Lagos State, Nigeria’s commercial capital, has achieved a significant economic milestone. The state’s Gross Domestic Product (GDP) has risen to $259.75 billion based on Purchasing Power Parity (PPP).
This substantial growth has placed Lagos state as one of Africa’s economic driving force.
The economic milestone was disclosed during the official launch of the Lagos Economic Development Update (LEDU) 2025 on Wednesday, March 12.
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The Lagos Economic Development Update (LEDU) 2025 report highlighted the state’s remarkable economic strength. Despite facing economic reforms and challenges, the states economy has continued to thrive.
The report highlighted that state’s GDP recorded a significant growth in the first half of 2024, reaching N27.38 trillion. This represents a substantial increase from N19.65 trillion in 2023.
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The report further noted that Lagos has become the second-largest economy on the continent. The state’s impressive development has enabled it to surpass many other African cities. Only Cairo, Egypt, has a larger economy.
This achievement is a proof of the states economic importance and its potential for continuous growth.
However, the report also emphasizes the need for enhanced revenue mobilization efforts. Despite its impressive economic growth, Lagos’ tax-to-GDP ratio remains low at 2.3%.
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This revealed the need for the state government to seek new revenue streams and improve its tax collection strategy.
To address this challenge, the Lagos State government noted that it has set ambitious projections for 2025. The government expects the state’s GDP to grow from N54.77 trillion in 2024 to N66.47 trillion in 2025.
This represents a significant increase and demonstrates the government’s confidence in the state’s economic potential.
The government also anticipates the real GDP growth rate to be between 5.02% and 6.49% in 2025. This growth will be driven by the service sector, which is expected to continue its expansion trajectory. Improvements in agriculture and industrial production will also contribute to the state’s economic growth.
In addition to these projections, the government also expects the continued decline in petrol prices and a stable naira/dollar exchange rate to aid economic stability.
However, the report also forecasts a headline inflation rate of 34.2% and a food inflation rate of 34.9% for 2025.
Finally, the Lagos State government has projected that it will generate N2.79 trillion in revenue for 2025. This will require increased fiscal discipline and diversification of revenue sources.
The government highlighted its commitment to achieving this goal and ensuring that Lagos remains one of Africa’s leading economies.
