Lagos Industrial Policy targets 10.2% manufacturing GDP contribution by 2026

The Lagos State Government has unveiled the Lagos State Industrial Policy (LSIP) 2025–2030, targeting a 10.2% contribution from the manufacturing sector to the state’s real GDP by 2026.

The policy was unveiled at the 59th Annual General Meeting of the Manufacturers’ Association of Nigeria (MAN), Ikeja Branch, held at the Radisson Blu, Ikeja, where the Lagos State Commissioner for Commerce, Cooperatives, Trade and Investment, Folashade Bada Ambrose-Medebem, was the Special Guest of Honour.

The commissioner, who was represented by the Director of Commerce, Segun Alogba, described the LSIP as the most consequential industrial framework Lagos has produced in a generation.

The policy is built around six pillars focused on strengthening the industrial base, improving the business environment, developing MSMEs, providing infrastructure, advancing skills, and promoting innovation and sustainability.

What she is saying

Ambrose-Medebem said the success of the industrial policy would depend on implementation rather than the policy document itself.

She said the LSIP translates Federal priorities into state-level actions through clear implementation mechanisms, timelines and accountability frameworks.

• “Policies alone do not build factories. Policies alone do not create jobs.”
• “What transforms a Policy from paper to prosperity is implementation.”
• “The LSIP is not a document to be admired from a distance; it is a roadmap to be followed with discipline and determination.”

She highlighted several delivery instruments under the policy, including regulatory and administrative reforms to reduce the time required to start, operate and expand industrial enterprises through one-stop investor facilitation and fast-tracked approvals.

Other measures include the expansion and optimisation of industrial clusters in Ikeja, Apapa, Ilupeju and the Lekki Free Zone Manufacturing Corridor, as well as the Lagos Industrial Development Fund and LASMECO Partnership with the Bank of Industry, which provide qualifying small businesses with single-digit, non-collateralised credit. The Lagos State Export Readiness Programme (LASERP) will also support qualified firms in transitioning from informal operations to AfCFTA-grade exports.

Get up to speed

The LSIP was initially launched in April 2025 by Lagos State Governor Babajide Sanwo-Olu as a strategic blueprint to reposition the state’s industrial sector for competitiveness in a rapidly evolving global economy.

• Sanwo-Olu, who was represented by the Secretary to the State Government, Bimbola Salu-Hundeyin, said the policy was designed to address structural constraints, unlock new growth opportunities and drive inclusive economic development across Lagos.
• The governor said the state would expand industrial clusters, improve logistics and port efficiency, and support small- and medium-scale enterprises in scaling and integrating into regional and global value chains.

Ambrose-Medebem also said Nigeria’s manufacturing sector grew by 3.29% year-on-year in Q1 2026, its strongest quarterly performance in four years, while its contribution to real GDP stood at 9.57%. She said this supports MAN’s projection of 3.1% manufacturing growth in 2026, which could push the sector’s contribution to 10.2%.

Constraints to productivity

MAN Ikeja Branch Chairman, Thomas Osobu, welcomed the policy direction but said several challenges continue to constrain manufacturing productivity.

• He identified policy inconsistency and multiple taxation as major challenges facing manufacturers.
• He also cited foreign exchange volatility and escalating energy costs.
• Inadequate infrastructure remains another constraint to industrial productivity.

Osobu called for constructive dialogue between government and manufacturers to ensure policy reforms are consistently implemented.

He said well-conceived and consistently implemented reforms could unlock industrial productivity, stimulate investment, encourage innovation, create quality employment and position Nigeria as a globally competitive manufacturing hub.

The Chief Executive Officer of the Lagos State Electricity Regulatory Commission (LASERC), Temitope George, also acknowledged manufacturers’ concerns over electricity tariffs and supply. She reaffirmed LASERC’s commitment to developing a functional, transparent and well-regulated electricity market, with a goal of ensuring that every Lagos resident has access to reliable electricity at appropriate pricing by 2030.

What you should know

The LSIP forms part of broader efforts by the Federal and Lagos State governments to strengthen Nigeria’s industrial base and improve the operating environment for manufacturers.

• President Bola Ahmed Tinubu officially launched the Nigeria Industrial Policy 2025 in February 2026.
• Vice President Kashim Shettima, who represented the President, described the policy as a strategic roadmap for re-engineering Nigeria’s industrial ecosystem.
• The Federal policy seeks to deepen value addition and address structural bottlenecks affecting industrial growth.

The Lagos industrial policy similarly focuses on infrastructure, MSMEs, skills, innovation and a more enabling business environment.

The implementation of the LSIP will therefore be closely tied to how effectively Lagos addresses the infrastructure, energy, taxation and regulatory challenges identified by manufacturers.