KEY POINTS
- Lagos holds the position as the second-largest economic center of Africa while showcasing a GDP of $259 billion.
- According to the official data the Nigerian economy grew by N7.73 trillion during the period of 2023 until it reached N27.38 trillion in 2024.
- Apart from 2023 the Lagos State Government predicts a GDP trajectory up to N46.47 trillion during 2025.
The economic center of Africa now includes Lagos State because its GDP exceeds $259 billion through purchasing power parity measures. Lagos maintains position as the second biggest city economy in Africa behind only Cairo.
Economic milestone and growth trajectory
The announcement was revealed at the March 12th 2027 launch of the Lagos Economic Development Update (LEDU) 2025. Africa’s second-largest city economy GDP figures for Lagos reached $259.75 billion in 2023 as per the released report which showed substantial economic development.
The state economy of Lagos expanded significantly during the first part of 2024 through an increase from N19.65 trillion in 2023 to N27.38 trillion. Lagos stands strong economically because of ongoing reforms and implementation of infrastructure development projects.
The study pointed out how Lagos needed enhanced revenue mobilization strategies because its tax-to-GDP ratio stood at 2.3 percent.
Africa’s second-largest city economy projections for 2025,
For the upcoming five years the Lagos State Government plans to pursue multiple economic objectives that include sustaining development while ensuring stability. Key projections include:
Africa’s second-largest city economy GDP forecast projects a N54.77 trillion initial value that will expand to N66.47 trillion during 2025 with possible real growth spanning from 5.02 percent to 6.49 percent.
The economic engine of Lagos State will increase its output because the service industry will expand while farming and manufacturing sectors retain their growth momentum. The economic stability will receive support from declining petrol costs and stable exchange rates between naira and dollar.
Expenditure review demonstrates that both headline inflation and food inflation will reach 34.2 percent and 34.9 percent respectively for 2024.
Due to the necessary requirement of revenue discipline and diversification in 2025 Lagos State has set its revenue expectation at N2.79 trillion.
Implications for investors and businesses
The city of Lagos appeals to investors who want to develop its infrastructure plus use its technological and real estate potential along with manufacturing sectors.
Business experts advise that Lagos benefits from its massive growing economy yet the state faces pressing matters regarding inflation together with foreign exchange instability and insufficient infrastructure which require solutions for enduring development.
Nigeria’s GDP rebasing and economic insights
This year the National Bureau of Statistics (NBS) plans to reset Nigeria’s Gross Domestic Product (GDP) bases that currently stand at 2010 but will change to 2019. The labor will implement updated methods to monitor economic activity which includes:
– Digital Economy: Inclusion of e-commerce, fintech, and online services.
The rebasing strategy includes information derived from modular refineries together with pension fund administrators and quarrying industry activities.
Social Programs will use activities related to both the National Health Insurance Scheme (NHIS) and Nigerian Social Insurance Trust Fund (NSITF).
The economic rebasing effort reflects Nigeria’s modernizing economy by showing accurate growth of emerging sectors.
