This post highlights remarkable reasons why Lagos is the commercial hub of Nigeria.
How Lagos got its name
Lagos got its name from the Portuguese settlers in 1472, who came to explore and trade. The state was the chosen headquarters of the British colonies because it afforded them comfort and effective communication with London. These developments continued after the departure of the colonies by the newly independent Government of Nigeria.
Lagos, 25 years down the road, has grown into the commercial hub of the country, creating an economy that could withstand a massive blow like the covid pandemic and also compete with the economy of a small country. Lagos, the smallest state in landmass, contributed a share of 32.08 percent of the total IGR made by the entire states of the country in 2020. Lagos State is not only prosperous in Nigeria, it is also the 4th wealthiest city in Africa, with an estimated GDP of $108 billion.
With its diverse economy, Lagos houses the headquarters of the biggest names in different sectors. Companies like Globacom, Dangote, Guarantee trust bank, and many more all have their headquarters in Lagos.
Here are remarkable reasons why Lagos State is the commercial hub of Nigeria:
- Seaport: The Lagos seaport, split into three main sections: Lagos port, Apapa Port and Tin Can Port is one of the biggest seaports in Africa. Business men and women from every corner of the country use the ports in Lagos to bring in their commodities into the country. The Lagos State government receives tax on imported and exported goods, it forms part of its internally generated revenue. The revenue assists the government in building infrastructures that create a comfortable business environment.
- Population: As a former capital of the country, many people migrated to the state insearch of opportunities. In 2021 with 14 million people, Lagos is one of the fastest growing cities in the world. As we all know, for every commercial business to succeed, it needs to reach its target customer base. With the population of Lagos, it’s easier for these business owners to find their customers.
- Culture: One of the major attributes of the people of Lagos is their welcoming nature. This has allowed people to come from different parts of the country and world to peacefully conduct business.
- Entertainment industry: Lagos State plays home to the major players in the entertainment industry. It is the center stage for musicians, actors and comedians to showcase their work. It’s fun loving lifestyle has also given a massive push to the “Club”, “bar” and “Hotel” industries. Some of the best hotels like the Eko hotel and suites, Sheraton, and Oriental are located in Lagos.
- Tech: With the eyes of the world currently on the tech world, Lagos State plays home to some of the biggest tech startups in Nigeria. Companies like Flutterwave, CChub, Kuda Bank, and Paystack.
Lagos State has successfully combined all these factors to become the commercial hub of Nigeria. It is currently the state that has attracted the biggest foreign investments in the country in the year 2021.