Goldmine Waiting to be Harnessed

Nigeria, often recognised for its oil and agricultural exports, is sitting on an untapped goldmine—the services sector.

From financial services to digital technology, creative industries, and professional consulting, Nigeria has a vast pool of skilled professionals whose expertise can be exported to the world.

Yet, the country has not fully optimised this potential. If properly harnessed, Nigeria’s service exports could rival traditional commodities in driving economic growth, creating jobs, and positioning the country as a global hub for knowledge-based industries.

Where We Are: The Current State of Nigeria’s Services Exports

Nigeria’s services sector contributes significantly to its Gross Domestic Product (GDP), accounting for over 50 per cent of the economy.

However, its contribution to export earnings remains disproportionately low. While countries like India, the Philippines, and South Africa have built thriving service export industries—leveraging information technology, outsourcing, and financial services—Nigeria has lagged behind due to regulatory bottlenecks, poor infrastructure, and a lack of coordinated policy frameworks.

Nonetheless, several Nigerian service-based industries have begun making a mark globally:

• Financial and Fintech Services: Nigeria’s fintech ecosystem, with companies like Flutterwave, Paystack, and Interswitch, has gained international recognition, facilitating cross-border payments and financial inclusion across Africa.
• Creative and Entertainment Industry: Nollywood, Afrobeats, and fashion are global phenomena, with Nigerian artists, filmmakers, and designers commanding international audiences.
• IT and Digital Services: Nigerian software developers, digital marketers, and IT professionals are increasingly being hired by global firms, particularly in remote work and gig economy roles.
• Education and Professional Services: Nigerian universities, training institutions, and consulting firms are expanding their reach, providing professional services across Africa and beyond.
• Despite these successes, Nigeria’s services sector is still underutilised as an export driver. Several challenges—including regulatory restrictions, inadequate digital infrastructure, difficulty accessing global markets, and high costs of doing business—continue to limit its full potential.

Where We Can Be: Unlocking the Full Potential of Services Exports

If Nigeria strategically develops its services export sector, it could become a dominant player in the global economy. Here’s how:

1. Strengthening Trade Agreements and Policies

• Nigeria must fully integrate into global and regional trade agreements, such as the African Continental Free Trade Area (AfCFTA), to ease the movement of services across borders.
• Bilateral and multilateral agreements should be negotiated to grant Nigerian professionals easier access to work and trade in international markets.
• The government must create policies that encourage freelancing, remote work, and digital entrepreneurship, ensuring Nigerian professionals can participate seamlessly in the global gig economy.

2. Investing in Digital Infrastructure

• Expanding broadband internet access nationwide will enable more Nigerians to work remotely and provide services to international clients.
• Establishing tech hubs and innovation centres will enhance Nigeria’s global competitiveness in IT and digital services.
• Strengthening data protection and cybersecurity regulations will build trust in Nigerian digital services and encourage foreign firms to engage with local talent.

3. Positioning Nigeria as a Global Hub for Outsourcing

• Nigeria can follow the example of countries like India and the Philippines, which have built massive Business Process Outsourcing (BPO) industries by offering customer service, software development, and back-office operations to global companies.
• Call centres, digital content creation, software development, and fintech services could become primary export earners if Nigeria builds the proper infrastructure and offers incentives to global firms.

4. Expanding Education and Professional Certification for Global Recognition

• Universities and training institutions should align their curriculums with global industry standards, ensuring Nigerian graduates meet international job market requirements.
• Establishing globally recognised certification programs for Nigerian professionals will make them more attractive for international employment and freelance opportunities.

5. Supporting the Creative and Entertainment Industry for Global Markets

• Nigerian film, music, and fashion industries must fully integrate into global distribution networks.
  Strengthening intellectual property laws will protect Nigerian creatives from exploitation and ensure they get fair compensation for their work internationally.
• Government-backed grants and incentives for exporting creative content can further boost the sector.

6. Reducing Regulatory Barriers and Expanding Payment Systems

• Simplifying visa processes for Nigerian professionals and businesses to work internationally will enhance the country’s reputation as a global service provider.
• Addressing foreign exchange restrictions will allow Nigerian service providers to receive international payments with fewer barriers.
• Strengthening digital payment platforms will ease cross-border transactions for freelancers and businesses offering services abroad.

The Road Ahead: A Strategic Shift Towards Services Exports

Nigeria stands at a crossroad. While oil and commodities have long dominated its exports, the future lies in knowledge-based and technology-driven industries.

With the right policies, infrastructure, and strategic investments, Nigeria can become a leading exporter of services in finance, technology, education, entertainment, outsourcing, and professional consulting.

ALSO READ: Nigeria and the Relevance of ‘Export for Survival’

The government, private sector, and educational institutions must collaborate to position Nigeria as Africa’s hub for services exports, tapping into a multi-billion-dollar global market.

If fully harnessed, the services sector has the potential to not only drive economic diversification but also create millions of jobs, uplift Nigeria’s global standing, and secure long-term prosperity for its people.

The time to act is now.