To Tackle Nigeria ‘s Forex Crisis, NEPC Turns To Services Sector Exports

…Targets $5bn Revenue Next Year

As the Federal Government battles to save the naira from further depreciation as a result of the drop in foreign exchange earnings, the Nigerian Export Promotion Council is targeting to generate the sum of $5bn for Nigeria through the export of services to other countries by next year.

The Executive Director/Chief Executive of the NEPC, Dr Ezra Yakusak gave the figure on Wednesday in Abuja during the first National Conference on Trade-in-Services in Nigeria.

The event organized by the NEPC, was held with emphasis on Outsourcing and IT-Enabled Services in Nigeria

The NEPC Boss said it is not in doubt that services sectors are a major part of the global economy, generating more than two-thirds of the global Gross Domestic Product (GDP).

According to him, the sector attracted over three-quarters of foreign direct investment in advanced economies, employing the most workers, and creating most new jobs globally.

Yakusak said the Outsourcing Industry has the capacity to boost human capital, drive the economy and bring about emerging technologies among others.

He listed some of these services outsourced to include financial, advertising, courier, customer support services, logistics, etc.

The NEPC Boss noted that the realization of the pivotal role of the services sector in the diversification of Nigerian export base, foreign exchange generation and creation of employment and incomes, motivated the NEPC to carve out the Trade in Services Unit in 2006 as the sole Unit responsible for issues of international trade in services.

In pursuant to this, he noted that the Council came up with initiatives to identify and highlight the potentials of exportable services in the sector that could be packaged and marketed regionally and internationally in a purposeful and holistic manner in collaboration with the stakeholders.

He added that it is also in appreciation of this fact that the Council collaborated with the Commonwealth Secretariat and developed a National Services Sector Export Strategy with four sectors identified as priority areas.

The sectors are Finance, Information Communication Technology (ICT), Entertainment (Music & Film), and Education.

He said, “You may wish to note that 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 labor cost, favorable time zone, and English proficiency make it an appealing location for business seekers to outsource certain tasks or functions.

“We are all aware of the economic distraction that came up after Covid-19 pandemic and the present Russia-Ukraine war which have tremendous effect on businesses globally. Such challenges however provides Nigeria with the Opportunity to be a global outsourcing destination.

“The National Conference on International Trade-in-Services in Nigeria is being organised in fulfilment of the mandate of the NEPC at educating and building capacity of the Nigerian Business Community.

“It will accordingly accord participants an opportunity to interact and tap into the wealth of wisdom of the resource persons with a view to broadening our horizon in the Services sub-sector with emphasis on Outsourcing and IT-Enabled Services.”

In a keynote address delivered at the event, the Permanent Secretary in the Ministry of Industry, Trade and Investment, Dr Evelyn Ngige, commended the NEPC for
organizing the event as it provides a unique opportunity to explore the
potential of outsourcing and information technology-enabled services (ITES) in Nigeria and chart a course towards realizing our ambitions.

Represented by the Director, Commodities and Export Department in the Ministry, Suleiman Audu, she said that Nigeria boasts of a large pool of educated and skilled professionals, including an english-speaking workforce, which is advantageous for english-language outsourcing services.

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

“Today, we gather here to explore the vast opportunities that lie before us, as we leverage our population of over 200 million and the high usage of Global System for Mobile Communication (GSM) to catapult Nigeria into a prominent position in the global outsourcing industry.

“To harness the opportunities presented by outsourcing and ITES, we must adopt a multi-faceted approach that encompasses several key areas. Allow me to emphasize these critical aspects that will shape our journey towards making Nigeria a global hub for outsourcing through the lens of four thematic areas that have shaped our current trade environment and will advance the interests of the outsourcing industry in Nigeria beyond 2023.

“Firstly, it is 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.

“Secondly, skills development is paramount to build a workforce capable of delivering high-quality services in the outsourcing and ITES sectors. We must align our education and training systems to the evolving demands of the industry. This includes equipping our youth with technical and digital skills, promoting cross-disciplinary knowledge, and encouraging ifelong learning. Collaboration between academia and industry stakeholders is crucial to bridge the skills gap and ensure that our workforce remains competitive in the global market

“Thirdly, robust infrastructure and digital connectivity are foundational pillars for the success of the outsourcing industry. We must invest in the development of reliable and high-speed internet infrastructure, advanced telecommunications networks, and modern data centers.

“This will enable businesses to operate seamlessly, ensuring uninterrupted service delivery and enhanced data security. Furthermore, we should explore opportunities to enhance last-mile connectivity, particularly in rural areas, to ensure inclusivity and access to opportunities for all Nigerians

“Fourthly, innovation and technology adoption are vital to our aspirations in the outsourcing and ITES sectors. Nigeria has a thriving technology ecosystem and a wealth of entrepreneurial talent. We must encourage innovation and entrepreneurship by providing support mechanisms such as incubators, accelerators, and funding opportunities.

“Embracing emerging technologies, such as artificial intelligence, machine learning, blockchain, and automation, will not only enhance our competitiveness but also position Nigeria as a global leader in providing cutting-edge outsourcing solutions.”

She also said there is need to focus on building strategic partnerships and collaborations both domestically and internationally.

“Collaboration with industry associations, professional bodies, and international organizations will facilitate knowledge sharing, best practices exchange, and capacity building engaging with other countries that have successfully developed their outsourcing industries can provide valuable insights and opportunities for collaboration, joint ventures, and knowledge transfer, ” she added.

Ngige said the goal of government is to make Nigeria a global outsourcing destination noting that ” We must prioritize data protection, privacy, and cybersecurity to build trust with international clients.”

Additionally, she said there is need to ensure that decent work conditions, fair labor practices, and social welfare mechanisms are in place to protect the rights and well-being of the workers employed in the outsourcing and ITES sectors.