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Lagos is the most populous conurbation in Nigeria with around 8 million people and the second most populous in Africa after Cairo. Formerly the capital of Nigeria, the city is the economic and financial capital of Nigeria.

The three major urban islands of Lagos in Lagos Lagoon are Lagos Island, Ikoyi, and Victoria. These islands are separated from the mainland by the main channel draining the lagoon into the Atlantic, which forms Lagos Harbour. The islands are separated from each other by creeks of varying sizes and are connected to Lagos Island by bridges. However the smaller sections of some creeks have been built over or filled in so today in places there is scarcely any water dividing Lagos Island and Ikoyi, or Victoria Island and Maroko.

Lagos Island contains many of the largest markets in Lagos, its central business district, the central mosque, and the Oba's palace. Though largely derelict, Tinubu Square on Lagos Island is a site of historical importance; it was here that the Amalgamation ceremony that unified the North and South took place in 1914.

Lagos is Nigeria's most prosperous city, and much of the nation's wealth and economic activity are concentrated there. The commercial, financial and business centre of Lagos and of Nigeria remains the business district of Lagos Island, where most of the country's largest banks and financial institutions are located. More than half of Nigeria's industrial capacity is located in Lagos's mainland suburbs, particularly in the Ikeja industrial estate. A wide range of manufactured goods are produced in the city, including machinery, motor vehicles, electronic equipment, chemicals, beer, processed food, and textiles.

The standard of living is higher in Lagos than in the rest of Nigeria, as residents have considerably greater access to food, fresh water, indoor plumbing, and modern technology.

The Port of Lagos is Nigeria's leading port and one of the largest in Africa. It is administered by the Nigerian Port Authority and is split into three main sections: Lagos port, in the main channel next to Lagos Island, no longer used much, Apapa Port (site of the container terminal) and Tin Can Port , both located in Badagry Creek which flows into the Lagos Harbour from the west.

The port handles imports of consumer goods, foodstuffs, motor vehicles, machinery, and industrial raw materials. Its export trade in timber and agricultural products such as cacao and groundnuts has declined since the early 1970s, although the port has seen growing amounts of crude oil exported, with export figures rising between 1997 and 2000. Oil and petroleum products provide 20% of GDP and 95% of foreign exchange earnings in Nigeria as a whole.

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