The Nigerian Business Process Outsourcing Market has been estimated to hit a $1.8 billion valuation in 2028 from its previous valuation of $980 million recorded in 2023.
Mr. Chris Itsede, Chairman of a top consulting firm in business management, Polar-Afrique Consulting, spoke about the growth of the outsourcing business, reaching an estimated $731 billion in 2023. He discussed this during the 10th Fellowship Investiture/Induction Conference of the Association of Outsourcing Professionals of Nigeria in Lagos.
He said, “Intuitively, we can infer that the intentional transformation and development of informal enterprises can unlock innovation, diversify services, and create a more robust outsourcing economic system by linking the informal sector with the outsourcing industry.”
Further adding, “Leverage the lower operational costs associated with the informal sector to offer competitive pricing to outsourcing entrepreneurs. We must foster a culture of innovation by tapping into the creativity and problem-solving abilities of informal sector workers.”
He buttressed preparation meeting opportunities for outsourcing professionals to continually develop themselves to meet the ever-changing technological landscape and demands of local and international clients.
Chris expressed the importance of the informal sector in the growth of the economy.
He said, “Nigeria’s vibrant informal sector, often overlooked, is a cornerstone of the economy, contributing 60% to the $362.8bn GDP in 2023, exceeding the combined GDP of Ghana, Tanzania, and Zimbabwe.”
“The sector employs 80% of Nigeria’s workforce. The informal sector is vital for poverty alleviation and economic resilience. Unlocking its potential can transform outsourcing and boost economic growth.”
Complementing what Chris Itsede had said about the informal sector was Mr. Oluwaseun Faleye, MD/CEO of the Nigeria Social Insurance Trust Fund (NSITF), who was present at the event. He said, “The informal sector employs the majority of Nigeria’s workforce, yet workers often lack access to social protection, leaving them financially vulnerable to injuries, diseases, or other work-related risks. This gap undermines productivity and economic stability.”
Kashifu Abdullahi, DG/CEO of the National Information Technology Development Agency (NITDA), said, “Integrating the informal workforce into formal outsourcing frameworks will harness their skills, promote financial inclusion, and empower a significant segment of our population.”
Adding more, he said, “Outsourcing is key to creating jobs, boosting productivity, and attracting investments. Through our National Outsourcing Strategy, we aim to position Nigeria as a global outsourcing hub.”
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