Nigeria’s food, beverage and tobacco industry attracted N375.03 billion in new investment in 2025, emerging as the largest recipient of manufacturing investment during the year.
The figure represents a 63.5 per cent increase from the N229.42 billion recorded by the sector in 2024, according to data from the Manufacturers Association of Nigeria (MAN).
The growth reflects continued investment by major manufacturers seeking to expand production and meet demand in Nigeria’s large consumer market.
Among the companies that invested in the sector were Flour Mills of Nigeria, BUA Foods, Nestlé Nigeria, Dangote Sugar, Dufil, Cadbury Nigeria, CHI Limited, Unilever Nigeria and Honeywell Flour Mills.
The non-metallic products industry ranked second, attracting N280.12 billion, with cement and glass manufacturing accounting for a significant share of the investment.
Motor vehicle assembly received N170.8 billion, while the chemical and pharmaceutical sector attracted N123.61 billion.
Manufacturers in the industrial plastics, rubber and foam segment invested N123.44 billion, while textiles and carpets attracted N112.53 billion.
Overall manufacturing investment stood at N1.33 trillion in 2025.
Lagos, Ogun retain dominance
Despite the spread of investment across various manufacturing segments, Lagos and Ogun states remained the dominant destinations for industrial capital.
The two states attracted N1.74 trillion in manufacturing investment in 2024 and 2025, representing 87.32 per cent of the total investment recorded nationwide during the period.
The other 34 states collectively attracted N252.23 billion, accounting for about 12.7 per cent.
The figures highlight the continued dominance of the Lagos-Ogun industrial corridor, which benefits from access to markets, ports, infrastructure and established industrial clusters.
Lagos has a large consumer market and direct access to major maritime gateways, including the Apapa, Tin Can Island and Lekki ports.
The state also has an extensive financial and commercial ecosystem that supports manufacturing and trade.
Ogun has benefited from its proximity to Lagos, with industrial locations such as Agbara, Igbesa, Ota and Sango-Ota developing into major manufacturing centres.
The availability of land and relatively lower expansion costs compared with Lagos have also made Ogun attractive to manufacturers.
MAN data showed that between 2014 and 2020, manufacturers invested N3.35 trillion in Nigeria.
Ogun attracted N1.68 trillion, representing 50.16 per cent of the total, while Lagos received N928 billion, or 27.7 per cent.
Infrastructure, logistics affect location decisions
Manufacturers operating outside the Lagos-Ogun corridor face challenges including higher logistics costs, poor road networks, limited access to ports and other infrastructure constraints.
Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Muda Yusuf, said the Lagos-Ogun axis had an advantage because of its large market and proximity to seaports.
He said manufacturers had to consider the cost of importing raw materials and transporting finished products when deciding where to establish production facilities.
A consultant economist and former Central Bank of Nigeria analyst, Nonso Ihuoma, also attributed Lagos’ advantage to its geographical location and access to functioning seaports.
Ihuoma said developing ports in other parts of the country could reduce transportation costs and encourage manufacturers to establish more factories outside Lagos and Ogun.
Security concerns in some parts of the country also remain an additional challenge for businesses, potentially increasing the cost and risks associated with operating outside established industrial centres.
Experts said investment in ports, roads and rail infrastructure, alongside incentives for businesses, would be necessary to encourage greater geographical distribution of manufacturing investment across Nigeria.
