Unemployment is a huge problem in Nigeria, the last uncontroversial rate
from the National Bureau of Statistics (NBS) for 2011 shows 23.9% of
the population is unemployed. However, unemployment amongst the youth is
much higher. This dire situation makes it imperative for
government and citizens to seek viable solutions to this problem. This
article is my contribution in this regard and it focuses on Business
Process Outsourcing (BPO) as a means towards generating employment in
Nigeria.
According to Wikipedia, Business Process Outsourcing
(BPO) is a subset of outsourcing that involves the contracting of the
operations and responsibilities of a specific business process to a
third-party service provider.
Statista estimates that the global market size of business process outsourcing in 2014 amounted to 28.5 billion U.S. dollars.
This
business has huge potential for creating hundreds of thousands to
millions of jobs in Nigeria if the government implements the appropriate
policies and enters into partnership with the private sector including
foreign investors to create tech hubs.
The kinds of jobs that
would be created include: call center agents, data entry officers and
analysts. Nigeria's Information Communication Technology (ICT) sector
has grown astronomically since the introduction of GSM in 2001 and the
country now has 100% telephone penetration according to the National
Communications Commission (NCC) meaning that virtually every Nigerian
has access to a phone and as technology advances; the skill set of users
keeps improving including many educated but unemployed youths.
By
creating tech hubs that benefit from tax breaks and stable electricity
supply from off-grid Independent Power Plants {IPPs), the government can
easily create jobs to reduce the alarming rate of unemployment in
Nigeria. If each tech hub has at least 1,000 workstations, employees
could work 6-hour shifts meaning one workstation can accommodate 4
employees in a day.
100 tech hubs could be open across the
country with Lagos, Abeokuta, Ibadan, Port Harcourt, Calabar, Enugu,
Onitsha Owerri, Abuja, Kano, Kaduna and Jos hosting them in the first
phase. This could be expanded to ensure that there is at least 1 tech
hub in every state of the federation within a year.
Training
would be done to bring job applicants to the standard required to do
these jobs. With 4,000 jobs created at every tech hub multiplied by 100,
we have 400,000 direct jobs created with about 100,000 related jobs to
be created as well from the process of building, maintaining and
sustaining the tech hubs. This is an estimate for just the first year,
in 4 years, 2 million jobs could be created as the industry expands and
services are provided to foreign companies.
This idea is viable
and feasible as countries like India and The Philippines have benefitted
from BPO, I hope the in-coming government of General Muhammadu Buhari
(Rtd.) will work towards implementing or at least modifying it as it
seeks to deliver new jobs to the unemployed which is one of its key
campaign promises to Nigerians.
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