Lagos State has solidified its status as one of Africa’s top economic powerhouses, with its Gross Domestic Product (GDP) reaching an impressive $259 billion based on Purchasing Power Parity (PPP). This milestone places Lagos as the second-largest city economy on the continent, following Cairo, Egypt.

The announcement was made during the official launch of the Lagos Economic Development Update (LEDU) 2025 on Wednesday. According to the report, Lagos State’s GDP stood at $259.75 billion in 2023, reinforcing its role as Nigeria’s commercial and financial hub.

Lagos Economic Growth in 2024

Lagos recorded significant economic growth in the first half of 2024, expanding to ₦27.38 trillion, up from ₦19.65 trillion in 2023. This strong performance underscores the state’s resilience amid economic reforms and ongoing infrastructure development.

Despite this expansion, Lagos’ tax-to-GDP ratio remains low at 2.3%, highlighting the need for improved revenue generation strategies.

Key Lagos 2025 Budget Projections

Looking ahead, Lagos State is poised for further economic expansion in 2025, with the following key projections:

• GDP Growth: Expected to increase from ₦54.77 trillion in 2024 to ₦66.47 trillion in 2025, with real GDP growth estimated between 5.02% and 6.49%.
• Sectoral Growth: The services sector will continue leading growth, supported by agriculture and industrial production. Stability in fuel prices and exchange rates is expected to enhance economic performance.
• Inflation Forecast: Headline inflation is projected at 34.2%, while food inflation may rise slightly to 34.9%.
• Revenue Projections: The Lagos State Government aims to generate ₦2.79 trillion in revenue for 2025, emphasizing fiscal discipline and revenue diversification.

Investment & Business Opportunities in Lagos

As Nigeria’s largest economy, Lagos remains a prime destination for investors, particularly in infrastructure, technology, real estate, and manufacturing. However, challenges such as inflation, forex volatility, and infrastructure gaps must be addressed to ensure long-term growth.

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Upcoming Changes: Nigeria’s GDP Rebasing

The National Bureau of Statistics (NBS) is set to rebase Nigeria’s GDP in 2025, shifting the base year from 2010 to 2019. This update will enhance economic measurement by incorporating:

• Digital economy growth (e-commerce, fintech, and online services).
• Emerging industries (modular refineries, pension funds, and quarrying).
• Social sector activities (NHIS and NSITF programs).

Lagos’ economic trajectory remains strong, positioning it as a key player in Africa’s evolving financial landscape.

The Lagos State Government has finalized plans to establish an International Financial Centre (LIFC) in collaboration with EnterpriseNGR and key stakeholders to drive capital market growth.

This initiative aims to create a world-class financial ecosystem, attracting foreign investments, enhancing market liquidity, and positioning Nigeria’s financial markets as globally competitive.

Governor Babajide Sanwo-Olu described the Lagos International Financial Centre as a transformational project designed to solidify Lagos as Africa’s leading financial hub. The centre will be strategically located at Eko Atlantic in Victoria Island.

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Fostering Capital Market Growth & Financial Innovation

Sanwo-Olu emphasized that the project will accelerate capital market expansion, encourage public-private partnerships, and drive financial sector innovation in the state.

“As Nigeria’s largest economic and financial hub, Lagos plays a pivotal role in our capital markets. Our licensed exchanges are at the core of this ecosystem, facilitating investment flows, increasing liquidity, and promoting financial literacy,” he stated.

He added that the LIFC will strengthen market infrastructure and unlock new investment opportunities in technology and capital markets development.

A Call for Global Best Practices

Aigboje Aig-Imoukhuede, co-chairman of the project alongside Governor Sanwo-Olu, urged the CEOs of licensed exchanges—including Nigerian Exchange Group (NGX), FMDQ Group Plc., NASD OTC Securities Exchange Limited, and Lagos Commodities and Futures Exchange (LCFE)—to align global best practices with the Lagos financial ecosystem.

He described the LIFC as a “game changer”, calling on exchanges to adopt strategies that enhance liquidity, innovation, and market depth.

Lagos’ Digital Investment Milestone

In a related development, Lagos State has attracted over $1.2 billion in digital investments to boost its digital economy and expand telecom infrastructure.

