The Chairman of Polar-Afrique Consulting, Mr Chris Itsede, has revealed that the Nigerian Business Process Outsourcing market, valued at approximately $980m in 2023, is projected to grow annually at a rate of 12.56%, potentially exceeding $1.8bn by 2028.
Speaking at the 10th Fellowship Investiture/Induction Conference of the Association of Outsourcing Professionals of Nigeria, with the theme ‘Unlocking the Nigerian Informal Sector for Sustainable Outsourcing Growth’, on Thursday in Lagos, Itsede noted that the global outsourcing industry has recently witnessed remarkable growth, with global spending reaching an estimated $731bn in 2023.
He highlighted the critical role of the industry in today’s economy and the increasing reliance of businesses on outsourced services to drive efficiency, innovation, and scalability.
Itsede 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.”
He urged the development and implementation of a structured action plan to equip outsourcing entrepreneurs with diverse skills and expertise to meet the demands of both domestic and international partners.
“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 stressed.
Itsede further stated that global shifts have reshaped labour markets, highlighting the important role of the informal sector.
“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,” he stated.
“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,” Itsede added.
In her opening remarks, the President of the Association of Outsourcing Professionals of Nigeria, Ms Mope Abudu, highlighted the significance of unity and collective progress among members.
“We must prioritise our workforce and share our knowledge. As an association, we stand together to support each other,” she added.
Abudu expressed optimism for an improved business climate in the coming year.
The Managing Director and Chief Executive Officer of the Nigeria Social Insurance Trust Fund, Mr Oluwaseun Faleye, 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.”
He further called for effective collaboration among stakeholders to integrate informal workers into social protection schemes.
On his part, the Director-General and Chief Executive Officer of the National Information Technology Development Agency, Kashifu Abdullahi, said, “Integrating the informal workforce into formal outsourcing frameworks will harness their skills, promote financial inclusion, and empower a significant segment of our population.”
Abdullahi reaffirmed NITDA’s commitment to fostering digital literacy and entrepreneurship in the informal sector.
“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,” he added.
