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Lagos Solidifies Position as Africa’s Second-Largest City Economy with $259.75bn GDP
Lagos State has reinforced its status as one of Africa’s leading economic hubs, with its Gross Domestic Product (GDP) reaching $259.75 billion based on Purchasing Power Parity (PPP).
This achievement positions Lagos as the continent’s second-largest city economy, trailing only Cairo, Egypt.
The announcement was made during the launch of the Lagos Economic Development Update (LEDU) 2025, which highlighted the state’s robust economic growth and resilience amid ongoing reforms and infrastructural investments.
According to the report, Lagos’s GDP stood at $259.75 billion in 2023 and surged to N27.38 trillion in the first half of 2024, up from N19.65 trillion in the previous year.
Despite this growth, the report raised concerns about revenue mobilization, noting a tax-to-GDP ratio of 2.3%, which underscores the need for improved fiscal policies.
Governor Babajide Sanwo-Olu celebrated the milestone on his X handle, reaffirming Lagos’s economic dominance and its role as a hub for investment, trade, and development.
“Lagos is not just growing; we are leading. With a GDP of $259 billion based on PPP, we have cemented our place as Africa’s second-largest city economy,” he stated.
The governor emphasized the importance of economic indices like PPP, which reflect real economic strength and competitiveness.
He highlighted Lagos’s commitment to driving sustainable growth through key sectors such as infrastructure, technology, tourism, and manufacturing.
“Lagos remains at the forefront of Africa’s economic transformation, and the best is yet to come,” Sanwo-Olu added.
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