Governor Sanwo-Olu revealed this during a visit by the Nigerian Communications Commission (NCC) delegation, led by Executive Vice Chairman Aminu Maida, at the Lagos House in Ikeja.

These investments, secured over the last five years, have funded data centers, submarine cables, and network expansion projects. The governor reaffirmed his administration’s commitment to strengthening digital infrastructure through a strategic partnership with NCC, aligning with the Education and Technology pillar of the THEMES+ agenda.

“Our investments in digital infrastructure will be further enhanced through this collaboration with NCC,” Sanwo-Olu stated.

He assured that Lagos State will continue working with NCC to protect critical telecom infrastructure and advance the digital economy for the benefit of residents.

Driving Tech Ecosystem Growth

Lagos State has been actively implementing strategic initiatives to accelerate its digital transformation. The government has outlined plans to increase the tech ecosystem’s contribution to GDP from 3% to 10%, including the launch of a fund-of-funds initiative to co-invest with venture capital firms in Lagos-based tech startups.

Lagos State marked a major milestone in educational advancement as Governor Babajide Sanwo-Olu unveiled Charterhouse Lagos Primary School and initiated the groundbreaking ceremony for its secondary school on Thursday. The $150 million institution, located on Ogombo Road in Lekki, is set to deliver world-class education, blending British academic traditions with Nigerian cultural values.

Represented by the Secretary to the State Government, Abimbola Salu-Hundeyin, Governor Sanwo-Olu expressed pride in launching West Africa’s first British independent school. “This occasion marks a transformative milestone in our journey to redefine educational excellence in Lagos and across Nigeria,” he stated.

The governor highlighted that Charterhouse Lagos, a sister institution to Charterhouse UK, combines a legacy of excellence with innovative learning tailored to Nigeria’s unique context. The school’s curriculum integrates the British national syllabus with Nigerian and African studies, ensuring students are globally competitive while remaining deeply connected to their roots.

“This dual approach prepares our children to thrive in universities worldwide and return as future leaders to drive Nigeria’s prosperity,” Sanwo-Olu added. He emphasized that Charterhouse Lagos will help curb the long-standing trend of Nigerian families sending children abroad for education, keeping families together and reinvesting tuition fees into the local economy.

Spanning 70 hectares, the state-of-the-art campus is designed to attract both local and international students, reinforcing Lagos as a hub of education, innovation, and opportunity. “This project is a resounding vote of confidence in Lagos,” the governor remarked.

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Dignitaries Celebrate Lagos’ Educational Milestone

The event was attended by prominent figures, including:

• Oba Abiodun Ogunbo, Ologombo of Ogombo Kingdom
• Mobolaji Ogunlende, Lagos Commissioner for Youth and Social Development
• Folashade Ambrose-Medebem, Lagos Commissioner for Commerce, Cooperatives, Trade, and Investment
• Mrs. Angela Enuwa, Chairman of PUNCH Nigeria Limited
• Mrs. Wunmi Tunde-Obe, Executive Director of PUNCH Nigeria Limited

Attendees toured the campus, exploring ultramodern classrooms, a music studio, and top-tier sports facilities. Mrs. Enuwa praised the school’s exceptional standards, stating: “The way these children are being taught ensures they have the best platform to maximize opportunities.”

Mrs. Tunde-Obe echoed this sentiment, urging skeptics to visit the campus. “Once you step in, you’ll understand why Charterhouse is a game-changer. Having this institution in Lagos is groundbreaking and something to be proud of,” she said. She also highlighted the economic benefits, noting that the school would attract students from across Africa, generating revenue and global recognition for Nigeria.

Charterhouse Director Highlights Journey Behind the Project

John Todd, Director of Education at Charterhouse, described the launch as the culmination of years of planning and dedication. “No Nigerian family needs to travel abroad for world-class education anymore. Charterhouse Lagos brings that opportunity home,” he said.

Todd also praised the public-private collaboration that made the project possible, stating: “The level of excellence achieved in opening Charterhouse Lagos proves that in Lagos State, anything is possible.”

With the secondary school set to open later this year, Lagos continues to position itself as a leader in educational innovation and excellence.