With an amazing economic boom, Lagos, Nigeria’s commercial hub, has solidified its position as Africa’s second-largest city economy, behind Cairo, Egypt. Based on purchasing power parity (PPP), the state’s GDP has already risen to an astounding $259.75 billion, according to the Lagos Economic Development Update (LEDU) 2025, which was formally released on Wednesday, March 12.
According to the research, Lagos’ economy grew dramatically in the first half of 2024, rising from ₦19.65 trillion in 2023 to ₦27.38 trillion. Lagos’s GDP is expected to reach ₦66.47 trillion by 2025, growing at a real rate of 5.02% to 6.49%.
Lagos’s rapid progress, driven by strategic investments in technology, infrastructure, and business-friendly laws, is demonstrated by this milestone, according to Governor Babajide Sanwo-Olu. Lagos is resilient, drawing investors and spurring innovation in a number of industries, he said, despite the global economic crisis.
Key issues affecting the state were also discussed in the LEDU report, notably its low tax-to-GDP ratio of 2.3%. Experts caution that although Lagos’ economy is expanding, it needs to strengthen its financial management and revenue collection to maintain its upward trend.
The state government’s future goals include raising ₦2.79 trillion in revenue, strengthening its industrial and service sectors, and combating inflation, which is expected to reach 34.2% in 2025.
Lagos is a prominent actor on the African continent and not simply Nigeria’s economic center thanks to its rapidly expanding economy, which further solidifies its position as a worldwide corporate hub.
