LAGOS STATE BECOMES AFRICA’S SECOND-LARGEST CITY ECONOMY WITH GDP REACHING $259B
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Lagos State’s Gross Domestic Product (GDP), measured by Purchasing Power Parity (PPP), reached an astounding $259 billion, solidifying its status as one of Africa’s economic superpowers under the leadership of Governor Babajide Sanwo-Olu.
At the official launch of the Lagos Economic Development Update (LEDU) 2025 on Wednesday, the remarkable accomplishment was made public. It now ranks Lagos as the continent’s second-largest city economy, after Cairo, Egypt.
The milestone can be ascribed to the State Government’s strategic efforts to boost economic growth and improve financial performance, the study stated.
According to the report, “The Lagos economy recorded significant growth in the first half of 2024, expanding to N27.38 trillion, which is a substantial increase from N19.65 trillion in 2023”.
It emphasized that despite economic reforms and continuous infrastructural improvements, the rise demonstrates the commercial capital of Nigeria’s resilience. Nevertheless, the research noted that even with the expansion, the tax-to-GDP ratio is still low at 2.3%, indicating the need for more aggressive revenue mobilization measures.
In spite of this, the Sanwo-Olu administration has set high goals for the fiscal year 2025 in the budget, anticipating stable growth and stability. In light of this, it is anticipated that the State’s GDP will increase from N54.77 trillion in 2024 to N66.47 trillion next year. The range of anticipated real GDP growth is 5.02% to 6.49%.
The State Government’s declared commitment to making sure Lagos continues to be a top location for investors wishing to take advantage of Nigeria’s thriving economy is demonstrated by the anticipated increase. Lagos offers special prospects for investment in manufacturing, real estate, technology, and infrastructure development due to its sustained economic growth and well-timed legislative changes.
Commenting on the development, Governor Babajide Sanwo-Olu said, “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”.
“Economic indices like PPP are crucial. They highlight real economic strength, competitiveness, and the cost-of-living advantage. 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”, Sanwo-Olu stated
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