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.

Sanwo-Olu Grants Approval for Construction of First Bank’s New Headquarters

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.

Lagos State Governor, Babajide Sanwo-Olu, on Wednesday, presented a Certificate of Approval to FirstBank Group for the construction of its iconic 43-storey eco-friendly headquarters in Eko Atlantic City.

Accompanied by his Special Adviser on eGIS and Urban Development, Dr. Olajide Abiodun Babatunde, and General Manager of the Lagos State Building Control Agency (LABSCA), Arc. Gbolahan Oki, Governor Sanwo-Olu handed over the certificate to FirstHoldCo Chairman, Femi Otedola, and FirstBank Group CEO, Olusegun Alebiosu, during the project’s groundbreaking ceremony.

A Landmark Skyscraper for Nigeria’s Financial Sector

Governor Sanwo-Olu praised FirstBank Group for its vision and leadership, commending its audacity to construct a 43-storey skyscraper, which will become Nigeria’s tallest building.

He also lauded the development of Eko Atlantic City, describing it as a model for Africa and attributing its transformation to the bold initiatives of President Bola Tinubu during his tenure as Lagos State Governor.

“I have seen several investments come into Eko Atlantic City, but I believe this FirstBank headquarters is the investment that will redefine its future,” Sanwo-Olu stated.

Eko Atlantic: Africa’s Answer to Dubai

Lagos: Africa’s Financial and Investment Hub

The Governor highlighted the significance of this project in aligning with the state’s vision for Lagos as Africa’s premier financial hub.

“Just yesterday, we laid the foundation for the Lagos International Financial Centre. Our goal is to position Lagos as a global leader in finance and commerce. This city will be a safe, secure, and thriving mega city, setting the pace for financial innovation across Africa,” he said.

Lagos State to Launch International Financial Centre to Boost Capital Market Growth

Sanwo-Olu also encouraged other financial institutions to follow FirstBank’s lead by investing in Eko Atlantic City, pledging to provide a supportive business environment for investors.

“FirstBank has always been a pioneer. Now, it is time for other financial institutions to follow suit. I am ready to facilitate more groundbreaking projects and ensure an enabling environment for investments in Eko Atlantic City,” he added.

Lagos State Deputy Governor, Dr. Obafemi Hamzat; Governor Babajide Sanwo-Olu; Vice President, Senator Kashim Shettima; Ogun State Governor, Prince Dapo Abiodun; First Bank Holdings Board Chairman, Femi Otedola; and First Bank Group MD/CEO, Olusegun Alebiosu, at the groundbreaking ceremony for First Bank’s headquarters tower at Eko Atlantic City, Victoria Island, on March 5, 2025.

High-Profile Attendance at the Groundbreaking Event

The event was attended by Vice President Kashim Shettima, Governors Dapo Abiodun (Ogun) and Lucky Aiyedatiwa (Ondo), Lagos State Deputy Governor Dr. Obafemi Hamzat, and former Senate President Dr. Bukola Saraki.

Other notable figures included business moguls Alhaji Aliko Dangote, Femi Otedola, Dr. Deji Adeleke, Alhaji Mohammed Indimi, Senator Daisy Danjuma, and Gilbert and Roland Chagoury.

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.

Eko Atlantic: Africa’s Answer to Dubai

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.