Lagos, a city pulsating with energy and ambition, has marked a monumental milestone, now ranking as Africa’s second-largest economy, trailing only behind the bustling metropolis of Cairo, Egypt. Just pause for a moment to ponder this achievement. It isn’t just a tale of numbers but a testimony to the relentless spirit that courses through the veins of Lagos.
Reflecting on the first half of 2024, Lagos’s economy unveiled its remarkable resilience, with a staggering growth to ₦27.38 trillion, soaring from ₦19.65 trillion in 2023. What lies at the heart of this surge? The answer may lie in the city’s robust economic framework, buoyed by impactful reforms and infrastructural advancements. Yet, there’s a chink in the armor: the tax-to-GDP ratio stands at a mere 2.3%. This statistic beckons a broader question—how can Lagos boost its revenue mobilization, ensuring robust financial health in the long run?
2025 Budget Projections
Peering into the horizon, the Lagos State government presents a visionary plan for the 2025 fiscal year. Among the intriguing figures is the expected economic growth, with the state’s GDP anticipated to expand from ₦54.77 trillion in 2024 to an ambitious ₦66.47 trillion in 2025. Projected real GDP growth hovers between a promising 5.02% and 6.49%. These aren’t mere digits; they are dreams wrapped in numbers.
- GDP Growth: An anticipated rise to ₦66.47 trillion in 2025 speaks volumes of potential and perseverance.
- Sectoral Expansion: The services sector promises to broaden its horizons, while agriculture and industry show burgeoning potential. Could the stable naira-to-dollar exchange be what underpins this trajectory?
- Inflation Forecast: Prognostications are at 34.2% for headline inflation, edging forward with food inflation at 34.9%.
- Revenue Projections: Aiming for a leap to ₦2.79 trillion in revenue, the emphasis is clear—fiscal discipline and diversified sources are not optional but essential.
Lagos continues to stand tall as a beacon for investors, offering a vibrant plunge into Nigeria’s ever-evolving economic canvas. Here lies a realm rich with prospects—from infrastructure to technology, and from real estate to manufacturing. But what of the shadows lurking amidst these opportunities? High inflation, erratic foreign exchange, and infrastructure deficits cast their doubt and challenge the narrative of sustainable growth.
On a broader national spectrum, the tide of change is evident as the National Bureau of Statistics (NBS) embarks on an ambitious quest to rebase Nigeria’s GDP, shifting the base year from 2010 to 2019. Have you ever considered the profound impact of such an update? Not merely number crunching, it’s about re sketching the economic portrait of a nation, factoring in vibrant growth in sectors since last revisiting in 2014.
This rebasing, like a watchmaker meticulously crafting each gear, will integrate the burgeoning marine and blue economy, arts, culture, tourism, and cutting-edge ICT developments. As e-commerce weaves itself into the societal fabric, ensuring its rightful place in this new economic landscape is paramount.
As preparations advance, we anticipate a transformative impact on economic planning and policy formulation, offering an intricate tapestry of Nigeria’s economic structure. If hindsight in 2014 branded Nigeria as Africa’s largest economy, what fresh insights might this update unveil?
Both Lagos State’s economic vibrancy and the impending national GDP rebasing paint a compelling picture of a nation in motion. It’s a story of evolution and progress, dialectics of struggles and triumphs—the strategic planning and harnessing of emerging sectors remain the lodestar guiding Nigeria’s journey into a future brimming with promise.
Edited By Ali Musa
Axadle Times International–Monitoring.
