Lagos becomes Africa’s second largest city economy as GDP hits $259 billion

Lagos State has cemented its position as one of Africa’s economic powerhouses, with its Gross Domestic Product (GDP) hitting $259 billion based on purchasing power parity (PPP).

This milestone places Lagos as the second-largest city economy on the continent.

This was revealed during the official launch of the Lagos Economic Development Update (LEDU) 2025 on Wednesday, March 12, 2027.

According to the report, the state ranks as Africa’s second-largest city economy by purchasing power parity (PPP), following Cairo.

The report showed that the state’s Gross Domestic Product (GDP) stood at US$259.75 billion in 2023.

It is also noted that the Lagos economy recorded significant growth in the first half of 2024, expanding to N27.38 trillion, a substantial increase from N19.65 trillion in 2023.

This development highlights the resilience of Nigeria’s commercial capital amid economic reforms and ongoing infrastructural investments.

Despite this growth, the tax-to-GDP ratio remains low at 2.3%, reflecting the need for enhanced revenue mobilization efforts.

Looking ahead, the Lagos State Government has set ambitious projections for the 2025 fiscal year, with expectations for further economic expansion and stability. 

The key assumptions include:

The Lagos State Governor, Babajide Sanwo-Olu confidently took to his instagram;

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.

Lagos remains at the forefront of Africa’s economic transformation, and the best is yet to come.