Lagos, Ogun secure N1.74tn investments, others attract N252bn

Lagos and Ogun attracted N1.74tn in industrial investments between 2024 and 2025, accounting for 87.32 per cent of the total investment across 36 states, exclusive data obtained from the Manufacturers Association of Nigeria and analysed by The PUNCH show.

The remaining 34 states attracted just N252.23bn, representing 12.7 per cent of total industrial investment during the two-year period.

The concentration of investment in Lagos and Ogun is a testament to the continued dominance of the two states as Nigeria’s main manufacturing corridor, driven largely by their large consumer market, access to ports and proximity to major commercial centres, according to economists.

Why Lagos, Ogun?

Lagos, Nigeria’s biggest economy, has a Gross Domestic Product of $259.75bn based on Purchasing Power Parity and a population of about 20 million.

The state also has access to major maritime gateways, including the Apapa, Tin Can Island, and Lekki ports, as well as local and international airports.

Its relatively developed business ecosystem has also helped attract private investment. The Lagos State Security Trust Fund, for instance, receives about N1.8bn in private and corporate donations, supporting security efforts in the state.

“Lagos is proof that Africa’s growth story is real. It is proof that enterprise can move faster than expectations and that young people with ideas can build globally competitive companies,” Commonwealth Secretary-General Shirley Botchwey said at the opening of Invest Lagos 2026 in June.

Ogun has benefited from its proximity to Lagos, with major industrial clusters developing around Agbara, Igbesa, Ota and Sango-Ota.

Between 2014 and 2020, manufacturers invested N3.35tn in Nigeria, with Ogun accounting for N1.68tn, or 50.16 per cent, while Lagos attracted N928bn, representing 27.7 per cent, according to the data.

Ogun’s investment advantage has been linked partly to the availability of land for industrial expansion and tax incentives.

Seventy manufacturing companies were established in Ogun State during the first four-year tenure of former governor Ibikunle Amosun, a figure that has remained unmatched, according to the data provided.

Companies including Fidson Healthcare, May & Baker, Pure Chemicals, Eagle Packaging, Nycil Limited, Dufil, Flour Mills of Nigeria, Unilever and Jaro Industries established operations in the state during the period.

Other states struggle

The concentration of manufacturing investment in Lagos and Ogun also reflects the infrastructure and logistics challenges facing other parts of the country.

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Experts said the absence of functional seaports in many states increases the cost of moving imported raw materials and finished goods, making locations farther from Nigeria’s major ports less attractive to manufacturers.

They also called for investment in existing ports, including improvements in their capacity and depth, to reduce logistics costs and spread industrial investment across the country.

Insecurity is another constraint. Several states continue to contend with kidnapping, banditry and other forms of insecurity, adding to the operating costs and risks faced by businesses outside the Lagos-Ogun industrial corridor.

Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, said Lagos and Ogun have a clear advantage because of their large market and proximity to ports.

“Lagos is the commercial capital of the country. Even people from other West African countries come to Lagos to buy. So, there is a huge market advantage that the Lagos-Ogun axis has.

“The second edge is the ports. Even if you are bringing in raw materials or exports, it is much easier if you are close to the ports. Those are the two major advantages.”

Yusuf said Nigeria’s weak logistics infrastructure also encourages manufacturers to locate close to their markets and ports.

“If the rail system is working well, you can set your factory anywhere. If you look at the state of the roads and you need to move goods in bulk, you have to look at proximity to your ports and your market.

“Again, Lagos is the financial hub for the West African subregion. When you talk about issues of finance for your business, Lagos is there for you,” he said.

A consultant economist and former Central Bank of Nigeria analyst, Nonso Ihuoma, also attributed Lagos’ advantage to its geographical location and access to seaports.

“Lagos is located on the seacoast, and it is the only state with really functional seaports working to optimal capacity. Calabar and Port Harcourt aren’t really working.

“Lagos has that advantage that makes imports cheaper for businesses. If your factory is located in Asaba, you have to spend a lot on logistics to get to the ports. Ogun is just taking advantage of its proximity to Lagos.”

Ihuoma said the Federal Government needed to develop ports in other parts of the country and create incentives that would encourage manufacturers to locate outside Lagos and Ogun.

“Government should open up seaports in other areas and invest in their depths. The state governments can make deliberate policies to attract investors by having a conducive environment to attract investors. In Kano, the government spoke about the dry ports. It gives you an advantage if you are a state.”