Lagos and Ogun states have emerged as Nigeria's top destinations for industrial investments, attracting a combined total of N1.74 trillion between 2024 and 2025. This represents 87.32% of the total investment across the 36 states, according to data obtained from the Manufacturers Association of Nigeria and analysed by The PUNCH. The remaining 34 states attracted a total of N252.23 billion, representing 12.7% of the total industrial investment during the two-year period.
Economists attribute the concentration of investment in Lagos and Ogun to their large consumer market, access to ports, and proximity to major commercial centres. Lagos, Nigeria's biggest economy, has a Gross Domestic Product of $259.75 billion 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.
Lagos State has a relatively developed business ecosystem, which has helped attract private investment. The Lagos State Security Trust Fund, for instance, receives about N1.8 billion in private and corporate donations, supporting security efforts in the state. Commonwealth Secretary-General Shirley Botchwey praised Lagos as a testament to Africa's growth story, saying it is proof that enterprise can move faster than expectations and that young people with ideas can build globally competitive companies.
Ogun State 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 N3.35 trillion in Nigeria, with Ogun accounting for N1.68 trillion, or 50.16%, while Lagos attracted N928 billion, representing 27.7%. 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. 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.
Experts say 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 call 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 facing businesses outside the Lagos-Ogun industrial corridor. Several states continue to contend with kidnapping, banditry, and other forms of insecurity, adding to the operating costs and risks faced by businesses. Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, said Lagos and Ogun have a clear advantage due to their large market and proximity to ports.
Key points
- Lagos and Ogun states have attracted N1.74 trillion in industrial investments between 2024 and 2025.
- The concentration of investment in Lagos and Ogun is due to their large consumer market, access to ports, and proximity to major commercial centres.
- Experts call for investment in existing ports and improvements in logistics infrastructure to spread industrial investment across the country.
