Nigeria's food, beverage, and tobacco industry emerged as the biggest recipient of manufacturing investment in 2025, attracting N375.03bn in fresh investment. This represents a 63.5% increase from N229.42bn recorded in 2024, according to data from the Manufacturers Association of Nigeria. The significant growth reflects the continued expansion of major manufacturers seeking to meet demand in Nigeria's large consumer market.
Several prominent 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 the firms investing in the sector. The non-metallic products industry ranked second with N280.12bn, driven largely by investments in cement and glass manufacturing. This indicates a diverse range of investments across various sectors in Nigeria.
The motor vehicle assembly sector attracted N170.8bn in investments, while the chemical and pharmaceutical sector received N123.61bn. Industrial plastics, rubber, and foam manufacturers invested N123.44bn, and the textile and carpet industry attracted N112.53bn. These figures demonstrate the breadth of manufacturing investments in Nigeria, with various sectors contributing to the country's industrial growth.
Total investment in 2025 stood at N1.33tn, with Lagos and Ogun states remaining the main destinations for manufacturing capital. The two states attracted N1.74tn in industrial investment between 2024 and 2025, accounting for 87.32% of the total investment recorded across Nigeria during the period. This underlines the dominance of the Lagos-Ogun corridor in Nigeria's manufacturing industry.
The remaining 34 states attracted only N252.23bn, representing 12.7% of the total investment. Lagos' large consumer market and access to major ports, such as Apapa, Tin Can Island, and Lekki, remain key reasons manufacturers prefer the state. Ogun has also benefited from its proximity to Lagos, with industrial areas like Agbara, Igbesa, Ota, and Sango-Ota becoming important manufacturing centers.
According to experts, the Lagos-Ogun axis benefits from both its large market and proximity to ports. Manufacturers must consider the cost of bringing in raw materials and moving finished products when deciding where to locate factories. 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 and infrastructure limitations, such as weak road networks and limited port access, also remain concerns for businesses, increasing the cost and risk of operating outside the main industrial corridor. Experts suggest that better ports, roads, rail infrastructure, and investment incentives would help attract more factories to other parts of Nigeria, promoting a more balanced industrial growth across the country.
Key points
- Food, beverage, and tobacco industry attracted N375.03bn in fresh investment in 2025.
- Lagos and Ogun states accounted for 87.32% of total investment recorded across Nigeria between 2024 and 2025.
- Infrastructure challenges and security concerns limit investments in states outside the Lagos-Ogun corridor.
