Nigeria Now
A rising nation builds momentum as a BPO hub
Over the past decade, Nigeria has emerged as one of Africa’s top prospects for business.
The country is the most populous in all of the African continent, with a population of more than 200 million, and the greater bulk of its inhabitants are young, motivated and energized.
This energy and motivation has turned Nigeria into one of Africa’s more solid economies. Its GDP expanded 2.74% in 2023, a pace of growth which surpassed that of the Latin America/Caribbean region (2%) and Eastern Europe (1%) that year. Nigeria’s GDP (US$362 billion) stands as the third largest in all of Africa, only behind Egypt (US$395 billion) and South Africa (US$377 billion).
Driven by Services
The services sector has established itself as one of Nigeria’s main economic drivers.
As of the second quarter of 2024, services contributed 58.7% of the country’s aggregate GDP, recording a 3.7% growth compared to the second quarter of 2023.
Nigeria’s zestful business landscape is also exemplified by its startup ecosystem, which ranks first in the whole continent. It is estimated that 3,360 startups existed in Nigeria by the close of 2022. Out of the seven unicorns that have come out of Africa, four emerged in Nigeria.
All of the above has made Nigeria an attractive investment proposal for some of the world’s top tech players. Over the past five years, both Microsoft and Google have invested in the development of the country’s digital capabilities and infrastructure. Nigeria’s tech sector has raised US$1.7 billion since 2021.
A Top Outsourcing Destination
Nigeria is rapidly establishing itself as one of the world’s top destinations for outsourcing. The country has many of the perks that attract BPO investors, and much of its potential has yet to be exploited.
Outsource Global: A Pivotal Player
Outsource Global is Nigeria’s leading BPO and IT-enabled services provider that offers a diversified service offering to global brands. They play a pivotal role in addressing youth under-employment challenges on a large scale, offering impact-driven services worldwide. Their mission is to make Nigeria the Premier Outsourcing Destination empowering women & youth for a better tomorrow.
Since inception in 2016, Outsource Global has created over 5,500 jobs and currently employs 2,000 people servicing the US, UK, Europe, Japan, Canada, Singapore and Africa. Outsource Global prides itself on the impact it creates through employment, as such the company maintains a gender ratio of 50/50 in both frontline and management positions.
In addition, Outsource Global is the Private Sector Driver of the Outsource to Nigeria Initiative, an initiative set to showcase and propel Nigeria to be the premier outsourcing destination in the world.
A Helping Hand
The Nigerian government recently launched two major strategies to turn the country into a global outsourcing hub.
Outsource to Nigeria Initiative (OTNI): Launched in March 2024, this public-private partnership seeks to “showcase Nigeria as the preferred outsourcing destination”. It provides, among other things, BPO-ready facilities, coverage of all corporate taxes, infrastructural support, access to local talent and incentives for training, research and development initiatives.
The National Outsourcing Strategy: Announced in early 2023, this plan aims to leverage Nigeria’s BPO sector as a major source for growth and economic development in the country. One of its several goals is to create 5 million jobs between 2023 and 2030.
Testimonials
“There are more English speakers in Nigeria than in India. Our proximity to Europe is an added advantage, and most importantly, in our diction.
“I will tell you a story of a young lady in Abuja. Her name is Mrs. Amal Hassan. She runs a digital outsourcing hub and has influenced over a thousand Nigerians. She is just a tip of the iceberg. Opportunities abound in the outsourcing industry, and in so many other developing frontiers. India is expected to generate US$100 billion from outsourcing alone in 2024.”
Senator Kashim Shettima (GCON), Vice President, Federal Republic of Nigeria
“Started my day in Abuja strong; with two powerful Nigerian leaders: Amal Hassan and Damilola Ogunbiyi, who are working to transform energy and leverage digitization to unleash Africa’s enormous potential.
“These industry leaders are reinventing the digital Nigeria of tomorrow. The coming generation is demanding digital access, skills and infrastructure to be able to shoot for the (virtual) moon. It’s our responsibility to take them to the next level”
Anna Bjerde, Managing Director of Operations, World Bank
“Today, the ‘new Nigeria’ exports literature, movies and music to a global audience. Last year, for example, a remix of “Calm Down” by the Nigerian musician Rema became the first track by an African artist to eclipse 1 billion streams on Spotify.”
From Ryan Strategic Associates’ “Europe and The Nearshore Report (2024)
“Nigeria has a significant brain capital advantage, with a large youthful population of an average age of 19 years. Considering the aging population in countries such as Germany, Japan, Italy and the United States, it is estimated that the worldwide working-age population will see a 10% decline by 2060.”
From PwC’s -”Nigerian Brain Exports Report (2022)
“I have worked as a partner with Outsource Global and have brought on a number of clients and partners to their table: from AI and ML, to outbound sales and technology. Every one of them has had nothing but great things to say about their experience..
“Nigeria isn’t the first country that comes to mind when offshoring, but the quality of its talent, its cost-effectiveness and attention to customer satisfaction makes it a global player in the making as far as offshoring and outsourcing are concerned.”
Mitch C. Galutera, Founder & Managing Director, B&G Shared Services Solutions
“Nigeria is quickly emerging as an ideal location for the delivery of business process, customer experience and contact center outsourced services to the global and domestic markets.”
GBS World’s “Poised for Growth: Nigeria’s Burgeoning BPO and Customer Experience Industry”
“Investments in brain exports like Outsource Global could be significantly less (a call centre worker’s station costs between $US2,500 and $US10,000) and lead to more confidence around higher value capital investments for Nigeria in the future.
“The distributed nature of opportunities arising from brain exports ensures that the risk associated with investments in mega projects are mitigated against as these opportunities are modular and scaled once targets are met.
