~Willy Okonji, Lagos-
Lagos State has solidified its status as one of Africa’s economic powerhouses, with its Gross Domestic Product (GDP) reaching $259 billion based on purchasing power parity (PPP). This milestone makes Lagos the second-largest city economy on the continent, following Cairo.
The announcement was made during the official launch of the Lagos Economic Development Update (LEDU) 2025 on Wednesday, March 12, 2027.
“Lagos remains the engine of Nigeria’s economy and a critical player in Africa’s growth. Our latest economic data confirms our resilience, strategic positioning, and potential for even greater expansion,” said Lagos State Governor, [Governor’s Name].
Sustained Growth Amid Challenges
According to the report, Lagos’ GDP stood at $259.75 billion in 2023, with a notable surge in the first half of 2024, reaching N27.38 trillion—up from N19.65 trillion in 2023.
Economic analysts attribute this growth to ongoing reforms, infrastructure investments, and sectoral diversification. However, concerns remain over Lagos’ low tax-to-GDP ratio of 2.3%.
“While our economy is expanding, we must enhance revenue generation to sustain long-term development,” said [Commissioner for Finance].
2025 Economic Projections
Looking ahead, Lagos State has set ambitious projections for the 2025 fiscal year:
- GDP Growth: Expected to rise from N54.77 trillion in 2024 to N66.47 trillion in 2025, with real GDP growth projected between 5.02% and 6.49%.
- Sectoral Growth: The service sector will lead expansion, supported by agriculture and industrial production. Economic stability is expected to improve with lower petrol prices and a stable naira-dollar exchange rate.
- Inflation Forecast: Headline inflation is projected at 34.2%, with food inflation slightly higher at 34.9%.
- Revenue Projections: The state government aims to generate N2.79 trillion in revenue, emphasizing fiscal discipline and diversification of income sources.
Opportunities for Investors
With its expanding economy, Lagos remains a top destination for investors, particularly in infrastructure, technology, real estate, and manufacturing.
“We are creating an enabling environment for businesses to thrive. Our focus is on sustainable growth that attracts local and international investors,” said [Lagos Economic Planning Commissioner].
Despite its economic size, challenges such as inflation, foreign exchange volatility, and infrastructure deficits remain hurdles that must be addressed to maintain growth momentum.
National GDP Rebase and Implications
Meanwhile, the National Bureau of Statistics (NBS) is set to rebase Nigeria’s GDP this year, shifting the base year from 2010 to 2019. This update will capture emerging sectors such as e-commerce, fintech, modular refineries, and social insurance programs.
“The rebasing will provide a more accurate picture of Nigeria’s economy, ensuring better policy decisions and investment planning,” said an NBS spokesperson.
With its strengthened position as Africa’s second-largest city economy, Lagos is poised to play an even more significant role in Nigeria’s economic transformation.
