The Federal Government of Nigeria has unveiled a plan to create 5 million jobs within the next four years through the implementation of its National Outsourcing Strategy.
The strategy is also expected to increase the contribution of outsourcing to Nigeria’s GDP by 25% by 2027.
In this article, we will take a closer look at the details of the National Outsourcing Strategy and its potential impact on the country’s economy.
The Goal of the National Outsourcing Strategy
The National Outsourcing Strategy (NOS) 2023-2027 released by the National Information Technology Development Agency (NITDA) aims to make offshore outsourcing a significant contributor to Nigeria’s economy.
It seeks to achieve a diversified economy that will ensure growth and prosperity for citizens and businesses. The strategy includes a target to acquire 30% of the global outsourcing industry by 2027 and increase IT-enabled outsourcing platforms by 70%.
Leveraging Nigeria’s Youthful Population
Nigeria’s youthful population is considered an asset that will be leveraged to achieve the targets set by the National Outsourcing Strategy.
With the largest population in Africa and a median age of 19 years, the country has a tremendous opportunity to lift the standard of living of its citizens through effective implementation of the National Digital Economy Policy and Strategy.
The rapid growth of the IT-enabled outsourcing services sector will address various socio-economic challenges the country is facing, including the need to create jobs, expand the tax base, improve technology transfer, and attract foreign direct investment.
The Growing BPO Industry in Nigeria
The Nigerian Business Process Outsourcing (BPO) industry has grown significantly in recent years, with call centre services dominating the sector.
As of December 2019, the Nigerian Communication Commission (NCC) had issued licenses to 12 companies providing call centre services and 5 companies providing call directory services. Local call centre providers offer services to the banking sector, telecommunication companies, and the government.
The local telecommunication industry also commonly outsources its base station and transmission site management to servicing companies.
Implementation of the National Outsourcing Strategy
One of the core pillars of the National Outsourcing Strategy is to create an enabling environment for increased investments and deployment of technologies and infrastructure that will accelerate the promotion of the country’s human capital for outsourcing.
This includes providing basic underlying infrastructure such as electricity, broadband, and data centres, as well as efficient and effective front-end web platforms that will allow Nigerian individuals and companies to advertise their skills/jobs, acquire jobs, submit jobs, and receive payment.
To onboard as many skilled Nigerians as possible, Nigeria will raise awareness of existing web-based global outsourcing platforms and encourage skilled Nigerians to register on them.
The National Outsourcing Strategy 2023-2027 has set an ambitious target to create 5 million jobs within the next four years and increase the contribution of outsourcing to Nigeria’s GDP by 25% by 2027.
Nigeria’s youthful population is a significant asset that will be leveraged to achieve these targets. The BPO industry has grown significantly in recent years, and the government is increasingly looking to outsource some of its non-core services.
By implementing the National Outsourcing Strategy, Nigeria has the potential to become a significant player in the global outsourcing industry.