Lagos State Becomes Africa's Second-Largest City Economy As GDP Hits $259 Billion
Lagos State, under the Governor Babajide Sanwo-Olu-led administration, has cemented its position as one of Africa’s economic powerhouses, with its Gross Domestic Product (GDP) reaching an impressive $259 billion based on Purchasing Power Parity (PPP).
The incredible achievement, revealed on Wednesday during the official launch of the Lagos Economic Development Update (LEDU) 2025, now places Lagos as the second-largest city economy on the continent, behind only Cairo in Egypt.
The report noted that the milestone can be attributed to the strategic initiatives of the State Government to increase economic growth and enhance financial performance.
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 emphasised that the growth highlights the resilience of Nigeria’s commercial capital amid economic reforms and ongoing infrastructure investments. However, the report pointed out that despite the growth, the tax-to-GDP ratio remains low at 2.3%, reflecting the need for enhanced revenue mobilization efforts.
Nevertheless, the Sanwo-Olu administration has set ambitious projections in the 2025 budget for the fiscal year, with expectations for further economic expansion and stability. Accordingly, the State’s GDP is projected to grow from N54.77 trillion in 2024 to N66.47 trillion in 2025. Real GDP growth is expected to range between 5.02% and 6.49%.
The projected growth underscores the avowed commitment of the State Government to ensuring that Lagos remains a key destination for investors looking to tap into Nigeria’s vibrant economic landscape. Lagos continued economic expansion, coupled with strategic policy interventions, presents unique opportunities for investors in infrastructure development, technology, real estate, and manufacturing.
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.
@nairametrics
Gbenga Omotoso
Dr. Obafemi Hamzat
Babajide Sanwo-Olu
Comments
Post a Comment