Nigeria climbs global outsourcing rankings due to low labour costs
Nigeria’s growing reputation as a top outsourcing destination is being driven by its low labour costs and expanding talent pool, according to a new report. The study, compiled by Ataraxis Management, ranked the country among the world’s most competitive outsourcing markets. The report highlights how Nigeria’s cost competitiveness and skilled workforce are attracting global firms. It also points out both the opportunities and challenges facing Nigeria in the outsourcing sector.
TLDR
- Nigeria was ranked sixth globally out of 193 countries in the Global Outsourcing Talent Index by Ataraxis Management.
- The report credits Nigeria’s high score to its low labour costs, English proficiency, and a growing pool of skilled workers.
- Seven African countries, including Nigeria and South Africa, are among the world’s top 25 outsourcing destinations.
- The outsourcing market is expanding, with the business process outsourcing sector estimated at $328.37bn in 2025 and projected to reach $695.77bn by 2033.
- Despite strong potential, the report notes that infrastructure gaps and data security concerns remain challenges for Nigeria’s outsourcing industry.
