Nigeria boasts vast natural resources and a large, dynamic population. Yet, its economic structure tells a different story—one where the majority of commercial and infrastructural development is concentrated in Lagos, leaving the rest of the country underutilized and struggling for growth.
This one-city economic model is unsustainable and stifles the nation’s potential. To achieve balanced development and true economic transformation, Nigeria must break free from this over-reliance on Lagos and unlock opportunities across all regions.
The Powerhouse of Lagos
There is no denying Lagos’s economic dominance. The state contributes roughly 35% of Nigeria’s Gross Domestic Product (GDP), with its economic output surpassing those of entire African nations. Over 75% of Lagos’s revenue is internally generated, making it less dependent on federal allocations. This self-sufficiency has made it a magnet for businesses, investments, and migration.
However, the disproportionate focus on Lagos has also led to severe congestion, housing shortages, traffic gridlocks, and overburdened infrastructure. The state’s ports, which handle about 75% of the country’s cargo, are constantly overwhelmed, creating bottlenecks that drive up logistics costs. This heavy concentration of trade in Lagos, while profitable in the short term, is a ticking time bomb for national economic stability.
Neglect of Other Economic Hubs
Despite Nigeria having six major seaports—Apapa and Tin Can Island in Lagos; Rivers and Onne in Rivers State; Calabar in Cross River State; and Warri in Delta State—Lagos remains the primary gateway for imports and exports. Other ports are either underutilized or non-functional due to infrastructural decay, poor dredging, security concerns, and government neglect. This forces businesses to rely on Lagos, driving up transportation costs and creating inefficiencies that hurt the entire economy.
States outside Lagos struggle to attract investments, leading to regional economic stagnation. In the North, industrialization efforts are hampered by insecurity and inadequate infrastructure. In the South-East and South-South, trade potential remains largely untapped due to poor road networks and bureaucratic bottlenecks. The result? A lopsided economy that places immense pressure on one state while leaving others in a cycle of underdevelopment.
Blueprint for Economic Decentralization
To create a truly prosperous Nigeria, policymakers must rethink the country’s economic structure and embrace decentralization. Here’s how:
1. Revitalize and diversify ports
The federal government must prioritize the dredging, security, and modernization of non-Lagos ports to attract shipping traffic. Incentives such as lower tariffs and streamlined operations can encourage businesses to use alternative ports.
2. Invest in regional infrastructure
A robust rail and road network connecting different regions will facilitate trade and reduce the dependency on Lagos. Industrial parks and economic zones should be established outside Lagos to attract manufacturing and processing industries.
3. Encourage business-friendly policies nationwide
State governments must be empowered to create investor-friendly environments through tax incentives, improved security, and reduced bureaucracy. The ease of doing business should not be a Lagos-only phenomenon; other states must adopt policies that encourage startups and multinationals alike.
4. Strengthen local economies
Agriculture, mining, and technology sectors should be actively developed across Nigeria’s regions to create jobs and reduce rural-to-urban migration. States must take ownership of their resources and economic planning rather than waiting for federal allocations.
Conclusion
Nigeria’s current economic model, which places Lagos at the center of nearly all major economic activities, is neither sustainable nor beneficial for national development. By decentralizing economic power, revitalizing ports, and strengthening regional economies, Nigeria can unlock its full potential and create a more inclusive and prosperous future. The time to act is now—Lagos cannot, and should not, carry the weight of the entire country alone.
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