Lagos State has officially cemented its place as one of Africa’s economic giants, with its Gross Domestic Product (GDP) soaring to $259.75 billion (based on Purchasing Power Parity). This remarkable achievement positions Lagos as the second-largest city economy in Africa, trailing only Cairo, Egypt.
The milestone was revealed at the official launch of the Lagos Economic Development Update (LEDU) 2025, where state officials highlighted key performance indicators and outlined the economic outlook for the year ahead.
In the first half of 2024 alone, Lagos’ economy expanded to ₦27.38 trillion, up from ₦19.65 trillion in 2023—a testament to its resilience amid economic reforms and infrastructural development.
Yet, despite the growth, Lagos still operates with a low tax-to-GDP ratio of just 2.3%, prompting the state government to explore new revenue channels. One of such is a proposed ₦500 entertainment tax, expected to bring in ₦20 billion annually.
Lagos is setting ambitious goals for 2025, with projections showing GDP could grow to ₦66.47 trillion. Real GDP growth is expected to range between 5.02% and 6.49%, driven largely by service sector expansion, improvements in agriculture, and industrial output.
Other key projections include:
Revenue Target: ₦2.79 trillion
Headline Inflation: 34.2%
Food Inflation: 34.9%
Macroeconomic Assumptions: Stable naira exchange and reduced PMS (fuel) prices
With its growing economy, Lagos remains a top destination for Diaspora investors seeking opportunities in infrastructure, tech, real estate, and manufacturing. But challenges like high inflation, foreign exchange volatility, and infrastructure gaps must be addressed to ensure sustainable growth.
Meanwhile, the National Bureau of Statistics (NBS) is set to rebase Nigeria’s national GDP, changing the base year from 2010 to 2019. This move will reflect more current economic activities, including e-commerce, fintech, pension services, and social insurance programs, offering a clearer picture of the country’s evolving economy.
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