News

July 19, 2023

FG targets $5bn from outsourcing industry in 2024

NEPC

The Nigerian Export Promotion Council (NEPC) on Wednesday in Abuja said that Nigeria targets to earn five billion dollars from the outsourcing industry in 2024.

The Executive Director of NEPC, Dr Ezra Yakusak said this at the National Conference on International Trade-in-Service organised by the council, on Wednesday in Abuja.

According to Yakusak, the outsourcing industry has the capacity to boost human capital, drive the economy and bring about emerging technologies.

He said that some of the services outsourced are financial, advertising, courier, customer support services, logistics, etc.

“In recent years, Nigeria has become an increasingly attractive destination for outsourcing, particularly in areas of call center operations, software development and back office support.

“The country’s high population and relatively low labour cost, favourable time zone, and English proficiency make it an appealing location for business seekers to outsource certain tasks or functions,’’ he said.

According to him, Nigeria is moving gradually and focusing more on export of services because it is an area that has been neglected for a long time.

He said it was a sector where we could get high revenue exchange earnings.

“It has so much potential but if our services sector is well harnessed we can earn more than the 4 .8 billion dollars we are earning from our products.

“We are looking at five billion dollars in 2024,’’ he said.

Yakusak said trade in services had emerged as the driving force that shapes the global economic landscape of countries.

“In essence, the future of global trade is services,’’ he said.

Also speaking, Dr Evelyn Ngige, Permanent Secretary, Ministry of Industry, Trade and Investments, said that outsourcing, particularly in the field of information technology-enabled services revolutionised the global business landscape.

Represented by Mr Suleiman Audu, Director of Trade in the ministry, Ngige said that the sector transcended geographical boundaries and enabled organisations to leverage expertise.

She added that it reduced costs and improved efficiency by tapping into talent pools around the world.

“Nigeria, with its immense human capital, has the inherent potential to become a leading player in this transformative industry.

“The country boasts of a large pool of educated and skilled professionals, including an English-speaking workforce, which is advantageous for English-language outsourcing services.

“Nigeria has seen growth in areas such as call centers, data entry, software development, and content moderation,’’ Ngige said.

She said that to harness opportunities presented by outsourcing and ITES, Nigeria must adopt a multi-faceted approach that encompasses several key areas.

Ngige emphasised that it was essential to create a competitive location and conducive business environment to the growth of the outsourcing industry.

“This involves implementing policies that create a favorable business climate, ensuring ease of doing business, and providing a level playing field for both local and international players.

“We must streamline bureaucratic processes, simplify regulatory frameworks and offer attractive incentives to investors and businesses seeking to establish or expand their operations in Nigeria,’’ Ngige said.