Nigeria’s outsourcing industry needs stronger government legislation and operational standards to curb unprofessional practices, protect workers’ welfare, and level the playing field for compliant operators, Phillips Outsourcing Managing Director, Olayemi Fadahunsi, said.

Fadahunsi said the growing importance of outsourcing to businesses and the economy makes it necessary for the government to set clear standards that distinguish professional operators from firms that cut corners, warning that inadequate regulation could undermine efforts to build a sustainable industry.

He also urged the government to ensure regulatory oversight extended across the industry, not just to established operators, to promote fair competition and consistent standards.

Speaking at the fifth edition of the Phillips Football Tournament, tagged “Goal Frenzy 2026”, held at Riverbank School, Oniru, Lagos, Fadahunsi said outsourcing companies had a responsibility to protect employees’ interests while helping client organisations improve efficiency and focus on their core businesses.

According to him, the sector contributes to the economy through activities including tax payments and pension remittances, making stronger institutional support necessary to sustain its growth.

“The business in Nigeria has now started to recognise the importance of outsourcing. Outsourcing contributes a lot to the Nigerian GDP,” he said.

He noted that although government agencies, including the National Pension Commission and the Industrial Training Fund, were working to support the industry, more was needed to ensure operators were held to consistent standards.

Fadahunsi said the government should strengthen its engagement with outsourcing companies to ensure all operators comply with the same requirements, rather than focusing regulatory attention on a few established firms.

Beyond regulation, he stressed the need for outsourcing companies to ensure workers earn salaries that meet their basic needs, adding that employee welfare remains an important part of the industry’s responsibilities.

“As much as we are supporting our clients and ensuring that they get value for money, we are also advocating for employees to ensure that they are not just having a salary, but they are having salaries that can take them home,” he said.

He said Phillips Outsourcing paid its employees at least the minimum wage and ensured it remitted pension contributions and taxes on their behalf.

According to him, the company also organises regular employee forums, provides training and operates e-learning platforms to improve workers’ skills and career development.

“We are not just managing them; we also ensure that they are growing,” he said.

Fadahunsi spoke against the backdrop of the company’s yearly football tournament, which brings together employees deployed to different client organisations to strengthen relationships, promote inclusion and improve their sense of belonging.

He said the initiative, which began in 2021, has become a way for employees working at different client locations to interact outside their regular work environments.

The 2026 edition featured 15 teams, 11 male and four female, marking the first time women participated in the competition.

He said including female teams reflected the company’s desire to ensure all employees felt recognised and connected to the organisation, regardless of where they were deployed.

He added that employees looked forward to the tournament each year, making it an important part of the company’s efforts to strengthen team spirit and employee engagement.

The men’s team won a cash prize of N600,000 and a trophy, while the same organisation, Fortebet, also won the women’s competition, receiving a cash prize of N300,000.

Looking ahead, he said the company hoped to expand the tournament beyond a one-day event and involve more clients as both the business and its workforce grew.

Also speaking, Phillips Consulting Limited Chief Operating Officer Olawanle Moronkeji described the tournament as an opportunity to promote work-life integration and recognise employees’ contributions beyond their daily responsibilities.

He said employee appreciation and team bonding could boost organisational performance, even when the benefits didn’t immediately show in financial results.

The Chairman of Phillips Consulting, Foluso Phillips, said the company’s commitment to protecting jobs and preparing workers for the future remained central to its outsourcing strategy as artificial intelligence reshaped the workplace.

He said the company’s outsourcing operations focus on helping client organisations manage people-related responsibilities while improving operational efficiency, adding that the rise of artificial intelligence has made continuous training and workforce development more urgent.