Sanwo-Olu brags as Lagos’ GDP hit $259bn, becomes ‘Africa’s second largest city economy’
Governor Babajide Sanwo-Olu of Lagos state has said the state’s Gross Domestic Product (GDP) based on purchasing power parity (PPP) hit $259.75 billion in 2023.
The milestone was announced during the official launch of the Lagos Economic Development Update (LEDU) 2025 on Wednesday, according to a social media post by Sanwo-Olu.
PPPs are used to determine price level differences across countries. They tell us how many currency units a given quantity of goods and services costs in different countries.
According to the governor, Lagos has become the second-largest city economy on the continent, only behind the Egyptian capital, Cairo, due to its impressive development.
“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,” Sanwo-Olu said.
“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.”
The state’s economy reportedly witnessed significant growth in the first half (H1) of 2024, expanding to N27.38 trillion – up from N19.65 trillion recorded in 2023.
However, the region’s tax-to-GDP ratio remains low at 2.3 percent.
On 2025 projections, the Lagos government said it expects further economic expansion and stability.
The state highlighted key assumptions to include GDP projected to grow from N54.77 trillion in 2024 to N66.47 trillion in 2025 and real GDP growth is expected to range between 5.02 percent and 6.49 percent.
“The service sector will continue its expansion, complemented by improvements in agriculture and industrial production,” the report added.
“Economic stability is expected to be aided by a decline in PMS (petrol) prices and a stable naira/dollar exchange rate.
“Headline inflation is projected to be 34.2 percent, with food inflation slightly higher at 34.9 percent.”
The state government said it also anticipates generating N2.79 trillion in revenue for 2025, stressing the need for increased fiscal discipline and diversification of revenue sources.
