Economy
Expert Highlights Benefits of Business Process Services
**Tasks Nigerian Firms to Embrace System
By Modupe Gbadeyanka
Nigerian companies have been advised to see the urgent need to embrace the Business Process Services (BPS) because they are well positioned to enjoy the benefits of this system.
One of the top shots at Accenture FMCG, Mr Ololade Raji, noted that Nigerian firms can plug directly into the delivery machine of an experienced business process services provider to enable businesses to leapfrog competitors and drive business value – rather than being a back-office function.
Mr Raji said there’s a golden opportunity for Nigerian companies – one that turns their delay in investing in outsourcing and shared services into a unique strength.
According to him, the world of business process outsourcing (BPO), broadly defined, has undergone multiple incarnations. Pure facilities management preceded data and infrastructure outsourcing; thereafter came application support.
He said the business world was now in a new era, the business process support (BPS), which allows an external partner to manage everything from finance, to HR, sales support, credit and collections, as well as digital marketing.
Mr Raji argued that local companies have been reluctant to rely on third-party delivery of key services – in many cases due to fears around loss of control, where there is a legacy thinking of ownership equalling control.
That said, Nigeria has not been left untouched by traditional BPO – the application and IT areas have matured more rapidly over the past five years, nonetheless only one conglomerate has taken a bold BPO step in Nigeria, he said.
“Going forward, however, as we begin to see major moves towards drivers such as As-a-Service, increased automation and artificial intelligence, for forward-thinking Nigerian companies, leapfrogging competitors is going to be all about taking advantage of those next-generation capabilities today,” the business expert said.
A fundamental shift from BPO to BPS
Once, outsourcing meant taking as many people as possible and setting them up in a delivery centre. That is changing. A combination of the on-tap liquid workforce, robotics, access to industry expertise, cloud technology and artificial intelligence – that’s where the sphere is headed. Fixed costs are declining steeply; you now buy services as required. Digital is remaking outsourcing – ‘outsourcing’ as a term in fact is no longer accurate. It’s all about business process services and the way BPS enables more effective, intelligent decision making.
There are more exciting changes. Whereas cost reduction once lay at the core, the key driver is now business outcomes – selling more products, improving account usage and increasing revenue. Another relates to a mindset shift.
A service such as finance or procurement – when managed by an external partner – is now no longer simply a back-office process.
Analytics function becomes capable of shaping how a business thinks about itself. Utilizing an expert service provider means that those in both middle and upper management are free to think more strategically, Mr Raji noted.
He emphasised that, “Given the benefits, it’s hard to understand what’s been preventing companies in Nigeria from taking the plunge, although lingering fears around the ownership-control continuum may continue to play a key role.
“At first blush, it appears to some that loss of ownership of a function means loss of control over it. In fact, the converse is often true – particularly in the sense that a more arm’s-length relationship often results in better decision making.
“Interestingly, utilizing an expert provider like Accenture can give you greater control through deep expertise and a commercial arrangement giving committed performance and business outcomes.”
The value of going direct
Mr Raji further stressed that “companies in Nigeria will no doubt begin to increasingly realise the value and gains business process services enable – fixed costs decline as services are bought as needed; migration into cloud platforms powers both scalability and ease of access.
“The liquid workforce means high skill at reduced, flexible cost. Moreover, there are the benefits made possible not only by automation, but increasingly, by cognitive computing and artificial intelligence. The list goes on.”
He averred that as the drive around efficiency, flexibility and reactivity reshape the global business landscape, successful companies will need to realise operational efficiencies and access the strategic insights made possible by expert partners. It just so happens that Nigerian companies may be uniquely well positioned to do so.
Crucially, having largely side-stepped the shared services model, Nigerian companies are now better positioned to take a ‘long-jump’ approach to BPS: moving straight from in-housed disparate functions to plugging directly into an expert partner’s value delivery machine.
Many businesses in developed economies will, by contrast, have undergone a longer, ‘triple-jump’ process, having worked on a shared services basis in between, and endured the associated restructuring and upheaval.
By Adedapo Adesanya
Nigerian businessman and chief executive of Dangote Industries Limited, Mr Aliko Dangote, has unveiled plans for a new phase of investments and acquisitions as the conglomerate pushes towards its target of generating $100 billion in annual revenue by 2030.
Mr Dangote disclosed this while receiving a delegation of senior executives from global investment banking and financial services firm Goldman Sachs, led by co-chief executive of Goldman Sachs International and Global Co-Head of Investment Banking, Mr Anthony Gutman, during a tour of the Dangote Petroleum Refinery & Petrochemicals and Dangote Fertiliser Limited complex in Lagos.
Speaking after the visit, Mr Dangote said the refinery and associated industrial facilities underscore the transformative impact of long-term investment in Africa, stressing that the group’s ambitions extend beyond its current strategic plan.
“No matter how we try to explain what we have built, you cannot fully appreciate it until you see it. But this is only the beginning. We need to look beyond 2030.
“The next phase of our journey will include new investments and acquisitions as we continue to scale the business,” he said.
He added that detailed internal modelling had reinforced management’s confidence that the Group’s target of generating $100 billion in annual revenue by 2030 was achievable.
According to him, the projections were based on conservative assumptions and had strengthened the company’s conviction to pursue an even more ambitious long-term growth strategy.
