Commissioner Egube on what attracts investors to Lagos state

Lagos state has emerged as the top destination for capital investment in Nigeria in the fourth quarter of 2020, attracting $829.64 million, according to data released by the National Bureau of Statistics. In a recent interview on CNBC Africa, the State's Commissioner for Economic and Budget Planning, Sam Egube, discussed the strategies and sectors that Lagos state is prioritizing to attract more foreign direct investments (FDI) in 2021. Commissioner Egube highlighted the importance of maintaining a strong pandemic response and pushing the economy towards recovery post-lockdown. He emphasized the resilience of Lagos state's economy, with a GDP of $84 billion, higher than that of many countries. Despite the disruptive impact of the COVID-19 lockdown in 2020, Lagos state has made significant efforts to build back better and more sustainably. With a population of 22 million, the state has fostered a spirit of collective action among its citizens, contributing to the economic recovery. The government has invested in infrastructure, human capital development, transportation, and other key sectors to support the recovery and leverage the state's economic size and market accessibility. Commissioner Egube noted that lessons learned from the first wave of the pandemic have informed the state's response to the second wave, ensuring effective control and paving the way for a favorable post-pandemic recovery. He stressed that as the gateway to Nigeria and Africa, Lagos state plays a crucial role in driving the country's overall economic recovery. In terms of FDI strategy for 2021, Commissioner Egube outlined key areas of focus. He highlighted the importance of investing in transportation and infrastructure, maintaining a strong regulatory and legal environment, and prioritizing human capital development. Lagos state's geographic location and market accessibility provide a competitive advantage in attracting foreign investment. The state's budget for 2021 includes significant investments in these areas, with a total allocation of $219 billion, a 38% increase from the previous year. The transportation sector is set to receive a substantial boost, with a budget increase of 82% amounting to $92 billion. Investments in human capital have also grown by 36%, reflecting Lagos' commitment to enhancing the productivity of its 22 million inhabitants. The state has prioritized vocational development, education, and healthcare to ensure a skilled and healthy workforce. One of the key factors contributing to Lagos state's attractiveness to investors is its stable political environment. Since 1999, the state has been led by one dominant party, ensuring policy consistency and steady development programs. This political stability has played a crucial role in sustaining investments and fostering a favorable climate for foreign direct investments. With a strategic focus on infrastructure, human capital, and regulatory environment, Lagos state is well-positioned to continue leading Nigeria in attracting foreign direct investments. The state's commitment to economic recovery and sustainable growth sets a positive trajectory for its future development.