Food, beverage firms lead Nigeria’s real investments with N375bn

Nigeria’s food, beverage and tobacco industry attracted N375.03bn in fresh investment in 2025, making it the biggest recipient of manufacturing investment during the year.

Investment in the sector jumped by 63.5 per cent from N229.42bn recorded in 2024, according to data from the Manufacturers Association of Nigeria.

The increase reflects continued expansion by major manufacturers as they seek to meet demand in Nigeria’s large consumer market.

Companies including Flour Mills of Nigeria, BUA Foods, Nestlé Nigeria, Dangote Sugar, Dufil, Cadbury Nigeria, CHI Limited, Unilever Nigeria and Honeywell Flour Mills were among firms investing in the sector.

The non-metallic products industry ranked second with N280.12bn, driven largely by investments in cement and glass manufacturing.

Motor vehicle assembly attracted N170.8bn, while the chemical and pharmaceutical sector received N123.61bn billion.

Industrial plastics, rubber and foam manufacturers invested N123.44bn, while the textile and carpet industry attracted N112.53bn.

Total investment in 2025 stood at N1.33tn. While the food and beverage industry led by sector, Lagos and Ogun remained the main destinations for manufacturing capital.

In 2024 and 2025, the two states attracted N1.74tn in industrial investment, accounting for 87.32 per cent of total investment recorded across Nigeria during the period.

The remaining 34 states attracted only N252.23bn, representing 12.7 per cent.

The figures underline the dominance of the Lagos-Ogun corridor in Nigeria’s manufacturing industry.

Lagos’ large consumer market and access to major ports remain key reasons manufacturers prefer the state.

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The Apapa, Tin Can Island and Lekki ports provide access to imported raw materials and export markets, while the state also has a large financial and commercial ecosystem.

Ogun has benefited from its location next to Lagos. Industrial areas such as Agbara, Igbesa, Ota and Sango-Ota have become important manufacturing centres.

The availability of land for factories and lower expansion costs compared with Lagos have also helped Ogun attract manufacturers.

Data from MAN showed that between 2014 and 2020, manufacturers invested N3.35tn in Nigeria.

Ogun received N1.68tn, representing 50.16 per cent of the total, while Lagos attracted only N928bn, or 27.7 per cent.

Manufacturers in other parts of the country face higher logistics costs because of weak road networks, limited port access and other infrastructure challenges.

Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Muda Yusuf, said the Lagos-Ogun axis benefits from both its large market and proximity to ports.

He noted that manufacturers must consider the cost of bringing in raw materials and moving finished products when deciding where to locate factories.

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

He said developing ports in other parts of the country could reduce the cost of moving goods and encourage manufacturers to invest outside Lagos and Ogun.

Security challenges in some states also remain a concern for businesses, increasing the cost and risk of operating outside the main industrial corridor.

Experts said better ports, roads, rail infrastructure and investment incentives would help attract more factories to other parts of Nigeria.