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GCSE Geography | Why is Lagos important? (NEE city study: Lagos 1)

Level:
GCSE

Last updated 10 Jun 2025

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Lagos is located in the south-west of Nigeria on the coast of the Gulf of Guinea. It is about 500km south-west from the capital city of Abuja, and about 50 km from the border of the neighbouring country of Benin.

Estimates of Lagos' population vary widely - many sources quote a figure of 17.1 million, however other sources state that it is closer to 21 million. It is the third largest African city after Cairo in Egypt and Kinshasa in the Democratic Republic of the Congo, and is one of the fastest growing cities in Africa with around 1.1 million people added each year.

The former Nigerian capital

In 1906 Lagos was made the capital of Southern Nigeria, and when the separate states of Southern and Northern Nigeria merged into a single state in 1914, Lagos became the capital city of Nigeria. It remained the capital city after independence from British rule in 1960, until 1991 when it was replaced by Abuja, which was seen as a better choice than Lagos for a number of reasons.

The Nigerian government decided to move away from Lagos as they felt the coastal location favoured those living in the south much more than the rest of the country. Lagos had also become increasingly congested and lacked space for further development, which meant that future growth of the capital city was limited.

However, despite not being the capital city anymore, Lagos is still the most important city in Nigeria, and is an important global city.

National importance of Lagos

  • Lagos is the largest city in Nigeria and is home to around 10% of the population
  • Lagos covers less than 0.5% of Nigeria's land and is the smallest state in the country - however its history of economic growth and transformation makes it the most important city in the country and it now generates the highest internal revenue of all of the states
  • Lagos generates about 30% of Nigeria's GDP - most commercial and financial businesses are carried out in the central business district situated on the island
  • 60% of Nigeria's industrial and economic activities are based in the city
  • Most large Nigerian companies have their headquarters in Lagos
  • Most Nigerian manufacturing industry is located in Lagos
  • Lagos is a major financial and banking centre - the four largest banks in West and Central Africa have their headquarters in the city
  • The Port of Lagos (pictured below) is the leading port in Nigeria and one of Africa's largest and busiest ports
  • Lagos has a large concentration of universities, including some of the oldest and most prestigious in the country - there are at least 136 universities in Lagos State
  • Lagos is the cultural hub of Nigeria - home to the Nollywood film industry, but also to countless galleries, museums and performance spaces, particularly those that reflect Yoruba culture

Global importance of Lagos

  • Lagos is one of the fastest growing cities in the world increasing by about 1.1. million people annually, and it is the third largest African city after Cairo in Egypt and Kinshasa in the Democratic Republic of the Congo
  • Lagos is a megacity, and a global city in terms of its global importance, but also down to the fact its foreign-born population is rising rapidly
  • Lagos as a city is actually one of the largest economies in Africa - larger than the economy of most countries - its GDP (gross domestic product) is expected to be $259 billion by the end of 2025
  • Lagos is the major information communications and telecommunications (ICT) hub of West Africa
  • The headquarters of many global companies are based in Lagos, which has opened up thousands of job opportunities in the complex mix of business and professional services needed to support them
  • The Lekki oil refinery (pictured below) is the 7th largest oil refinery in the world, processing 650,000 barrels of oil per day
  • New service industries from around the global are choosing to locate in Lagos’ CBD
  • Eko Atlantic is a joint project between the Nigerian government and private investors, many of these are foreign investors
  • Lagos is home to more tech hubs than any other city in Africa, including a number of start-ups, and is often referred to as 'Africa's Silicon Valley'
  • Lagos' Murtala Muhammed International Airport is the busiest airport in Nigeria for both domestic and international flights, with hundreds of non-stop destinations around the world - it handles around 7 million passengers each year (around half of total air passengers in Nigeria), with around 3 million of these flying internationally, and is the main arrival point for 80% of flights into West Africa
  • Lagos is the centre of the West African film, music, and TV industries
  • The Nollywood film industry is ranked in second place behind Bollywood, and just ahead of the more famous Hollywood
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