IBM has officially ended its direct operations in Nigeria, Ghana, and other African markets. They have transferred its regional functions to MIBB, a subsidiary of the multinational IT conglomerate Midis Group. This transition is effective from April 1, 2025. MIBB will market and sell IBM’s products and services across 36 African countries, giving MIBB’s sales network direct access to IBM’s software, hardware, cloud, and consulting offerings.
In addition to sales, MIBB will manage IBM’s customer relationships, local support, and operational responsibilities, ensuring continuity in service delivery. IBM confirmed the transition in an email to TechCabal, emphasizing that the new arrangement is aimed at driving innovation and growth in the region.
IBM has been a key player in Nigeria for over five decades, providing high-end computing solutions to industries such as banking, telecommunications, oil and gas, and government institutions. Major Nigerian banks, including Zenith Bank, have relied on IBM’s infrastructure, particularly its storage and computing solutions. However, increasing competition from global tech firms such as Dell and Huawei—both of which have expanded their presence in Nigeria’s banking sector—has contributed to a shrinking client base for IBM in the region.
The company decides to exit certain African markets amid broader financial struggles. In 2024, IBM reported a 2% decline in consulting revenue, dropping to $5.18 billion, while its infrastructure sales fell by 8%. Despite these declines, the company saw a 1% increase in overall revenue, reaching $17.55 billion, largely driven by a 10% rise in software sales, which totalled $7.92 billion. IBM also recorded a net income of $2.92 billion in Q4 2024 and expects at least 5% revenue growth in 2025, with a projected free cash flow of $13.5 billion.
While IBM’s exit marks the end of an era for its direct presence in Nigeria and Ghana, the long-term impact on businesses and government partnerships remains uncertain. As the African tech ecosystem adapts, the full effect of this transition will unfold in the coming months.
