IBM exits Nigeria, Ghana, other African markets

• IBM has exited Nigeria, Ghana, and other African markets
• The company transferred its regional functions to MIBB
• IBM is integral in driving Nigeria’s technology development, having provided infrastructure and consulting services to crucial sectors within 50 years

IBM, an American technology company, has announced its exit from Nigeria after 50 years, Ghana, and other key African markets due to operational challenges.

The company joins the long list of companies that exited Nigeria in recent years.

IBM said it has transferred its regional functions to MIBB, a subsidiary of Midis Group, a multinational IT and telecommunications conglomerate operating across Europe, the Middle East, and Africa.

According to the company, the move is part of a new operating model that the company will implement in select African countries, effective April 1, 2025.

MIBB to sell IBM’s products and services in Africa

With the transfer of IBM’s regional functions to MIBB, the company will sell and market the products and services of IBM across 36 African countries.

This gives MIBB’s sales network direct access to IBM’s software, hardware, cloud, and consulting offerings.

According to the company, the partnership hopes to boost innovation and growth in the region with MIBB taking over the responsibility of IBM’s operations, support, and local customer relationships.

IBM drove Nigeria’s tech development

IBM has been part of the technology development in Nigeria since its entrance 50 years ago.

The company provided infrastructure and consulting services to such industries as banking, telecommunications, oil and gas, and government.

Among its clientele are banks like Zenith, which uses IBM’s high-end storage and computing solutions for its banking operations.

The company, however, faced stiff competition from companies like Dell and Huawei, following their expansion into Nigeria’s banking sector, leading to a declining client base for IBM.

IBM faces global financial difficulties, hopeful for 2025

On a global scale, IBM is faced with financial difficulties, having reported declines in consulting revenue and infrastructure sales.

IBM posted a two per cent drop in consulting revenue to $5.17 billion in the fourth quarter (Q4) of 2024, as well as an eight per cent decline in infrastructure sales in 2024.

However, the company recorded a one per cent overall revenue increase, which hit $17.55 billion, on the back of a 10 per cent growth in software sales, which climbed to $7.92 billion.

It also reported a net income of $2.92 billion in the fourth quarter of 2024 and anticipates at least five per cent revenue growth in 2025 due to a projected free cash flow of $13.5 billion.

10 companies that have exited Nigeria in the last 2 years

Meanwhile, TheRadar earlier reported that due to economic instability in Nigeria, many businesses have exited the country, adding to the unemployment statistics and the burden of Nigerians’ daily lives.

TheRadar spotlighted 10 companies that have left Nigeria in the last two years.