By Funke Cole
The famous saying, “if you can dream it, you get it” becomes apposite in describing the level of commitment and faith by those who envisioned and dreamt about the present Lagos State that’s the talk of town today.
In the beginning Lagos State was just a dream. Yes, just a dream! But what’s the place of dream in the affairs of men one may be tempted to ask?
Of course, dreams are essential to life. And isn’t that why the prominent American social activist, Harriet Tubman, once said: ‘Every great dream begins with a dreamer. Always remember, you have within you the strength, the patience, and the passion to reach for the stars to change the world’.
Indeed like Tubman, Asiwaju Bola Tinubu (now President of the Federal Republic of Nigeria) once envisaged that Lagos State was going to be a world class economy and that perhaps explained his future-forward planning to achieve its utmost desire for the Centre of Excellence while he was the governor eons ago.
Fast forward to 2025, that vision has crystalised with Lagos State now eminently occupying the enviable position of the second most thriving economy in Africa after Egypt! It’s instructive to note that since Tinubu’s exit as the governor, successive administrations have pursued his dream to the hilt, especially incumbent Governor Babajide Sanwo-Olu.
In the last six years, the vision of the forerunner has really come alive.
During his first term, the governor’s action plans, which encapsulated in the T. H. E. M.E agenda, saw lots of turnkey projects conceived and delivered. The tempo of activities within the socioeconomic frontiers hasn’t abated with the reinforcement of the agenda under the T. H.E.M.E + programme the residents have been the better for it ultimately.
The latest statistics speak to this lofty heights and achievement of Lagos State, which only about two decades away showed no such promises. From available information, Lagos state has cemented its position as one of Africa’s economic powerhouses, with its Gross Domestic Product (GDP) reaching an impressive $259 billion based on purchasing power parity.
Lending credence to the above is the report contained in the Lagos Economic Development Update (LEDU) 2025 unveiled recently by the government. According to the report, the state’s GDP stood at $259.75 billion in 2023.
The Lagos economy recorded significant growth in the first half of 2024, expanding to N27.38 trillion, a substantial increase from N19.65 trillion in 2023. This growth highlights the resilience of Nigeria’s commercial capital amid economic reforms and ongoing infrastructural investments. Despite this growth, the tax-to-GDP ratio remains low at 2.3%, reflecting the need for enhanced revenue mobilisation efforts.
Looking ahead, the Lagos State government has set ambitious projections for the 2025 fiscal year, with expectations for further economic expansion and stability. The key assumptions are that the state’s GDP is projected to grow from N54.77 trillion in 2024 to N66.47 trillion in 2025. Real GDP growth is expected to range between 5.02% and 6.49%.
The state government anticipates generating N2.79 trillion in revenue for 2025, emphasising the need for increased fiscal discipline and diversification of revenue sources. Lagos remains a key destination for investors looking to tap into Nigeria’s vibrant economic landscape. The state’s continued economic expansion, coupled with strategic policy interventions, presents opportunities in infrastructure development, technology, real estate, and manufacturing.
At the presentation of the report, the Commissioner for Ministry of Economic Planning and Budget, Mr. Ope George emphasised that the 2025 LEDU provides critical insights to guide policy decisions. He reiterated the state’s commitment to fiscal sustainability, economic diversification, and infrastructure development, aligning with Sanwo-Olu’s “Budget of Sustainability”.
Themed “Lagos Economic Outlook: Charting a Resilient Path Towards a Sustainable Future”, this year’s LEDU underscores our commitment to evidence-based policymaking, fiscal sustainability, and inclusive development, George said.
Delivering the keynote address titled. “Bridging the Revenue Gap in Lagos: Innovative Pathways to Enhanced Revenue Mobilisation”, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele emphasised the need for Lagos to increase its revenue generation to match its economic ambitions.
Oyedele observed: ‘Lagos is big, but its revenue is small, collecting less than 2% of GDP. While some progress has been made, we still have a big room for improvement, and the time to change this narrative is now’. He highlighted three key strategies for Lagos to improve revenue collection. First, property taxation could unlock billions of Naira if inefficiencies in land titling and valuation are addressed. The tax czar pointed out that cities like Bogotá generate over $1 billion annually from property taxes, while Lagos collects far less despite having one of Africa’s most valuable real estate markets.
Second, he stressed the need to expand the personal income tax base, particularly by leveraging technology to capture high-income earners and the informal sector. Lagos, home to Nigeria’s wealthiest individuals and a booming digital economy, must ensure fair taxation without stifling business growth.
‘A better approach to taxation is not to tax the seed, but the fruit. Let businesses grow, and tax them fairly on their successes’, he said. He also called for formalising the informal sector, particularly among digital entrepreneurs, content creators, and event planners, to capture untapped revenue.
Oyedele urged bold action, comparing Lagos’ potential to global success stories like Dubai and Singapore. ‘With the right reforms, Lagos can generate up to N5 trillion annually in Internally Generated Revenue’, he said, stressing the need for leadership, innovation, and collective responsibility.
Earlier, the Permanent Secretary of the ministry, Mr. Olayinka Ojo highlighted the need for resilience in the face of inflation, global uncertainties, and revenue constraints. He urged stakeholders to collaborate on solutions that would sustain Lagos’ position as Nigeria’s economic hub.
‘As the economic nerve centre of Nigeria, Lagos continues to set the pace. However, we must address macroeconomic uncertainties, inflationary pressures, fiscal constraints, and global economic headwinds’, Ojo stated.
Lagos is undoubtedly set to turn a positive bend, economically.