 2024, the company’s consulting and infrastructure sales continued to decline.
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IBM’s retreat aligns with findings from its 2024 X-Force Threat Intelligence Index, highlighting growing cybersecurity concerns. Rising cyberattacks targeting valid user accounts and cloud services may have influenced the company’s strategic shift. Meanwhile, competitors like Huawei have gained ground, becoming Nigeria’s largest telecom vendor through end-to-end solutions and strong local partnerships.
Midis Group, operating across 70 countries, brings IT services, cloud solutions, and system integration expertise through MIBB. While this transition offers potential innovation opportunities, businesses affected face uncertainty in adapting to the new operational model. The fate of IBM’s Lagos Innovation Centre raises questions about foreign tech companies’ commitment to local capacity building.
The handover grants MIBB access to IBM’s complete product portfolio, though the long-term impact on local partnerships and innovation initiatives remains unclear. As IBM steps back, companies with broader approaches and stronger local presence appear better positioned to thrive in Africa’s evolving tech landscape.
