Lagos and Ogun attracted N1.74 trillion in industrial investments between 2024 and 2025, accounting for 87.32% of the total industrial investment recorded across Nigeria’s 36 states during the two-year period, according to data obtained from the Manufacturers Association of Nigeria (MAN).
An analysis of the data by The PUNCH showed that the remaining 34 states attracted N252.23 billion, representing about 12.7% of the total. The figures highlight the concentration of Nigeria’s manufacturing investment around the Lagos-Ogun industrial corridor.
The concentration has been linked by economists to the two states’ access to major markets, ports, transport connections and established industrial clusters.
Lagos and Ogun dominate industrial investment
The N1.74 trillion attracted by Lagos and Ogun represents the overwhelming majority of the industrial investment captured in the MAN data for 2024 and 2025.
The remaining 34 states collectively attracted N252.23 billion over the same period, according to the figures obtained by The PUNCH.
The figures do not mean that no industrial investment took place elsewhere in Nigeria. Rather, they show that the investment captured in the dataset was heavily concentrated in the two neighbouring South-West states.
Lagos and Ogun have developed into an interconnected manufacturing and commercial corridor, with industrial activity extending from Lagos into locations such as Agbara, Ota, Igbesa and Sango-Ota in Ogun State.
Why companies continue to choose Lagos
Lagos has several characteristics that make it attractive to manufacturers and other businesses.
The state provides access to a large consumer market and major transport infrastructure, including the Apapa and Tin Can Island ports and the Lekki Deep Sea Port. It also has international and domestic airports that connect businesses to other parts of Nigeria and overseas markets.
The state’s established financial and commercial ecosystem is another factor cited by economists.
Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise, said Lagos benefits from both its large market and its proximity to ports.
He also pointed to the city’s role as a commercial centre for the wider West African region.
For manufacturers that depend on imported raw materials or export finished products, being close to major maritime gateways can reduce the distance goods have to travel by road before reaching factories or customers.
Ogun benefits from proximity to Lagos
Ogun’s industrial growth is closely connected to its geographical position next to Lagos.
The state has large areas available for industrial development and has attracted manufacturing activity around Agbara, Ota, Igbesa and Sango-Ota.
The PUNCH’s analysis of the MAN data also showed that between 2014 and 2020, manufacturers invested N3.35 trillion across Nigeria. Ogun accounted for N1.68 trillion, or 50.16%, while Lagos attracted N928 billion, representing 27.7% during that period.
The historical figures illustrate that the Lagos-Ogun concentration predates the latest 2024-2025 investment data.
Ogun has also used land availability and investment incentives as part of its efforts to attract industrial businesses, according to the report.
Industrial clusters have developed across Ogun
The growth of industrial activity has produced several manufacturing clusters in Ogun.
Companies in pharmaceuticals, chemicals, food processing, packaging and other industries have established facilities in the state.
The PUNCH reported that companies including Fidson Healthcare, May & Baker, Pure Chemicals, Eagle Packaging, Nycil Limited, Dufil, Flour Mills of Nigeria, Unilever and Jaro Industries have established operations in Ogun.
The concentration of businesses can create advantages for manufacturers because companies can share access to suppliers, workers, transport networks and other commercial services.
It can also encourage supporting businesses such as logistics companies, equipment suppliers and industrial service providers to establish themselves close to major manufacturing centres.
Other states face logistics constraints
The investment figures also highlight the infrastructure challenges facing manufacturers located farther from Nigeria’s major commercial gateways.
Economists cited by The PUNCH said the limited availability of functional seaports in other parts of the country can increase transportation costs for companies that import raw materials or export finished products.
Manufacturers located far from major ports may have to move goods longer distances by road, increasing logistics expenses and exposure to transport delays.
Nonso Ihuoma, a consultant economist and former Central Bank of Nigeria analyst, said Lagos has an advantage because of its coastal location and access to functioning seaports.
He argued that manufacturers located farther inland can face significantly higher logistics costs when moving goods to and from ports.
Infrastructure could influence future investment patterns
The concentration of industrial investment raises questions about how Nigeria can encourage manufacturing growth beyond the Lagos-Ogun corridor.
Economists cited in the report called for investment in ports outside Lagos, including improvements to their capacity and depth.
They also pointed to the need for better transport infrastructure that could make it cheaper for manufacturers to operate farther from Nigeria’s main commercial centres.
A stronger rail and road network could potentially reduce the importance of locating factories immediately next to ports because raw materials and finished goods could be transported more efficiently.
Yusuf similarly linked the concentration of factories to Nigeria’s logistics infrastructure, arguing that manufacturers have strong incentives to remain close to both their markets and ports when bulk transportation is expensive.
Security is another consideration
Security conditions can also influence where companies establish factories.
The PUNCH reported that insecurity, including kidnapping and banditry in several parts of Nigeria, adds to the operational risks and costs faced by businesses outside the Lagos-Ogun corridor.
Manufacturing facilities require reliable access for employees, suppliers and transport operators.
Where businesses face disruptions to road transportation or additional security expenses, the cost of operating can increase.
This can influence investment decisions alongside factors such as electricity, taxation, land prices, labour availability and market access.
Concentration brings both benefits and risks
The strong concentration of industrial investment around Lagos and Ogun can support the development of an efficient manufacturing ecosystem.
Businesses benefit from established supply chains, a large pool of workers, financial services, transport infrastructure and access to major consumers.
However, concentrating a large share of industrial activity in one geographic corridor can also place additional pressure on roads, ports, housing, electricity, water and other infrastructure.
It also means that disruptions affecting the Lagos-Ogun corridor could have consequences for a significant portion of Nigeria’s manufacturing activity.
The latest figures therefore highlight not only the attractiveness of the two states but also the geographic imbalance in industrial investment.
What the investment figures mean for Nigeria
The N1.74 trillion recorded in Lagos and Ogun during 2024 and 2025 shows the continued importance of the South-West industrial corridor to Nigeria’s manufacturing sector.
The figures also point to a broader policy challenge: how to make other parts of Nigeria sufficiently attractive for manufacturers without undermining the advantages that have already developed around Lagos and Ogun.
Improving ports, roads, railways, electricity, security and industrial infrastructure in other regions could reduce some of the logistical disadvantages faced by businesses outside the established corridor.
At the same time, continued investment in Lagos and Ogun could expand Nigeria’s existing industrial base if infrastructure keeps pace with growth.
For investors, the current pattern shows where industrial capital has been concentrated. For policymakers, it highlights the infrastructure and regional-development issues that will influence whether manufacturing investment becomes more geographically distributed.
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