The Gross Domestic Product (GDP) of Lagos State has hit a phenomenal $259 billion based on purchasing power parity (PPP).
This was made known during the official launch of the Lagos Economic Development Update (LEDU) 2025 on Wednesday.
Governor Babajide Sanwo-Olu disclosed this in a statement posted on his social media handles.
With the development, Lagos is now the second-largest economy on the continent, with Cairo, Egypt being in the lead.
According to the report, the state’s Gross Domestic Product (GDP) stood at US$259.75 billion in 2023.
PPPs, used to determine price level differences across countries, tell how many currency units a given quantity of goods and services cost in different countries.
The Lagos economy recorded significant growth in the first half of 2024, expanding to N27.38 trillion, a remarkable increase from N19.65 trillion in 2023, a testament to the city’s resilience amid economic reforms and ongoing infrastructural investments.
“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,” Sanwo-Olu said.
He noted that economic indices like PPP are crucial as 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,” he added.
Despite this growth, the tax-to-GDP ratio, however, remained low at 2.3 per cent.
The state’s GDP is projected to grow from N54.77 trillion in 2024 to N66.47 trillion in 2025, while real GDP growth is expected to range between 5.02 per cent and 6.49 per cent.
The service sector will continue its expansion, complemented by improvements in agriculture and industrial production. Economic stability is expected to be aided by a decline in PMS (petrol) prices and a stable naira/dollar exchange rate.
Headline inflation is projected to be 34.2 per cent, with food inflation slightly higher at 34.9 per cent.
The Lagos State Government projects revenue generation of N2.79 trillion for 2025.
