Lagos State Commissioner for Economic Planning and Budget, Mr Ope George, on Tuesday, revealed that Lagos State’s Gross Domestic Product (GDP) increased to ₦14.85 trillion in the first quarter of 2025, with a real growth rate of 1.75 per cent, a further slowdown from 3.01 per cent in Ǫ4 and 3.88 per cent in Ǫ3 2024.
Speaking on Tuesday during a Budget Consultative Forum for the 2026 budget held for stakeholders and residents of the Ikeja Division of the state, George disclosed that the service sector remained dominant, contributing over 90 per cent of total output. However, its growth momentum had softened, mirroring broader macroeconomic pressures and tighter consumer demand.
“Notably, the industrial sector maintained its upward trend from Ǫ4, buoyed by a manufacturing rebound that suggests latent productive strength. Agriculture also returned to growth, driven by gains in crop production, livestock, and fisheries. These signals point to a gradually diversifying economy, though still anchored on Lagos’ urban services base.
“Lagos has officially emerged as the fastest-growing tech city in the world in 2025, leading Dealroom’s Global Tech Ecosystem Index ahead of Istanbul, Pune, and Mumbai. With just a $1.6k GDP per capita, Lagos has outperformed larger economies in enterprise value growth, unicorn creation, and startup resilience despite structural bottlenecks.
“Lagos has been named the 14th best city in the world, and 2nd in Africa for nightlife in 2025 by Time Out, reflecting rising global recognition and strong local approval (79 per cent). While this boosts Lagos’ cultural brand, the real value lies in leveraging the nightlife sector as a formal economic asset, driving tourism, youth employment, and revenue.
The ranking signals opportunity but also competition. As cities like Cape Town and Marrakech scale up their night economies, Lagos must invest in safe, inclusive, and well-regulated night zones to translate global attention into sustainable economic gains.”
George stated that the Sanwo-Olu administration is committed to a participatory and all-inclusive governance process.
“In the same vein of achieving an inclusive government, this administration’s agenda is now THEMES+ with specifics on Gender Equality, Social Inclusion, and Youth Engagement.
“To achieve this agenda, the Lagos State IGR must be strengthened by minimising waste and blocking bottlenecks. We make a passionate appeal to all the citizens of Lagos to fulfil their civic responsibilities by paying their taxes when due, as the optimal performance of the Budget is strongly dependent on revenue generated in the State.
“We acknowledge the challenges caused by the fuel subsidy removal, this administration will continue to ensure the Citizens have a good quality of life as demonstrated by various interventions in Agriculture to boost food security, the Transportation sector (discount in bus fares, the introduction of CNG buses), and the Health sector (free medical services for children, the elderly and pregnant women).
Consequently, you are all invited to comment on our budget performance and suggestions on preferred focus areas for the State in the next Budget Cycle (Y2026).”
Delivering the vote of thanks, the Special Adviser to the Governor on Economic Planning and Budget, Mr Olalekan Balogun, said over the years, the active participation of stakeholders and residents in this process has continued to provide valuable insights that shape the state’s developmental agenda, setting clear pathways for sustainable economic growth, and strengthen the collective resolve to build a Lagos that works for all.
“Your contribution also reinforces the All-Inclusive Agenda of Governor Babajide Sanwo-Olu’s administration, guided by the principle that No One Must Be Left Behind, irrespective of age, gender, or social standing.
“We deeply appreciate the presence of our Traditional Rulers, Community and Religious Leaders, the Organised Private Sector, Professionals, Youth Organisations, Trade Groups, NGOs, Civil Society, Persons Living with Disabilities, amongst others. Your participation embodies the inclusivity that defines this forum and reminds us that governance is truly a joint effort, Ajumose.
“We are confident that the outcome of today’s deliberations will once again make a significant impact on the budget preparation process, ensuring that the interests and aspirations of Lagosians are not only captured but also prioritised and implemented. The State Government remains resolute in translating these inputs into meaningful results, better roads, reliable water projects, quality healthcare and education, decent housing, efficient transport, jobs and valuable initiatives for our youth, and a safer, more liveable city for all,” Balogun stated.
Participants at the forum mentioned projects and programmes that they want the state government to include in the 2026 budget.
