IBM announces exit from Nigeria, other key markets in Africa

American technology firm IBM has ceased its operations in Nigeria, Ghana, and several other key African markets, reallocating its regional functions to MIBB, a subsidiary of Midis Group. This transition is part of a new operational framework that IBM plans to implement in selected African nations, starting April 1, 2025.

MIBB will be responsible for marketing and selling IBM’s products and services in 36 African countries, thereby providing MIBB’s sales network with direct access to IBM’s software, hardware, cloud, and consulting solutions. This collaboration is anticipated to enhance innovation and growth within the region, with MIBB assuming the duties of IBM’s operations, support, and local customer engagement.

IBM has been a significant player in Nigeria for over 50 years, contributing to the technology sector by offering infrastructure and consulting services to essential industries, including banking, telecommunications, oil and gas, and government.

Notably, the company’s advanced storage and computing solutions have been extensively utilised by prominent banks such as Zenith. However, the rise of competitors like Dell and Huawei, which have increased their presence in Nigeria’s banking industry, has resulted in a diminishing client base for IBM.

In addition to the challenges faced in Africa, IBM has encountered financial struggles on a global scale. In 2024, the company reported a 2% decrease in consulting revenue, totaling $5.18 billion, while infrastructure sales experienced an 8% decline.

Nevertheless, IBM achieved a 1% overall revenue increase, reaching $17.55 billion, primarily due to a 10% rise in software sales, which amounted to $7.92 billion. The company also recorded a net income of $2.92 billion in the fourth quarter and anticipates at least 5% revenue growth in 2025, supported by an expected free cash flow of $13.5 billion.

While IBM’s exit from West Africa signifies the conclusion of its direct operations in the region, the long-term effects on local businesses and government collaborations remain uncertain.