Lagos Becomes Africa’s Second-Largest City Economy With $259 Billion GDP

Lagos State has solidified its position as one of Africa’s economic powerhouses, with its Gross Domestic Product (GDP) reaching $259 billion based on purchasing power parity (PPP). This milestone makes Lagos the second-largest city economy on the continent, behind Cairo.

The announcement was made on Wednesday during the official launch of the Lagos Economic Development Update (LEDU) 2025. According to the report, Lagos recorded a GDP of $259.75 billion in 2023 and saw significant economic growth in the first half of 2024, with its economy expanding to N27.38 trillion from N19.65 trillion in 2023.

This growth underscores Lagos’s resilience amid economic reforms and ongoing infrastructure investments. However, the state’s tax-to-GDP ratio remains low at 2.3%, highlighting the need for improved revenue generation.

Looking ahead, the Lagos State Government has set ambitious economic projections for 2025, aiming for further expansion and stability.