Lagos State has solidified its position as one of Africa’s leading economic powerhouses, with its Gross Domestic Product (GDP) soaring to $259 billion based on Purchasing Power Parity (PPP).
This milestone, announced yesterday during the launch of the Lagos Economic Development Update (LEDU) 2025, places Lagos as the second-largest city economy on the continent, trailing only Cairo, Egypt.
According to the report, Lagos recorded significant economic growth in the first half of 2024, expanding to N27.38 trillion, a substantial rise from N19.65 trillion in 2023.
This growth underscores the state’s resilience amid Nigeria’s economic reforms and continued investment in infrastructure.
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The report attributed the economic surge to strategic policies implemented by Governor Babajide Sanwo-Olu-led administration aimed at enhancing financial performance and driving economic expansion.
However, despite the impressive growth, the tax-to-GDP ratio remains low at 2.3%, highlighting the need for improved revenue generation strategies.
Looking ahead, the 2025 fiscal projections reflect Lagos State’s ambition to sustain its upward trajectory.
The GDP is expected to grow from N54.77 trillion in 2024 to N66.47 trillion in 2025, with real GDP growth forecasted to range between 5.02% and 6.49%.
Governor Babajide Sanwo-Olu, speaking on the achievement, reaffirmed the state’ role as a driver of Africa’s economic transformation:
“Lagos is not just growing; we are leading. With a GDP of $259 billion based on Purchasing Power Parity (PPP), we have cemented our place as Africa’s second-largest city economy.
“This milestone is more than a number; it reflects the strength of our economy, the resilience of our people, and our city’s role as a hub for investment, trade, and opportunity.”
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He further emphasised that economic indices like PPP highlight Lagos’ competitiveness and cost-of-living advantage.
He added that the state is driving sustainable growth across key sectors, including infrastructure, technology, tourism, and manufacturing.
