Economics and Business Climate Overview of Lagos, Nigeria.

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Economics and Business Climate Overview of Lagos, Nigeria.
1.0 Background Information
1.1 Geopolitical Profile
The smallest in area of Nigeria's states (total land area of three thousand, five hundred and seventy seven square meters), Lagos State is the most populous state (with over eighteen million people according to 2006 population census) and unarguably the most economically important state of the country and the nation's most urbanized (Economic Intelligence Unit, MEPB 2012).

This large, mostly young, population offers both an abundant workforce and a larger emerging and relatively untapped market for consumer products and services (Lagos State Government 2012).

1.2 Business and Economic Potentials
The business environment in Lagos, Nigeria and Africa generally, is evolving and changing at a great rate. Lagos is Nigeria’s commercial and industrial nerve centre and a focal point for key economic growth for Nigeria as a whole (BECANS Business Environment Report 2007). Over Fifty percent of Nigeria’s Industrial capacity is located in Lagos, with a variety of manufactured goods being produced in the city (Lagos State Government 2012).

Eighty percent of registered businesses in Lagos, Nigeria, as at 2011, were not in existence 20years ago, this is according to officials of the Corporate Affairs Commissions (CAC). It therefore implies that in spite of the harsh operating environment, more people are still seeking investment opportunities in the country, especially in Lagos, the nation’s commercial capital (FinIntell 2014).

The National Bureau of Statistics last year stated that Lagos State contributes 20.27% to the nominal gross domestic product (GDP), the highest state contributor in Nigeria. It further noted that Lagos hos...

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...tics 2010).
4.0 Conclusion
As a matter of priority, the State has continued to benchmark its economic activities with international best practices with a view to identifying and strengthening her areas of comparative economic advantages as well as determining sectors that would require governmental interventions over a period of time (Lagos Bureau of Statistics 2010).

Opportunities are abound in the business environment of Lagos. All infrastructure and population challenges present great opportunities for discerning investors. There are also opportunities for social services, infrastructure, construction and rural power supplies. Most interestingly, there are direct investments by foreign investors in various sectors (Economic Intelligence Unit, MEPB 2012). All these and more shows that the business environment of Lagos is one any willing investor cannot miss out.

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