Lagos State Unveils New Industrial Policy to Become Africa’s Manufacturing Hub

Lagos State has launched a new industrial policy for 2025–2030 designed to establish the state as a primary manufacturing hub in Africa. The initiative focuses on increasing competitiveness, attracting large-scale investment, and positioning Lagos as a strategic gateway within the framework of the African Continental Free Trade Area.

Governor Babajide Sanwo-Olu introduced the policy, which prioritizes regulatory reform, industrial cluster development, stable power supply, and improved access to finance. The governor was represented at the launch by Abimbola Salu-Hundeyin, the Secretary to the State Government.

This policy positions Lagos to emerge as a leading manufacturing hub in Africa,

Governor Babajide Sanwo-Olu

According to the governor, the policy is intended to function as an implementation engine to localize national ambitions and accelerate industrial productivity. He stated that the framework provides a roadmap to reimagine, rebuild and reposition the industrial sector of Lagos to ensure it remains competitive globally.

To support this transition, the state government is focusing on adapting to technological advancements and shifting global supply chains. Sanwo-Olu noted a commitment to the ease of doing business, stating that the government is working to create an environment that is transparent, predictable and efficient for operators.

Strategic Focus and Economic Alignment

The 2025–2030 policy aligns with the broader Lagos State Development Plan 2052 and the STEAMS Plus agenda. The document identifies several key focus areas essential for industrial growth:

• Regulatory reform and the removal of bottlenecks.
• Expanded access to finance and investment promotion.
• Skills development and workforce readiness for modern manufacturing.
• Innovation and sustainability.

Folashade Ambrose-Medebem, the Commissioner for Commerce, Cooperative, Trade and Investment, stated that the policy resulted from months of data-driven analysis and stakeholder consultations. She described the agenda as the most ambitious industrial plan conceived by the state government in recent years.

Ambrose-Medebem emphasized that the framework aims to reduce dependence on imports and increase value addition across critical sectors of the state economy. She specifically highlighted the role of Micro, Small and Medium Enterprises (MSMEs) as central to the policy’s success.

The most consequential commitment in this policy is the one where we have a need for small and medium-sized enterprises,

Folashade Ambrose-Medebem, Commissioner for Commerce, Cooperative, Trade and Investment

The policy also includes specific timelines to address existing constraints, including supply chain disruptions, regulatory hurdles, and infrastructure deficits.

Federal Integration and Private Sector Response

John Enoh, the Minister of State for Industry, Trade and Investment, characterized the policy as a signal that Nigerian industrialization requires coordinated action between federal and sub-national governments. He noted that the Lagos initiative mirrors national goals regarding export readiness, innovation, and business competitiveness.

It is essential because industrialisation in Nigeria will only succeed when federal vision and strategic plan execution move in lockstep,

John Enoh, Minister of State for Industry, Trade and Investment

Representatives from the organized private sector expressed support for the initiative but emphasized the necessity of practical execution. Segun Ajayi-Kadir, Director-General of the Manufacturers Association of Nigeria, observed that the country has lacked a comprehensive national industrial policy for decades.

Ajayi-Kadir stated that the Lagos policy could provide much-needed certainty for businesses. He noted that manufacturers are looking for the policy to be practicalized through improved port efficiency, better power access, enhanced cluster management, and the achievement of economies of scale.

Ayotunde Coker, representing the Lagos Chamber of Commerce and Industry, added that while Lagos is already a hub for digital infrastructure in Africa, the state requires the appropriate physical infrastructure to fully unlock its potential for innovation and industry.