Nigeria’s BPO market to surpass $1.8Bn by 2028
ABUJA, NIGERIA — Nigeria‘s business process outsourcing (BPO) sector is projected to experience significant growth, nearly doubling its market value over the next five years.
According to Chris Itsede, Chairman of Polar-Afrique Consulting, the BPO market, valued at approximately $980 million in 2023, is expected to grow at an annual rate of 12.56%, potentially exceeding $1.8 billion by 2028.
This optimistic forecast was shared at the 10th Fellowship Investiture/Induction Conference of the Association of Outsourcing Professionals of Nigeria held in Lagos.
Leveraging the informal sector for economic expansion
A key factor in this anticipated growth is Nigeria’s dynamic informal sector, which plays a crucial role in the national economy.
Contributing 60% to Nigeria’s $362.8 billion gross domestic product (GDP) and employing 80% of the workforce, this sector is often overlooked but holds immense potential for transformation and innovation in outsourcing.
Itsede highlighted that integrating informal enterprises into the formal outsourcing industry could unlock new opportunities, diversify services, and enhance economic resilience.
Strategic development plans for outsourcing entrepreneurs
To harness this potential, Itsede called for a structured action plan to equip outsourcing entrepreneurs with the necessary skills and expertise to meet both domestic and international demands.
He emphasized the importance of leveraging lower operational costs within the informal sector to offer competitive pricing and foster a culture of innovation among entrepreneurs.
Industry leaders call for inclusive growth strategies
The conference also featured insights from other industry leaders who underscored the importance of inclusive growth strategies.
Association of Outsourcing Professionals of Nigeria President Mope Abudu stressed unity and collective progress among members as essential for industry advancement.
Oluwaseun Faleye, Managing Director and CEO of the Nigeria Social Insurance Trust Fund, highlighted the need to integrate informal workers into social protection schemes to improve productivity and economic stability.
Kashifu Abdullahi, Director-General and CEO of the National Information Technology Development Agency (NITDA), reiterated the significance of incorporating informal workers into formal outsourcing frameworks. He noted that outsourcing is pivotal in creating jobs, boosting productivity, and attracting investments, reaffirming NITDA’s commitment to fostering digital literacy and entrepreneurship.
Nigeria’s path to becoming a global BPO hub
As Nigeria implements strategic initiatives such as the National Outsourcing Strategy, there is growing optimism about its potential to become a global outsourcing hub.
By focusing on the strengths of its informal sector, Nigeria is well-positioned to drive economic growth and innovation, solidifying its status as a key player in the global BPO market by 2028.
