Lagos presses investors to shift from trading to manufacturing

File photo: Governor Babajide Sanwo-Olu of Lagos State

The Lagos State Government has challenged foreign and local investors to move beyond selling goods in Nigeria’s commercial capital and establish manufacturing, agro-processing and technology operations in the state, as it seeks to turn Lagos into a production and export base for West Africa.

Governor Babajide Sanwo-Olu made the call on Friday at the opening of the 40th Lagos International Trade Fair at Tafawa Balewa Square, acknowledging that persistent energy, financing and logistics constraints remain major obstacles to businesses despite the state’s infrastructure investments and business reforms.

In a goodwill message delivered by the Commissioner for Commerce, Cooperatives, Trade and Investment, Folashade Bada-Ambrose Medebem, the governor said the fair should produce investment commitments and commercial partnerships rather than serve merely as an avenue for displaying and selling goods.

“This fair must facilitate investment, encourage production, connect businesses to larger markets, and create lasting commercial relationships,” Sanwo-Olu said.

He urged international exhibitors to consider local manufacturing, technology transfer and supply-chain development, while encouraging Nigerian businesses to use the event to attract financing, acquire technology and reach larger markets.

The governor said Lagos wanted more companies to manufacture and process products within the state and establish regional operations that would enable them to serve markets across West Africa and beyond.

He pointed to the African Continental Free Trade Area, with an estimated market of 1.4 billion people, as an opportunity for businesses that can produce at scale and meet international standards.

The 40th edition of the fair, organised by the Lagos Chamber of Commerce and Industry, has attracted more than 1,000 exhibitors from over 20 countries, with a dedicated Africa Hall showcasing opportunities under the continental trade agreement.

But the governor’s investment pitch acknowledged the constraints facing businesses.

He identified energy, access to finance and logistics as continuing challenges, even as he listed the operational Blue and Red rail lines, road and transport projects, the Lagos State Electricity Law and digital infrastructure among government interventions to improve the business environment.

Sanwo-Olu also cited Lagos’s first-place ranking in the 2025 Presidential Enabling Business Environment Council subnational ease-of-doing-business assessment, in which the state scored 85.6 per cent.

He urged small and medium-sized enterprises, particularly young entrepreneurs, to use the fair to bridge gaps in finance, technology and market access.

In his keynote address, President Bola Tinubu similarly challenged businesses to shift from consumption to production, arguing that the country’s economic growth would depend on processing local raw materials, manufacturing goods and creating jobs at home.

Represented by the Minister of State for Industry, John Enoh, Tinubu urged participants to assess the fair by the commercial deals it generated rather than the number of people who attended.

He said the government was pursuing policies to encourage value addition to local raw materials, adding that economic benefits would be greater when production and employment took place within the country.

The President also said Nigeria would host the Intra-African Trade Fair for the first time in 2027, in partnership with the African Export-Import Bank, while assuring international investors that the country was open for business.

Earlier, the President of the Lagos Chamber of Commerce and Industry, Leye Kupoluyi, said the fair had evolved over four decades into a major platform for trade, investment and industrial development in Nigeria and across the continent.

The Chairman of the Trade Promotion Board and Vice-President of the chamber, Layo Bakare-Okeowo, acknowledged the support of the Lagos State Government, Afreximbank, the ECOWAS Foundation, Zenith Bank and other partners.