Lagos has long been recognised as Nigeria’s commercial centre, with businesses of different sizes operating across finance, technology, manufacturing, retail, entertainment, real estate and professional services. As the state continues to grow, the question is no longer simply how to maintain its position as an economic centre. It is how to build an economy that can support more businesses, create more jobs and attract greater investment.
That is the focus of M for Making Lagos a 21st-Century Economy, the fourth pillar of the Lagos State Government’s THEMES+ agenda.
The pillar covers several areas of economic development, including creating a conducive business environment, supporting key economic sectors, attracting investment, developing the workforce and creating opportunities for job and wealth creation. The Lagos State Government’s resilience strategy also identifies youth development, private-sector participation and energy efficiency among the priorities under this pillar. (Lagos State Resilience Strategy)
The idea behind a 21st-century economy goes beyond having more businesses operating within Lagos. Businesses need an environment where they can register, access finance, employ people, expand their operations and reach customers without unnecessary barriers. Investors also need confidence that infrastructure, regulations and public institutions can support long-term economic activity.
This has made ease of doing business an important part of the State’s economic agenda.
In May 2025, the Lagos State Government said it was accelerating its ease-of-doing-business reforms ahead of a World Bank assessment. The exercise involved 17 Ministries, Departments and Agencies and was aimed at improving coordination across government and creating a more business-friendly environment. (Lagos State Government)
For an entrepreneur trying to establish or expand a business, these reforms can have practical consequences. The amount of time required to obtain approvals, understand regulations, access government services or resolve administrative issues can influence how quickly a business moves from an idea to an operating enterprise.
Small and medium-sized businesses are particularly important to this conversation.
Lagos has a large population of entrepreneurs, traders, artisans and business owners whose operations contribute to employment and economic activity. Supporting them requires more than encouraging people to start businesses. Access to finance, skills development, market opportunities and appropriate regulation can determine whether a small business survives long enough to grow.
The State Government has therefore continued to promote financial support and other interventions for MSMEs. The Lagos State Employment Trust Fund, for instance, provides funding and other support to entrepreneurs and businesses as part of the State’s broader efforts to promote employment and enterprise development. The government has also continued to encourage young entrepreneurs to make use of available funding programmes. (Lagos State Government)
The Ministry of Commerce, Cooperatives, Trade and Investment describes strengthening the organised private sector, including industrial, MSME and nano sectors, as one of its key areas of focus. The Ministry also works on investment promotion, trade, cooperatives and industrial development. (Lagos State Ministry of Commerce, Cooperatives, Trade and Investment)
Investment attraction is another major part of the M pillar.
Lagos needs private capital to complement public spending, particularly for large infrastructure and commercial projects. The State Government has increasingly used investment summits and public-private partnerships to present opportunities to investors.
In July 2025, Lagos unveiled its Investment Deal Book, which brought together investment-ready projects across different sectors. The government described the projects as having been assessed for commercial viability, policy alignment and implementation readiness. The Deal Book was launched at the Lagos Investment Summit 2.0, which focused on practical measures for making Lagos a 21st-century economy. (Lagos State Government)
Public-private partnerships have also become part of this strategy. In January 2026, the Lagos State Office of Public-Private Partnerships signed a two-year Memorandum of Understanding with the Institution of Public-Private Partnerships Hong Kong to strengthen technical cooperation, knowledge exchange and investment-aligned partnerships. (Lagos State Office of Public-Private Partnerships)
Investment, however, is only one part of economic growth. The people who work within the economy need the skills to match the opportunities being created.
This brings employment and workforce development into the picture.
A growing economy needs people who can work across different industries, from manufacturing and construction to technology, finance, creative services and skilled trades. Training programmes therefore have an important role to play, particularly for young people entering the workforce.
The State has linked its economic agenda with skills development and employment initiatives, while its Ministry of Wealth Creation and Employment continues to work with businesses, entrepreneurs, recruiters, artisans and other stakeholders on job creation and MSME development. (Lagos State Government)
Technology is also changing what a modern economy requires.
Lagos has identified fintech, artificial intelligence, digital gaming and other technology-driven industries as areas with significant economic potential. In February 2025, Governor Babajide Sanwo-Olu said the State was developing policies and initiatives aimed at positioning Lagos as a leading African hub for fintech, digital gaming and AI-driven creative enterprises. (Lagos State Government)
This connects the M pillar with the Education and Technology pillar examined earlier in this series. A modern economy requires modern infrastructure, but it also requires people with the skills to use that infrastructure productively.
Manufacturing and industrial development form another part of the economic picture.
Lagos’ position as a major commercial centre gives it access to a large consumer market, ports, financial institutions and an extensive network of businesses. The challenge is to translate those advantages into stronger local production and more opportunities for businesses to manufacture, process and distribute goods within the state.
The Ministry of Commerce, Cooperatives, Trade and Investment has identified industrial development and investment promotion among its core responsibilities, while the State continues to engage investors and businesses around opportunities for expansion. (Lagos State Ministry of Commerce, Cooperatives, Trade and Investment)
There is also an economic argument for supporting cooperatives.
Cooperative societies can help individuals pool resources, access finance and participate in economic activity collectively. In February 2025, the Lagos State Government said it was working to strengthen cooperative societies through improved corporate governance, describing them as important to its plans for job creation, poverty reduction and economic growth. (Lagos State Government)
For an economy as large as Lagos, these different strands have to work together.
Infrastructure can attract investment, but businesses still need reliable public services. Funding can help an entrepreneur start a business, but access to markets and appropriate skills can determine whether that business grows. Technology can create new industries, but education and training are required to provide the people who will work in them.
This is why making Lagos a 21st-century economy is a much broader task than increasing the number of businesses operating in the state.
The real test lies in whether economic growth creates opportunities that people can access. A young graduate should be able to develop relevant skills and find employment. An entrepreneur should have a realistic pathway to finance and market access. An established company should be able to expand without facing unnecessary administrative barriers. An investor should find an environment where projects can move from proposals to implementation.
There are also challenges that cannot be ignored. Rising operating costs, access to affordable finance, infrastructure gaps and the pressures faced by small businesses continue to affect economic activity. Government programmes can provide support, but sustained economic growth requires continued attention to the conditions under which businesses operate.
Lagos has considerable advantages. Its large consumer market, concentration of businesses, growing technology sector, creative industries, transport infrastructure and access to local and international investors give it a strong foundation for economic development.
The M pillar seeks to build on those advantages.
The ambition is clear: create an economy that attracts investment, supports businesses, develops talent and creates jobs while giving Lagos a stronger position in regional and international commerce.
The success of that ambition will ultimately be measured by what happens beyond investment announcements and economic summits. It will be seen in businesses that expand, new enterprises that survive, people who find sustainable employment and industries that create value within Lagos.
Making Lagos a 21st-century economy is therefore an ongoing process. The infrastructure must keep improving, policies must respond to the needs of businesses and workers, and economic opportunities must reach more people across the state.
The work under the M pillar is already taking shape through investment promotion, MSME support, employment initiatives, ease-of-doing-business reforms and efforts to attract new industries. The next task is to ensure that these efforts continue to produce an economy that is productive, competitive and capable of creating opportunities for the people who live and work in Lagos.
Keep Reading with Exquisite Magazine
The THEMES+ series continues with Exquisite Magazine as we examine the policies and projects shaping Lagos, one pillar at a time. From transportation to healthcare, education and economic development, stay with Exquisite Magazine for the next instalment as we turn to E for Entertainment and Tourism, exploring the industries that place Lagos at the centre of Nigeria’s creative and tourism economy.