“The export of high-value added services is already happening, as we have seen in high skill areas like music and football, and it is growing fast. It is also happening with local companies like Outsource Global and global companies setting up in Nigeria.”
Andrew Nevin, Chief Economist & Partner, PwC Nigeria
“We partnered with Outsource Global in 2016. Since then, we have witnessed tremendous growth, talent and adaptability of their business. Outsource Global has consistently recruited candidates for our needs. We appreciate the care and dedication Outsource Global has shown to our team and our clients.l”
US healthcare client
“We have worked with Outsource Global over the past three years, since our inception. We are a remote medicine medical practice, providing RPM services, and needed a strong partner to assist in our patient onboarding.
“Outsource Global has proven to be a fantastic choice and has nurtured us with their knowledge and experience as we continue to develop and refine our business model.”
Us client
“I am impressed with Outsource Global and what they have achieved over the years. This is very important because it is addressing one of Nigeria’s most important issues: employment.
“Amal Hassan is an inspiring example of what women can achieve despite obstacles. Coming from a conservative Fulani Muslim background, she has become a successful entrepreneur in her chosen field.”
Stuart Symington, US Ambassador to Nigeria (2016-2019)
“Great structure and communication from management. Recruitment process has always been seamless.”
US client
“We have been able to maintain a department with more than 50 highly qualified lawyers, averaging a loss of only 5 lawyers per year, since we started. This type of retention is highly unusual with such a large department. This is, in large part, due to the effort put forth in screening.
“We are very well supported by HR and senior management at Outsource Global whenever necessary. The associates themselves are extremely dedicated to their work, but also to their professional growth, so they embrace new opportunities and responsibilities within the department.”
US legal firm
“Amal’s entrepreneurial prowess and business acumen continue to set her apart as a highly regarded emerging business leader in Nigeria. Over the years, she has participated in local and international business missions and attended various professional and leadership courses, conferences and seminars both locally and abroad.
“Widely regarded as a role model for the girl-child and women, especially in northern Nigeria, she has continued to mentor young leaders across her industry.”
Marianne Rutz, Founder & Principal Consultant, Rutz Consulting
FAQs
What is the Outsource to Nigeria Initiative (OTNI)?
The Outsource to Nigeria Initiative (OTNI) is a private sector initiative aimed to establish Nigeria as a unique destination for Business Process Outsourcing (BPO) and IT-enabled Services (ITES). It showcases the country’s unmatched talent pool and scale with cost-effective pricing.
Through OTNI, world-class BPO regional centers of excellence will be established across Nigeria’s six geopolitical zones. These centers will provide plug-and-play solutions for international and domestic BPOs, enabling them to operate with ease.
Promoted by Outsource Global, this initiative is poised to generate millions of job opportunities in Nigeria through provision of excellent global BPO and ITES services.
OTNI is constituted by the Office of the Vice President of Nigeria (government anchor), Outsource Global (private sector driver) and Worknation (OTNI’s digital platform)
How can I register as a foreign investor in Nigeria?
OTNI provides support in regards to provision of talent, recruitment support, fully managed back office support and infrastructure support to BPO’s. At this level, BPO’s do not need to be registered as a legal entity within Nigeria. They can simply make use of the resources provided by the initiative.
Through this method investors will not be subject to VAT or any other taxes.
If foreign investors want to register a legal entity, they can do so through OTNI, which provides comprehensive guidance on the registration process. This includes: assistance with legal and regulatory requirements; information on available incentives and opportunities in the Nigerian BPO sector; direct support from dedicated teams to ensure a seamless setup, including entity registration, licensing and compliance with local laws;continuous support post-registration to help investors navigate any operational or bureaucratic challenges.
What tax incentives do you offer to foreign investors?
Incentives for foreign investors in Nigeria include:
- Corporate tax coverage: a favorable tax environment where corporate taxes are minimized or fully covered for certain sectors.
- Cost advantages: Nigeria offers a highly cost-effective environment with competitive labor costs and operational expenses.
- Employment generation incentives: The government offers incentives for creating jobs, particularly in the BPO and tech sectors.
- BPO facilities across 6 geopolitical zones: Investors can access fully equipped, government-supported facilities in various locations across Nigeria.
- Infrastructure Support: High-quality infrastructure, including reliable power, internet, and technology, to meet BPO demands.
- R&D and training incentives: Investors can take advantage of funding for research, training, and workforce development initiatives.
How are investors supported by OTNI?
OTNI offers tailored support to meet the unique needs of each investor, including:
- Access to skilled talent: A large pool of highly trained professionals ready to meet the demands of BPO operations.
- Recruitment support: Assistance with finding, training and onboarding the right talent, customized for your business requirements.
- Managed back office services: Comprehensive solutions for managing back-office functions such as payroll, HR and compliance, allowing you to focus on core operations.
- Infrastructure support: Provision of both physical (office space, equipment) and technological (software, internet) infrastructure necessary for optimal business operations.
- Company registration: Step-by-step support through the legal process of establishing a BPO entity in Nigeria, ensuring compliance with local regulations.
What sorts of aftercare services do you provide?
After registering, investors can enjoy continuous support to ensure smooth operations, including:
- Fully managed back office: Support with ongoing operations such as payroll, HR management, compliance, and regulatory updates.
- Business development support: Guidance on expanding operations and navigating the Nigerian market.
- Networking and partnership opportunities: Assistance in building local partnerships, accessing government programs and participating in industry events.
Do foreign investors receive any special visa benefits?
The initiative simplifies the visa process for foreign investors by:
- Visa on arrival: Assistance with obtaining a Visa on Arrival for quick entry into Nigeria.
- Work visas and extensions: End-to-end management of work visa applications, including extensions as needed.
- Application management: The initiative handles the application process, ensuring all necessary documentation is completed and submitted on behalf of the investor.
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