By Okafor Joseph Afam | February 6, 2025

American technology giant International Business Machines (IBM) has exited Nigeria, marking another major multinational departure from the country. IBM, which had operated in Nigeria for over 50 years, is also leaving Ghana and several other African markets as part of a strategic shift.

The company announced that its operations would be transferred to MIBB, a subsidiary of Midis Group, a multinational IT and telecommunications conglomerate with a presence across Europe, the Middle East, and Africa.

“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 said in a statement on Wednesday.

A Growing Trend of Multinational Exits

IBM’s exit is the latest in a series of multinational departures from Nigeria, signaling rising concerns over the country’s economic environment.

In October 2024, South African grocery retailer Pick n Pay exited Nigeria after selling its 51% stake in a joint venture.

Earlier in 2024, at least five major companies also left the country, including:

• Microsoft Nigeria
• PZ Cussons Nigeria Plc
• Kimberly-Clark Nigeria
• Diageo Plc

Analysts point to foreign exchange volatility, inflation, regulatory hurdles, and high operating costs as key reasons for these exits.

IBM’s Legacy in Nigeria

IBM played a crucial role in Nigeria’s technology sector for decades. In the 1960s, the company helped establish a digital education center at the University of Ibadan, contributing to Nigeria’s early IT development.

IBM provided infrastructure, consulting services, and digital solutions across multiple industries, including:

• Education
• Banking
• Telecommunications
• Oil and Gas
• Government

Despite its exit, IBM’s influence in Nigeria’s digital transformation remains significant.

What’s Next?

With IBM’s withdrawal, MIBB will now take over IBM’s regional functions. However, concerns remain about the broader trend of multinationals leaving Nigeria and what it means for the country’s investment climate.

As economic challenges persist, stakeholders continue to debate how best to attract and retain global businesses in Africa’s largest economy.