Lagos State has solidified its place as a major economic hub in Africa, with its Gross Domestic Product (GDP) reaching a remarkable $259 billion, based on Purchasing Power Parity (PPP). This achievement, revealed during the official launch of the Lagos Economic Development Update (LEDU) 2025, propels Lagos to the position of the second-largest city economy on the continent, behind only Cairo, Egypt.
This economic leap underscores the effectiveness of the administration led by Governor Babajide Sanwo-Olu, whose strategic focus on enhancing financial performance and fostering growth has clearly paid off. The growth trajectory, outlined in the report, marks a significant achievement for Lagos in the face of global economic challenges and domestic reforms.
Economic Growth and Strategic Development
According to the LEDU 2025 report, Lagos saw impressive growth during the first half of 2024, with its economy expanding to a staggering N27.38 trillion. This is a substantial increase from the previous year’s figure of N19.65 trillion. Such growth highlights the strength and resilience of Nigeria’s commercial capital, especially as the state continues to invest heavily in infrastructure, while also navigating through various economic reforms.
However, the report also highlighted some challenges, particularly in revenue mobilization, pointing out that the tax-to-GDP ratio remains relatively low at 2.3%. This suggests a need for more robust efforts in tax collection and broadening the state’s revenue base, an area the government aims to address in the near future.
Future Projections and Ambitious Growth Plans
Looking ahead, the Lagos State Government has set ambitious targets for continued economic development in its 2025 budget. The state’s GDP is projected to grow from N54.77 trillion in 2024 to N66.47 trillion in 2025, with real GDP growth expectations ranging between 5.02% and 6.49%. These projections further highlight the government’s confidence in its strategies and its commitment to ensuring Lagos remains a key destination for both local and international investors.
The planned growth is expected to be supported by targeted interventions in key sectors including infrastructure, technology, real estate, and manufacturing, providing opportunities for investment and job creation in the city. Governor Sanwo-Olu has repeatedly emphasized that Lagos, with its strategic policies, is positioning itself as a competitive and attractive investment hub for diverse industries.
Governor’s Remarks on Economic Transformation
In his address during the LEDU 2025 launch, Governor Babajide Sanwo-Olu expressed pride in the economic achievements, stating, “Lagos is not just growing; we are leading. With a GDP of $259 billion based on 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.”
Governor Sanwo-Olu further emphasized the importance of economic indices like PPP, which he explained serve as critical indicators of real economic strength, competitiveness, and cost-of-living advantages. “From infrastructure to technology, tourism to manufacturing, we are driving sustainable growth. Lagos remains at the forefront of Africa’s economic transformation, and the best is yet to come,” he said.
The Governor’s remarks highlighted Lagos’ ability to maintain its momentum as a leading economic force, driven by innovative policies and a business-friendly environment that has attracted significant investment.
Lagos’ newfound position as the second-largest city economy in Africa is a testament to its strategic planning and sustained growth. With future projections set for further expansion, Lagos is set to continue attracting investors and businesses alike, driving economic transformation and creating opportunities for its citizens.
