Lagos State has solidified its status as an economic powerhouse in Africa, with its Gross Domestic Product (GDP) reaching $259.75 billion in 2023, according to purchasing power parity (PPP). This milestone ranks Lagos as the second-largest city economy on the continent, trailing only Cairo, Egypt.
The announcement was made during the official launch of the Lagos Economic Development Update (LEDU) 2025 on Wednesday.
The report highlighted Lagos’ impressive economic growth, with the state’s economy expanding to N27.38 trillion in the first half of 2024, a significant rise from N19.65 trillion in 2023. Looking ahead, Lagos projects its GDP to grow from N54.77 trillion in 2024 to N66.47 trillion in 2025, driven by growth in the service sector, agriculture, and industrial production.
Despite the strong economic performance, the report flagged concerns over Lagos’ low tax-to-GDP ratio of 2.3% and the need for stronger revenue mobilization efforts.
With a projected N2.79 trillion revenue target for 2025 and inflation expected at 34.2%, Lagos aims to balance economic expansion with fiscal discipline, positioning itself as a prime investment hub in technology, infrastructure, and manufacturing.
This update comes as Nigeria prepares to rebase its GDP in 2025, shifting the base year from 2010 to 2019, a move expected to capture the country’s growing digital economy, emerging sectors, and social programs.
Lagos’ economic surge reaffirms its role as Nigeria’s commercial capital and a strategic destination for investors seeking opportunities in Africa’s largest economy.
