Lagos Unveils 2025 Economic Development Update, State ‘s Economic Performance

The Lagos State Government, through the Ministry of Economic Planning and Budget (MEPB), has unveiled the 2025 Lagos Economic Development Update (LEDU), a comprehensive report that provides a data-driven assessment of the state’s economic performance and outlines strategic policy directions for sustainable growth. Themed “Lagos Economic Outlook: Charting a Resilient Path Towards a Sustainable Future,” the report underscores the government’s commitment to fiscal sustainability, economic diversification, and inclusive development in line with Governor Babajide Sanwo-Olu’s Budget of Sustainability.

Delivering the keynote address at the event, Mr. Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, emphasised the urgency of bridging the revenue gap in Lagos through innovative and transformative strategies. He noted that while Lagos remains Nigeria’s economic powerhouse, its current revenue generation – less than 2% of GDP – lags behind comparable economies worldwide. He stressed that despite its size and economic influence, the state is not generating enough revenue to match its ambitions and that now is the time to change this narrative.

He outlined three key pathways for revenue mobilization. First, he highlighted the potential of property taxation, pointing out that cities like Bogotá in Colombia generate over $1 billion annually from property tax, while Lagos, with one of the most valuable real estate markets in the world, collects far less. He attributed this gap to inefficiencies in land titling, property valuation, and enforcement and proposed reforms that could help the state generate at least ₦1 trillion annually. Recommendations included improving land titling processes, incentivising compliance, and ensuring a transparent property valuation system.

The second pathway focused on personal income tax expansion, leveraging technology to capture high-income earners who should be contributing more to the system. He underscored the need to formalise the informal sector, particularly in Lagos’ thriving digital and creative industries, ensuring that entrepreneurs, event planners, content creators, and entertainers contribute fairly without being overburdened. He advocated for a fair presumptive tax regime, allowing small businesses to grow before being taxed heavily on their successes.

The third area of focus was tax harmonization, calling for a streamlined and modernised tax system to reduce inefficiencies, eliminate redundancy, and foster predictability for businesses and individuals. He stressed that integrating revenue collection systems, improving coordination between tax authorities, and addressing informal levies imposed by non-state actors would enhance transparency, efficiency, and ease of doing business. 

He urged Lagos to take inspiration from global economic success stories like Dubai, Singapore, and Taiwan, leveraging its large population, thriving middle class, and diverse economy to unlock up to ₦5 trillion annually in Internally Generated Revenue (IGR).

In his opening remarks, the Honourable Commissioner for Economic Planning and Budget, Mr. Ope George reaffirmed the state’s commitment to evidence-based policymaking and economic resilience. He emphasised that Lagos remains the economic heartbeat of Nigeria and a major driver of Africa’s prosperity but must continue to evolve its strategies in response to changing economic realities. 

He highlighted key areas of focus, including inflationary pressures, revenue constraints, and global market shifts, stressing the importance of strategic collaboration between government, industry leaders, and stakeholders in driving Lagos’ economic future. He urged all participants to engage actively, contribute ideas, and explore innovative solutions that will propel Lagos forward.

Welcoming participants to the event, the Permanent Secretary of the Ministry of Economic Planning and Budget, Mrs. Olayinka Ojo underscored the significance of data-driven policy decisions in shaping Lagos’ economic trajectory. 

She stated that as the economic nerve centre of Nigeria, Lagos must navigate global and national economic complexities with foresight and strategic planning. She reiterated that the 2025 LEDU report provides critical insights into fiscal sustainability, labour market dynamics, and revenue generation while outlining interventions needed in infrastructure, energy, social protection, skills development, and climate resilience – all of which are integral to achieving the Lagos State Development Plan (LSDP).

The Permanent Secretary emphasised that the day’s discussions are not just about assessing the economy but about taking decisive action. She urged stakeholders, including policymakers, private sector leaders, and investors, to engage in deliberate policies and strategic partnerships that will sustain Lagos’ economic progress. 

Ojo, therefore, stressed that the state’s future prosperity depends on collective efforts to enhance fiscal governance, strengthen revenue mobilization, and create an enabling environment for businesses to thrive.

The presentation of the 2025 Lagos Economic Development Update (LEDU) marks a significant step in Lagos State’s mission to enhance economic governance, strengthen revenue generation, and build a globally competitive economy.

The Lagos State Government remains committed to implementing progressive reforms, fostering transparency, and ensuring a business-friendly environment that drives sustainable development.

Among the dignitaries present at the event were Mr.Sam Egube, Deputy Chief of Staff Lagos State; Prof. Adeola Adenikinju, President, Nigeria Economic Society (NES); Prof Akin Abayomi (HC, Health); Mr. Mobolaji Ogunlende (HC, MYSD); Mr. Jamiu Tolani Alli-Balogun, (HC, Basic & Secondary Education); Mr Lekan Balogun (Special Adviser to Mr Governor on Economic Planning and Budget); Mr. Abdul-Kabir Ogungbo (Special Adviser to Mr. Governor on Taxation & Revenue); Engr. A.L Somide (PS, Works and Infrastructure); Mrs. Kaphayah Sarumi (PS, Office of SDGs); Mrs. Feyisayo Alayande (Executive Secretary, LSETF); Mr. Ugochukwu Obi-Chukwu (CEO, Nairametrics) and Dr. Seye Oyeleye (DG Dawn Commission) amongst others.