In 2025, Nigeria’s food, beverage and tobacco industry drew N375.03bn in new investment, becoming the largest recipient of manufacturing investment that year.
According to data from the Manufacturers Association of Nigeria, investment in the sector rose by 63.5 per cent from the N229.42bn recorded in 2024.
This growth points to ongoing expansion by major manufacturers as they work to satisfy demand in Nigeria’s large consumer market.
Firms such as Flour Mills of Nigeria, BUA Foods, Nestlé Nigeria, Dangote Sugar, Dufil, Cadbury Nigeria, CHI Limited, Unilever Nigeria and Honeywell Flour Mills were among the companies that put money into the sector.
With N280.12bn, the non-metallic products industry came in second, mainly due to investments in cement and glass manufacturing.
Investment in motor vehicle assembly reached N170.8bn, whereas the chemical and pharmaceutical sector got N123.61bn billion.
Manufacturers of industrial plastics, rubber and foam invested N123.44bn, while the textile and carpet industry drew N112.53bn.
In 2025, total investment amounted to N1.33tn. Although the food and beverage sector was the leading industry, Lagos and Ogun continued to be the primary destinations for manufacturing capital.
Across 2024 and 2025, these two states drew N1.74tn in industrial investment, which made up 87.32 per cent of all investment recorded in Nigeria over that period.
The other 34 states received just N252.23bn, or 12.7 per cent.
These numbers highlight how dominant the Lagos-Ogun corridor is within Nigeria’s manufacturing industry.
Manufacturers continue to favor Lagos largely because of its vast consumer market and its proximity to major ports.
The ports of Apapa, Tin Can Island, and Lekki offer access to imported raw materials and export markets, and the state also boasts a substantial financial and commercial ecosystem.
Ogun has gained from being situated beside Lagos. Manufacturing hubs have emerged in industrial zones including Agbara, Igbesa, Ota, and Sango-Ota.
Ogun has also drawn manufacturers thanks to the availability of land for factories and lower expansion costs than in Lagos.
MAN data revealed that manufacturers invested N3.35tn in Nigeria between 2014 and 2020.
Ogun got N1.68tn, which is 50.16 per cent of the total, whereas Lagos attracted just N928bn, or 27.7 per cent.
Producers in other regions of the country contend with higher logistics expenses due to poor road networks, restricted port access and other infrastructure shortcomings.
Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise, stated that the Lagos-Ogun axis gains from its sizable market as well as its closeness to ports.
He pointed out that when choosing where to site factories, manufacturers have to factor in the cost of sourcing raw materials and transporting finished goods.
Nonso Ihuoma, a consultant economist and former analyst at the Central Bank of Nigeria, likewise attributed Lagos’ edge to its position and well-functioning seaports.
He stated that building ports in other regions of the country could lower the cost of transporting goods and motivate manufacturers to invest beyond Lagos and Ogun.
Security issues in certain states continue to worry businesses, raising both the cost and the risk of operating outside the primary industrial corridor.
According to experts, improved ports, roads, rail infrastructure and investment incentives would draw more factories to other areas of Nigeria.
