Generally speaking, manufacturing entails the processing of specific raw (input) materials into desired finished products (output). Manufacturing businesses in Nigeria include, but are not limited to agro-allied products; water- based products (e.g. sachet water, bottle water, or ice block production); electrical installations; steel-based products (such as building materials, kitchen utensils, etc.); drugs production; plastics and chemicals; ICT-based industries, etc. The list of available ideas for manufacturing businesses in Nigeria is long.
So, are you interested in starting a manufacturing business in Nigeria and you are concerned about the best place to site your manufacturing business? In this article, I give you the best places for your manufacturing businesses across the nation.
Factors to Consider in Choosing a Vantage Location For Your Manufacturing Businesses in Nigeria
But before I delve into that, let me show you some of the general factors to consider in choosing a vantage location for your manufacturing businesses in Nigeria and anywhere else.
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Population Density of the Location
As the purpose of production is to get goods across to those who need them, it is reasonable that intending manufacturers site their industries close to, or within areas of high population density. This would cut transportation cost to an extent.
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Road Accessibility
In the event where the industry is cited close to the expected market, rather than within it, the roads which lead to the manufacturing site should be potable enough to smoothen the transportation of goods.
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Security
Insecurity drives not just people (who are potential customers) from a region; it also deters potential investors from the region. So, while choosing a location for your manufacturing businesses, ensure that the location is relatively safe, in fact, safer than other places. This should come top while making your business establishment decisions.
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Other Factors
What I refer here to as “Other Factors” here include factors like the receptivity of the environment and local/state government to your manufacturing businesses. You can know this by checking the history of factories situated in the area, those that left, and those that were not allowed to cite in the past.
Also, you should look out for the favorable-ness of the environmental conditions of the area, the availability of raw materials, etc.
Manufacturing Businesses in Nigeria
Now, here are best states to site your manufacturing businesses. These locations/states feature at least one of the general factors to consider in choosing a vantage location for your manufacturing businesses in Nigeria.
9 Best Places For Manufacturing Businesses in Nigeria
(1) ABIA STATE
Abia is a South-Eastern state in Nigeria. Formed in 1991, Abia state is home to the infamous Aba, an industrial hub. The population of Aba is more than 839,000. The presence of Aba in Abia state puts Abia forward into the ranks of states favorable for sitting manufacturing businesses in Nigeria. Currently, Abia state generates about 2 % of Nigeria’s Gross Domestic Product (GDP).
Manufacturing activities already existing in Abia include Palm oil and Palm kernel oil production, cola nuts, textile, cosmetics, etc. With a large agricultural-based economy, more than two-thirds of Abia residents work in the agro-based industries.
(2) KANO STATE
Bordered by Kaduna, Katsina, Bauchi and Jigawa states, Kano state is the commercial hub of the northern part of the country. It is also said to be Nigeria’s most populous state. Kano state hosts more than a hundred factories which are into the production of agriculture – based products, as well as other form of products including; food and drinks, pharmaceutical, tanning, textile and vegetable oil production.
Kano has several tourist attractions which further help its market base.
(3) OSUN STATE
Next on our list is Osun State. Osun state is situated in South Western Nigeria, and is home to the ancient city of Ile Ife. It has a large coca industrial base which already turns out more than twenty thousand tons of cocoa every single day.
Prospects for chemical based industries also exist abundantly in the state, as chemical based industries are already seen to be flourishing in Osun State.
(4) AKWA IBOM STATE
Akwa Ibom is located in Nigeria’s “South- South” region. It is a top tourist destination in the country. Akwa Ibom has a population of more than five million residents (by 2006 census). The state, which sits different chemical – based factories, is in the Niger Delta region and produces some of the largest oil and gas products in Nigeria.
Akwa Ibom is one of the states you might want to consider if you’re considering a location for your manufacturing business.
(5) RIVERS STATE
Rivers state is one of the most vantage states to site a manufacturing industry in the country. Its capital city of Port Harcourt is one of Nigeria’s prominent cities. Rivers state produces more than 60% of Nigeria’s crude oil products. This predisposes the state as a good centre for petrochemical based industries. The sixth most populous state in the country, Rivers also doubles as a major tourist centre in the country, giving it a larger market base.
(6) OYO STATE
One of Nigeria’s most industrialized state, Oyo state hosts one of the nation’s biggest tobacco producing factories. Oyo is the fifth most populous state in Nigeria. Its state capital, Ibadan, is the third most populous city in Nigeria. Oyo state has a large agriculture base, with a rich rain forest for the cultivation of cocoa, rubber, as well as other cash crops. Ibadan, the capital city is not only populous, but also has a large expanse of land. This gives a viable leverage to companies which would not have to expend high transport costs before getting to their desired market.
(7) OGUN STATE
Surely, the list of places best suited to locate your manufacturing businesses in Nigeria could not be completed without this state. Also known as the Gateway State (due to its large border line towards Benin Republic), it is already one of the states hosting a high number of manufacturing industries in Nigeria. One of the strong selling points of Ogun is its proximity to Lagos state. The state government also has manufacturing industry-friendly policies.
Manufacturing industries already thriving in the state include ceramic, beverage, electrical installations, food companies, etc. With industrial estates existing in places such as Ota, Sagamu, and Lagos-Ibadan expressway, Ogun state is surely a favorable stated for manufacturing hubs in Nigeria.
(8) ANAMBRA STATE
Anambra is part of the Niger Delta region of Nigeria. Its state capital, Awka, hosts a highly productive oil and gas exploration base in Nigeria.
Home to Nnewi, known for its large vehicle spare parts market, Anambra hosts Nigeria’s first indigenous car assembly plant, INNOSON. These make Anambra a promising location for intending auto mobile based manufacturing startups.
Combining these with large natural resource base of oil and gas, ceramic, and bauxite, Anambra is promising for investors wishing to go into manufacturing businesses.
(9) LAGOS STATE
Finally, we can’t end this list without the Centre of Excellence, Lagos state. Lagos is the country’s most widely known city, and is at the peak of industrial and commercial activities in Nigeria. Home to international sea and air ports, Lagos is the highest generator of IGR, as well as contributor to Nigeria’s GDP.
The large population of Lagos state; its closeness to sea and air ports; and the business – favoring disposition of the state government over time; predisposes it any day any time an inviting location for manufacturing businesses.
Conclusion
The areas I have examined in this article at arguably the best places to situate your manufacturing business in Nigeria. It is, as stated earlier in this article, wise to study the prospective location for your manufacturing business with respect to your peculiar business situations. This will help you to avoid negative situations you never bargained for if you did a proper homework from the outset.
