The Boston Consulting Group has opened an office in the Nigerian city of Lagos, its fourth in Africa. The country is currently in dire need for infrastructure upgrades and development; the firm will seek to win infrastructure contracts on the local and national level – and has an ambition to grow to more than 60 staff by 2020.
Nigeria is one of the world’s fastest growing countries in the world, its 2013 population of 173 million is set to grow by a 100 million by 2030. Lagos is Nigeria’s largest city – the conurbation of Lagos is, by unofficial estimate, home to more than 20 million. Lagos is also one of the richest cities in Africa, and boosts a strong financial sector – home to most of Nigeria's commercial banks, financial institutions, and the headquarters of major corporations.
Following the large drop in the price of oil, Nigeria has seen its recent growth spurt – of more than 6% annually – stymied. Good prospects remain, however, the country is in dire need of improvements to infrastructure. Power supply continues to create headaches for its burgeoning manufacturing industry – Lagos experienced an average of 6 power outages per day with only about 3.5 hours of electricity per day – while transport facilities, water supply and waste management facilities infrastructure, where it exists, is aging.
As part of its global expansion, The Boston Consulting Group recently announced it has opened an office in Lagos. The firm is particularly interested in supporting infrastructure projects in Nigeria and the region. The firm will seek to win business from Nigeria’s federal and state governments, as well as in the private sector, for advisory work on the development of infrastructure. In addition, the firm will seek to provide global clients, including energy, healthcare, finance and consumer goods companies, on investment opportunities in the country.
The office, which today has 15 employees, has an ambition to grow to more than 60 by 2020. The firm will be looking to up its revenue by 20% annually in that period. Pascal Cotte, BCG’s Chairman for Western Europe, South America and Africa says: “This is the right time to invest in Nigeria, We want to grow, almost regardless of the day-to-day volatility, which there’ll be a lot of. The oil crisis is a perfect opportunity for Nigeria to move forward.”
Luis Gravito, senior partner at BCG, adds: “The opening of the office in Lagos reflects our confidence in Nigeria’s future and our commitment to playing a role in the country’s long-term success. Nigeria’s challenges 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 fulfil their potential.”
Lagos is BCG’s fourth hub in Africa. Other offices are based in Johannesburg (South Africa), Casablanca (Morocco) and Luanda (Angola). The move follows recent office openings in Lima, the capital of Peru, and Denver, US. Last year McKinsey opened its seventh office on the African continent in Nairobi, Kenya – it too has an office in Lagos.