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Nigeria's Economy

Lagos: Africa's Megacity

How Lagos became one of Africa's largest cities and economic hubs, its infrastructure challenges like traffic and housing, and projects like Eko Atlantic.

Lagos is one of Africa’s largest cities.

Size

  • The Lagos metropolitan area has an estimated 15 to 20 million or more people.
  • It generates a large share of Nigeria’s non-oil economic activity.

Economic hub

  • Ports: Apapa and the new Lekki Deep Sea Port (2023).
  • Finance, trade, tech and entertainment.

Challenges

  • Traffic: notorious “go-slows”.
  • Housing shortages and informal settlements, including Makoko, built on stilts over a lagoon.
  • Flooding.
  • Power shortages; businesses rely on generators.

New infrastructure

  • Lagos Rail Mass Transit Blue Line opened in 2023, the city’s first metro line.
  • Eko Atlantic: a new city built on land reclaimed from the ocean.
  • Dangote Refinery near Lekki.

Taxes

Lagos State has strong internally generated revenue compared with other Nigerian states, reducing dependence on oil revenue shares.

The three-hour commute

A bank worker in Lagos leaves home at 5 am to beat traffic for a 20-km commute that can take three hours in rush hour.

Thinking Nigeria's economy is only oil

Lagos drives a large non-oil economy in services and trade.

Key takeaways
  • Lagos has an estimated 15 to 20 million or more people.
  • It's a hub for ports, finance, tech and entertainment.
  • Traffic, housing and power are major challenges.
  • The first metro line opened in 2023.
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