IBM has announced its decision to exit Nigeria, Ghana, and several other African markets, transferring its operations to MIBB, a subsidiary of Midis Group, effective April 1, 2025. This shift is part of IBM’s new operating model aimed at streamlining its business in select African countries.
Under the new arrangement, MIBB will oversee IBM’s operations across 36 African nations. It will be responsible for marketing and selling IBM’s full suite of products and services, including software, hardware, cloud solutions, and consulting. MIBB will also handle customer support and relationship management across the region, ensuring clients have continued access to IBM’s solutions.
IBM, a key player in Nigeria’s tech space for over 50 years, has been instrumental in providing infrastructure and consulting services across vital sectors such as banking, telecommunications, oil and gas, and government. The company’s high-end storage and computing solutions were particularly popular with financial institutions like Zenith Bank.
However, in recent years, IBM’s market share in Nigeria has declined due to increasing competition from global tech giants like Dell and Huawei, which have strengthened their presence in the region’s banking sector.
Globally, IBM has also faced financial challenges. In 2024, the company reported a 2% decline in consulting revenue, totaling $5.18 billion, while infrastructure sales dropped by 8%. Despite these setbacks, overall revenue grew by 1% to $17.55 billion, driven primarily by a 10% increase in software sales. The company’s net income for the fourth quarter stood at $2.92 billion, and it expects a minimum of 5% revenue growth in 2025, supported by a projected free cash flow of $13.5 billion.
IBM’s departure from West Africa raises questions about the long-term impact on local businesses and government partnerships. While the transition to MIBB could open new opportunities for innovation and support, companies that depend on IBM’s services must prepare for operational adjustments. The full impact of this change will unfold in the coming months as the region’s technology sector adapts to the new landscape.
