BoI advocates investment in industrial clusters to boost Lagos economy

By Babajide Komolafe The Bank of Industry (BOI) has called for increased investment in industrial clusters, reliable power supply and supporting infrastructure to boost productivity, attract private capital and strengthen the Lagos State economy. Managing Director/Chief Executive Officer, BoI, Dr. Olasupo Olusi made this call in a keynote address delivered at the 4th edition of the Lagos Economic Outlook 2027 Discourse, themed, ‘“Development Pathways, Emerging Risks and Strategic Policy Priorities.’ Represented by Dr.

Isa Omagu, General Manager, MD/CEO’s Office, BoI, Olusi said investment in industrial clusters, particularly along major industrial and port corridors, would help businesses overcome production constraints, reduce operating costs and improve their competitiveness. He also said Lagos must assess economic progress by the improvements businesses and residents experience, rather than relying solely on economic growth figures and public spending.

“The test is whether Lagos becomes more productive and more liveable,” he said. He identified electricity costs, traffic congestion, access to appropriate financing and institutional coordination as major constraints to business productivity. “A manufacturer needs reliable electricity. A worker needs a commute that does not consume productive hours.

Firms need predictable approvals, appropriate finance and customers,” he said. Olusi urged the state to prioritise investment in power infrastructure serving industrial clusters, faster freight movement, streamlined business approvals, flood-resilient commercial routes and skills development. Speaking at the event, Lagos State Commissioner for Economic Planning and Budget, Mr.

Ope George, said the ministry would continue to coordinate economic intelligence, development planning, budget management and performance monitoring in support of Lagos State’s long-term development aspirations. He said the 2027 economic outlook provided an opportunity to consolidate the state’s achievements, address structural challenges and strengthen its position as a competitive and resilient economy.

“Our focus goes beyond economic projections. It is about shaping policies that will strengthen competitiveness, promote inclusive growth and secure a sustainable future for Lagos State,” George said. Earlier, Permanent Secretary, Ministry of Economic Planning and Budget, Mrs. Olayinka Ojo, highlighted the state’s development planning, budget monitoring and performance evaluation frameworks.

She said Lagos was strengthening evidence-based governance through its long-term development plan, Medium-Term Expenditure Framework, annual budgets and regular monitoring of revenue, expenditure and project delivery. Ojo also highlighted the government’s engagement with communities and the use of platforms to improve citizens’ access to information on public projects and social intervention programmes.