Lagos State Governor, Babajide Sanwo Olu, has said the future of investment in Africa will be determined largely by the strength of its cities, where infrastructure, businesses and economic opportunities are created.
Sanwo Olu stated this while delivering a keynote address at a dinner in Washington, DC, following his receipt of the 2026 Global Transformation and Good Governance Prize from the Millennium Excellence Award, USA.
The award ceremony, held at the Warner Theatre in Washington, DC, was the highlight of the 2026 Africa Business Investment Summit organised by the Millennium Excellence Foundation at the MGM National Harbor in Oxon Hill, Maryland.
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Speaking on the theme, “Lagos and the Future of African Investment,” the governor presented Lagos as an example of how effective urban governance, infrastructure development and public private partnerships can support economic transformation and attract investment.
Sanwo Olu said Lagos occupies less than 0.5 per cent of Nigeria’s landmass but has a population larger than the Netherlands and contributes more than a quarter of Nigeria’s economic output.
“Measured by purchasing power, our economy is worth around $259 billion – the second largest city economy on the continent. Our budget this year is N4.4 trillion and more than half of it is capital spending,” he said.
The governor added that Lagos’ internally generated revenue was projected to exceed N3 trillion this year, arguing that the state’s fiscal capacity had enabled it to undertake major infrastructure investments without relying solely on oil revenues.
On technology and innovation, Sanwo Olu highlighted Lagos’ position as a major technology and startup hub in Africa. He cited Startup Genome’s ranking of Lagos as the number one startup ecosystem in sub Saharan Africa, with an estimated ecosystem value of $8.6 billion, three active unicorns and a strong technology talent base.
The governor also pointed to major infrastructure projects as evidence of Lagos’ investment potential. Among them, he cited the $1.5 billion Lekki Deep Sea Port, which he said overtook Apapa in 2025 to become Nigeria’s leading port by cargo throughput and now handles about 40 per cent of cargo in the country.
He also highlighted the Dangote refinery, describing its emergence as part of a broader shift from the export of crude oil towards domestic refining and value addition.
On transportation, Sanwo Olu said the Blue Line rail, described by his administration as West Africa’s first electric urban railway, had transported more than eight million passengers.
He further disclosed that new eight car trains had been procured for the Red Line, with the capacity to transport up to 500,000 passengers daily when fully operational.
The governor also highlighted the Omi Eko water transport project, backed by €410 million, which he said would deliver 75 electric ferries, 25 terminals and 15 routes across the Lagos waterways.
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According to Sanwo Olu, the scale of Lagos’ infrastructure and economic ambitions reflects the state’s long term objective of building a $1 trillion economy by 2052.
He urged international investors to look beyond Africa as a single investment destination and instead assess individual cities based on their governance systems, infrastructure, human capital and ability to create an enabling environment for businesses.
“Africa’s investment future will be won or lost in its cities,” he said, arguing that urban centres would become increasingly important as the continent’s population becomes more concentrated in cities.
Sanwo Olu noted that Africa is expected to add nearly one billion urban residents by 2050, making the development of functional, productive and investment friendly cities critical to the continent’s economic future.
Receiving the award, the governor dedicated the honour to the more than 25 million residents of Lagos State and expressed appreciation to the Asante Crown and the Millennium Excellence Foundation for the recognition.
He said the recognition further strengthened his administration’s commitment to building a Lagos that is competitive, connected and positioned to play a greater role in the global economy.