Mr Dangote also revealed that the strong participation of employees in the refinery’s recent private placement reflected growing internal confidence in the company’s long-term strategy and future prospects.
The Goldman Sachs delegation, after an extensive tour of the 700,000 barrels-per-day refinery, described the project as an extraordinary achievement.
“It is extraordinary what Mr Dangote and the whole organisation have achieved. The ambition, the scale of the project, the quality of the project and the culture of the people is very impressive,” the executives said.
According to a statement issued by Dangote Group on Friday, the delegation was led by Mr Anthony Gutman and included Mr Adib N. Zouein, Co-Head of EMEA Emerging Markets Regional Sales and Head of the Middle East and North Africa region for Global Banking & Markets Public; Mr Ryad Yousuf, Global Head of FICC Sales Strats and Structuring; and Mr Jimi Adesanya, Head of Sub-Saharan Africa Sales (excluding South Africa).
The visitors were received by Dangote; Group Vice President, Oil & Gas, Mr Devakumar Edwin; Managing Director and Chief Executive Officer of Dangote Petroleum Refinery & Petrochemicals, Mr David Bird; Group Executive Director, Oil & Gas, Ms Fatima Aliko Dangote; Chief of Staff to the President/CEO, Ibrahim Dikko; Group Chief Branding and Communication Officer, Mr Anthony Chiejina; Group Chief Economist, Mr Hassan Mahmud; Group Chief Strategy Officer, Mr Aliyu Suleiman; and Head of Administration, Dangote Petroleum Refinery & Petrochemicals, Mr Musa Bala, among other senior executives.
By Adedapo Adesanya
The Senate Public Accounts Committee has heard that Nigeria spent N1.16 trillion on fuel subsidy in 2021, while N1.20 trillion was deducted from federation crude oil sales proceeds during the same period.
The disclosure came from the Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Mr Mohammed Bello Shehu, during the committee’s ongoing investigation into the 2021 to 2023 Nigeria Extractive Industries Transparency Initiative (NEITI) audit reports on the oil and gas sector.
According to the commission, crude and petroleum product losses cost N16.2 billion, pipeline repairs accounted for N22.05 billion, while strategic stock holding attracted N6.75 billion.
The revelations come against the backdrop of Nigeria’s long-running fuel subsidy regime, which successive governments maintained to keep the pump price of petrol artificially low despite mounting fiscal pressures.
Over the years, subsidy payments consumed trillions of Naira, significantly reducing revenues available to the three tiers of government and contributing to widening budget deficits.
The issue reached a turning point in May 2023 when President Bola Tinubu announced the removal of fuel subsidy during his inauguration speech, declaring that “fuel subsidy is gone.” The decision followed years of concerns over the rising cost of the programme, allegations of fraud, and repeated recommendations by fiscal authorities and international financial institutions that the subsidy had become unsustainable.
The removal triggered a sharp increase in the pump price of Premium Motor Spirit (petrol), leading to higher transportation and living costs across the country. In response, the federal government introduced a series of palliative measures, including cash transfers, support for mass transit, and wage-related interventions, while arguing that savings from the subsidy would be redirected to infrastructure, education, healthcare, and other critical sectors of the economy.
The commission also argued that the current method of calculating the 13 per cent derivation fund undermines the constitutional intention of the policy.
Meanwhile, the committee stood down the Niger Delta Development Commission’s presentation until next Wednesday to allow lawmakers review its submission.
The committee also expressed displeasure over the absence of the Auditor-General of the Federation, warning that he must appear before lawmakers next Tuesday or face compulsory appearance through the constitutional powers of the National Assembly.
By Adedapo Adesanya
Businesses in the country expect the Naira to gradually appreciate against the US Dollar between now and January 2027, according to the Central Bank of Nigeria’s (CBN) July 2026 Business Expectations Survey Report released on Thursday.
The report showed that the Business Confidence Index (BCI) remained positive throughout the review period despite perceived macroeconomic challenges. It noted that all sectors expressed optimism about the economy, with the electricity, gas and water sector posting the highest Business Confidence Index of 59.4 points and the strongest expansion prospects for August 2026.
According to the report, “In July 2026, the Business Confidence Index was 5.7 points, reflecting continued optimistic sentiment among formal businesses.”
It attributed the positive sentiment mainly to increased demand (22.3 per cent), economic diversification (21.4 per cent), and improved access to finance (15.0 per cent). However, respondents identified inflation (27.7 per cent), energy-related challenges (23.4 per cent), insecurity (22.4 per cent), and heightened geopolitical uncertainties (16.5 per cent) as the major factors weighing on business confidence.
On the outlook by broad sector, the central bank said confidence remained positive across all sectors in July. The Industry sector recorded a modest improvement, with its index rising to 11.5 points from 10.5 points, while the Services sector increased to 3.6 points from 2.9 points.
By contrast, the Agriculture sector recorded a significant moderation, with its index falling to 3.4 points from 12.2 points.
Despite this, the apex bank said the six-month outlook remained upbeat, with confidence indices across all sectors indicating positive expectations over the review period.
On the macroeconomic outlook by region, the report noted a divergence in sentiment, with businesses in Northern Nigeria expressing stronger confidence than their Southern counterparts in July. Nevertheless, respondents across all regions maintained positive expectations for August.
