Lagos State has solidified its position as one of Africa’s leading economic hubs, with its Gross Domestic Product soaring to $259.75 billion based on Purchasing Power Parity.
This milestone makes Nigeria’s commercial capital the second-largest city economy on the continent, trailing only Cairo, Egypt.
The announcement was made on Wednesday during the launch of the Lagos Economic Development Update 2025.
The report underscored Lagos’s continued economic expansion, highlighting its resilience amid ongoing reforms and infrastructural investments.
According to the report, the state’s GDP stood at $259.75 billion in 2023 and witnessed remarkable growth in the first half of 2024, expanding to N27.38 trillion from N19.65 trillion in the previous year.
This surge reflects Lagos’s economic strength and its role as a hub for trade, investment, and development.
Despite the impressive growth, the report highlighted concerns over revenue mobilisation, with the state’s tax-to-GDP ratio recorded at 2.3%, indicating a need for improved fiscal policies.
Lagos State Governor, Babajide Sanwo-Olu, took to his X handle to celebrate the state’s latest economic milestone.
The governor reaffirmed Lagos’s economic dominance, citing its GDP of $259 billion based on PPP.
He also emphasised the state’s role as a powerhouse for investment, trade, and development.
Sanwo-Olu highlighted the significance of economic indices such as PPP, which reflect real economic strength and competitiveness.
“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,” he said.
He further underscored the state’s commitment to fostering economic expansion through key sectors, including infrastructure, technology, tourism, and manufacturing.
“Lagos remains at the forefront of Africa’s economic transformation, and the best is yet to come,” the governor said
