Food, beverage firms lead Nigeria’s real investments with N375bn

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Nigeria’s food, beverage and tobacco industry attracted N375.03bn in fresh investment in 2025, making it the biggest recipient of manufacturing investment during the year.

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Investment in the sector jumped by 63.5 per cent from N229.42bn recorded in 2024, according to data from the Manufacturers Association of Nigeria.

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The increase reflects continued expansion by major manufacturers as they seek to meet demand in Nigeria’s large consumer market.

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Companies including Flour Mills of Nigeria, BUA Foods, Nestlé Nigeria, Dangote Sugar, Dufil, Cadbury Nigeria, CHI Limited, Unilever Nigeria and Honeywell Flour Mills were among firms investing in the sector.

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The non-metallic products industry ranked second with N280.12bn, driven largely by investments in cement and glass manufacturing.

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Motor vehicle assembly attracted N170.8bn, while the chemical and pharmaceutical sector received N123.61bn billion.

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Industrial plastics, rubber and foam manufacturers invested N123.44bn, while the textile and carpet industry attracted N112.53bn.

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Total investment in 2025 stood at N1.33tn. While the food and beverage industry led by sector, Lagos and Ogun remained the main destinations for manufacturing capital.

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In 2024 and 2025, the two states attracted N1.74tn in industrial investment, accounting for 87.32 per cent of total investment recorded across Nigeria during the period.

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The remaining 34 states attracted only N252.23bn, representing 12.7 per cent.

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The figures underline the dominance of the Lagos-Ogun corridor in Nigeria’s manufacturing industry.

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Lagos’ large consumer market and access to major ports remain key reasons manufacturers prefer the state.

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The Apapa, Tin Can Island and Lekki ports provide access to imported raw materials and export markets, while the state also has a large financial and commercial ecosystem.

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Ogun has benefited from its location next to Lagos. Industrial areas such as Agbara, Igbesa, Ota and Sango-Ota have become important manufacturing centres.

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The availability of land for factories and lower expansion costs compared with Lagos have also helped Ogun attract manufacturers.

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Data from MAN showed that between 2014 and 2020, manufacturers invested N3.35tn in Nigeria.

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Ogun received N1.68tn, representing 50.16 per cent of the total, while Lagos attracted only N928bn, or 27.7 per cent.

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Manufacturers in other parts of the country face higher logistics costs because of weak road networks, limited port access and other infrastructure challenges.

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Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Muda Yusuf, said the Lagos-Ogun axis benefits from both its large market and proximity to ports.

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He noted that manufacturers must consider the cost of bringing in raw materials and moving finished products when deciding where to locate factories.

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A consultant economist and former Central Bank of Nigeria analyst, Nonso Ihuoma, also linked Lagos’ advantage to its location and functioning seaports.

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He said developing ports in other parts of the country could reduce the cost of moving goods and encourage manufacturers to invest outside Lagos and Ogun.

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Security challenges in some states also remain a concern for businesses, increasing the cost and risk of operating outside the main industrial corridor.

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Experts said better ports, roads, rail infrastructure and investment incentives would help attract more factories to other parts of Nigeria.

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