By Jemimah Wellington, JKNewsMedia Reporter
AFRICA’s ECONOMIC landscape continues to evolve, with Lagos State reinforcing its status as a dominant financial hub.
Its Gross Domestic Product (GDP) has surged to $259 billion based on purchasing power parity (PPP), solidifying its position as the continent’s second-largest economy, trailing only Cairo, Egypt.
The Lagos Economic Development Update (LEDU) 2025, officially unveiled on Wednesday, revealed that the state’s GDP stood at $259.75 billion in 2023, maintaining its position as Africa’s second-largest city economy by PPP.
Economic growth in the first half of 2024 surged to N27.38 trillion, marking a significant rise from N19.65 trillion in 2023.
This expansion highlights the resilience of Nigeria’s commercial capital amid ongoing economic reforms and infrastructure investments.
However, a tax-to-GDP ratio of just 2.3% underscores the necessity for improved revenue mobilization.
Looking ahead, Lagos State said it has set ambitious targets for the 2025 fiscal year, projecting GDP growth from N54.77 trillion in 2024 to N66.47 trillion in 2025.
The government says real GDP growth is expected to range between 5.02% and 6.49%, driven by an expanding service sector, increased agricultural productivity, and industrial production growth.
Economic stability is also anticipated to be supported by declining petrol prices and a steady naira-to-dollar exchange rate.
Inflation remains a pressing concern, with overall inflation projected at 34.2% and food inflation slightly higher at 34.9%.
Meanwhile, the state’s revenue forecast for 2025 stands at N2.79 trillion, emphasizing the urgent need for fiscal discipline and diversification of income streams.
Moreover, Lagos continues to be a key investment hub for both local and foreign investors, offering vast opportunities in infrastructure development, technology, real estate, and manufacturing.
However, persistent challenges, including high inflation, foreign exchange volatility, and infrastructure deficits, must be tackled to ensure sustainable long-term growth.
Additionally, the National Bureau of Statistics (NBS) has announced plans to rebase Nigeria’s GDP, shifting the base year from 2010 to 2019.
This process will expand the scope of economic activities captured, particularly in emerging sectors such as digital economies, modular refineries, pension fund administration, and social programs like the National Health Insurance Scheme (NHIS) and the Nigerian Social Insurance Trust Fund (NSITF).
Meta Description:
Focus Key Phrases:
News Tags:
News Slug:
Canonical URL:
