Global consulting firm, Boston Consulting Group has set up a Lagos office, which will be its 85th office globally.
The consulting firm said that its aim is to provide custom-made, impact-driven solutions to clients, rather than take a one-size-fits-all approach.
Its entry into Nigeria is for the long term and it will attract top local talent who understand the environment. BCG aims to grow its Nigeria business by 15% to 20% every year.
BCG’s launch coincided with the release of its report – Unlocking Nigeria’s Potential, in which it used its Sustainable Economic Development Assessment, a diagnostic tool to provide perspective on the well-being of the country’s citizens.
The report says that, though Nigeria is wealthy when compared to its peers, the conversion of its wealth to wellbeing is where it performs poorly.
The report identifies 5 areas in which Nigeria falls severely behind:
Low stock of Infrastructure which is valued at 35% of GDP (compared to an average of 70% for large economies). There are major deficits in the electricity grid, road network, and water supply. Nigeria’s investment in its infrastructure is low, standing at 3% of GDP annually between 2009 and 2013.
A sub-par education system which limits the country’s workforce is another area of deficit. Nigeria’s quality of education is below the average of the sub Saharan Africa peer group. BCG is of the opinion that Nigeria needs to focus on particular technical and vocational training to build stronger connections between the education and job market.
Governance and Civil Society
Nigeria also falls behind in governance and civil society. To improve in this area, the consultancy says Nigeria needs to change its approach to regulations to favour deregulation and harnessing of market forces whenever possible.
There are also significant health challenges facing the country. Child and infant mortality rates are among the highest in the world. Life expectancy stands at just 52 years. Health inequity remains a deep rooted problem.
Nigeria is a nation of entrepreneurs
According to Hans-Paul Bürkner, the Chairman of BCG, “Nigeria’s challenges are significant, but they are more than matched by the talent and entrepreneurial drive of its people. However, the Nigerian people need better infrastructure, health, education, and institutions to be able to translate their energy and drive into prosperous personal lives and a prosperous society”.
“Investment in infrastructure can have a ten-fold yield in the economy”, says Miguel Pita, Partner and Managing Director of BCG’s Lagos office.