Lagos emerges as continent's key economic powerhouse, says Sanwo-Olu

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Gov Sanwo-Olu

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…Says state’s $259.75bn economy, infrastructure investments make it a sub-national giant
Bakare, others advocate regional interdependence for Nigeria’s prosperity

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By Olasunkanmi Akoni

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LAGOS — Governor Babajide Sanwo-Olu has declared that Lagos is strategically positioned as Africa’s leading geo-economic hub, leveraging trade, infrastructure, finance, technology and human capital to drive prosperity across Nigeria, West Africa and the global economy.

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Sanwo-Olu made the assertion on Saturday at the Geo-Economic Optimization Summit Lagos 2026, organised by the Citadel School of Government in Oregun, where he said geoeconomics—the deliberate use of economic instruments to project influence—has become a defining feature of the new global order.

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According to the governor, power is increasingly derived not only from treaties but also from ports, data centres, logistics networks and supply chains.

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He noted that Lagos contributes about one-third of Nigeria’s Gross Domestic Product (GDP) and is Africa’s second-largest metropolitan economy after Cairo, with an output exceeding $259.75 billion on a purchasing-power-parity basis.

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“If Lagos were a country, it would rank as Africa’s eighth-largest economy,” Sanwo-Olu said.

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“Over 90 per cent of the state’s output comes from a diversified base of finance, technology, trade, logistics, creative industries and the blue economy.”

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The governor outlined Lagos’ geo-economic influence across multiple levels, citing its participation in regional institutions such as the Odu’a Group, the DAWN Commission and the South-West Development Commission.

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Sanwo-Olu, who also chairs the South-West Governors’ Forum, called for deeper regional economic integration among states, stressing that cooperation and strategic partnerships remain critical to sustainable development.

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“We must think regionally, act strategically and cooperate generously, because no single state can capture the whole prize alone,” he said.

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Delivering a keynote address titled “From South-West Nigeria to the Globe: Lagos State as a Geoeconomic Hub,” the governor reaffirmed Lagos’ commitment to fostering stronger regional ties and economic collaboration across the South-West.

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He highlighted ongoing investments in infrastructure, including the operational Blue and Red Rail Lines, federal counterpart funding for the Green Line project and the reconstruction of the Lagos-Badagry Expressway.

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Sanwo-Olu also pointed to the state’s electricity law and market reforms aimed at improving power supply, alongside federal projects such as the 700-kilometre Coastal Highway and the over 1,000-kilometre Sokoto-Badagry Superhighway.

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“Lagos is a sub-national economy that carries the weight of a nation. As Nigeria’s commercial and financial nerve centre and its busiest gateway for trade and investment, Lagos carries responsibilities that extend far beyond its borders,” he said.

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“When Lagos works, Nigeria works better.”

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The governor reiterated his administration’s push for a constitutional “special status” for Lagos, arguing that the state’s historical significance, economic importance and population burden justify such recognition.

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“We believe Lagos deserves that recognition and we will continue to seek a constitutional provision to guarantee it,” he added.

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Sanwo-Olu also assured investors that Lagos remains open for business and ready to partner with individuals, the private sector, regional stakeholders and international investors.

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Earlier, founder and Board Chairman of the Citadel School of Government, Tunde Bakare, described Lagos as a model for economic transformation and a blueprint for developing multiple world-class economic hubs across Nigeria.

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According to him, Lagos demonstrates what can be achieved through strategic vision, institutional continuity and sustained investment.

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“Lagos is Nigeria’s most economically viable state and a model of progressive continuity in development planning and execution throughout the Fourth Republic,” Bakare said.

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“From the administration of President Bola Ahmed Tinubu to that of Babajide Sanwo-Olu, Lagos offers a compelling basis for national reflection and dialogue.”

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Bakare added that Lagos’ development trajectory illustrates how a sub-national entity can become a globally relevant economic hub and serves as an inspiration for other regions seeking to unlock their economic potential.

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Also speaking, Sunday Adebisi, Executive Director of the University of Lagos Business School (ULBS), said Lagos possesses the commercial DNA and geographic advantage needed to drive regional and continental growth.

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“Lagos is no longer just Nigeria’s commercial capital; it is the geo-economic engine of West Africa with global ambitions,” he said.

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Adebisi stressed the need for stronger institutions, talent development, infrastructure and governance systems to sustain the state’s growth and competitiveness.

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In his welcome address, Executive Director of the Citadel School of Government, Omoaholo Omoakhalen, described the summit as a milestone initiative aimed at generating ideas on how Nigeria can harness the strengths of its regions, states and communities to build a more prosperous, peaceful and globally competitive nation.

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