Based on purchasing power parity (PPP), Lagos State’s GDP has reached an astounding $259 billion. This was announced on Wednesday during the Lagos Economic Development Update (LEDU) 2025 official launch.
This was revealed by Governor Babajide Sanwo-Olu in a statement that was shared on social media. Lagos now has the second-largest economy on the continent, behind Cairo, Egypt, as a result of the development. The state’s Gross Domestic Product (GDP) in 2023 was US$259.75 billion, the report available to BrandSpur business and economy news desk states.
PPPs describe how many currency units a specific quantity of goods and services costs in various countries and are used to calculate price level variations across nations. Lagos’ economy grew significantly in the first half of 2024, reaching N27.38 trillion, a stunning gain from N19.65 trillion in 2023.
Continuing, this development is a monument to the city’s resilience in the face of continued infrastructure investments and economic changes.
According to the Lagos State Governor: “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.”
Furthering, he pointed out that because they show competitiveness, cost-of-living advantage, and actual economic strength, economic indexes like PPP are essential. He said: “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.”
The tax-to-GDP ratio, however, stayed modest at 2.3% despite this increase. While real GDP growth is anticipated to range between 5.02 and 6.49 percent, the state’s GDP is predicted to increase from N54.77 trillion in 2024 to N66.47 trillion in 2025. Alongside advancements in industrial and agricultural production, the service sector will keep growing.
However, it is anticipated that a steady naira/dollar exchange rate and a drop in PMS (petrol) prices will contribute to economic stability. It is anticipated that headline inflation will be 34.2%, while food inflation will be a little higher at 34.9%. For 2025, the Lagos State Government anticipates generating N2.79 trillion in income.
