Given its size and location, Lagos is likely to remain Nigeria’s economic powerhouse Lagos is the only coastal megacity in Africa, and has the only international port in Nigeria making it especially attractive for goods exports. 17 million people live in Lagos compared to 5 million a decade ago, providing a significant consumer market and talent pool. If Lagos were a country, its $80bn economy would be larger than that of Kenya making the city the 6th largest in Africa. According to fDi Markets, Lagos also receives most FDI projects from all cities in Nigeria.
The other significant economic areas with high GDP per capita include the coastal centre of Rivers State where the oil and gas sector is dominant and Abuja where the government resides (see Figure 14). We expect other populous and resource rich regions that are currently dominated by informal and low value sectors (see Figure 15) to flourish as reforms take place and the economy grows. These regions include Port Harcourt, Aba, Warri, Onitsha, Enugu and Benin City in the South-East, Ibadan, Ilorin, and Ogbomosho in the South-West and Kaduna, Kano, and Zaria in the North.
Infrastructure is key and Lagos is well positioned to build on its current position of advantage Nigeria has three ports into which large containers can be shipped: two medium sized ports are in Lagos and one in Port Hartcourt in Rivers State in the south of Nigeria. Both states also have an international airport each which make them attractive to foreign investors. Future planned ports in Lekki and other areas in Lagos make Lagos a key area for UK trade now and in the future. In addition, Lagos state government has the reputation of being one of the most efficient in Nigeria. Therefore, despite constraints, Lagos is a key area of reform and opportunity going forward.