Lagos Takes New Position in Ranking of Africa's Economy As Dangote Refinery Pushes GDP Up
- Lagos state, Nigeria now holds a new position in the list of Africa's largest economies
- This push was triggered by several commercial activities in the small state, including the recent one from Africa's biggest refinery
- There are also major key projections in the LEDU report that projects massive GDP growth till 2027
Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.
Number one commercial city in Nigeria, Lagos state has attained a new position in the ranking of Africa’s economy.
This is thanks to the Dangote Petrochemical Refinery that recently started operations in the state, pushing the Gross Domestic Product (GDP) ratio up to $259 Billion.
At the top of the list of Africa’s largest economies is Cairo in Egypt, and Lagos state, Nigeria now occupies the enviable second position.
Source: Getty Images
Lagos State Commissioner of Economic Planning and Budget MEPB, Ope George, shared this new update at the official launch of the Lagos Economic Development Update (LEDU) 2025, noting that the GDP computation is based on Purchasing Power Parity (PPP)
Presenting the LEDU 2025 report themed: Lagos Economic Outlook: Charting a Resilient Path Towards a Sustainable Future, George revealed that the Lagos state economy grew significantly from N19.65 trillion in 2023 to N27.38 trillion in 2024 amid the tough economic reforms Nigeria recorded.
According to This Day report, the LEDU 2025 also includes key assumptions that project a GDP growth from N54.77 trillion in 2024 to N66.47 trillion in 2025, and about 5.02% to 6.49% real GDP growth.
Dangote Refinery pushes Lagos GDP up
Lagos state, though the smallest in landmass in Nigeria, is host to many multinationals and thriving businesses, thus accounting for a bulk of the commercial activities in Nigeria.
It is also host to the Nigerian Exchange, which is reputed to be Africa’s largest stock market, and just last year, the Dangote Refinery started operations.
The 650,000bpd refinery is one of the largest in the world, and at full capacity is the largest in Africa.
Its products serve the local Nigerian market, and the company has also commenced major export activities in Ghana, Cameroon, Europe, Angola, the United States of America, and South Africa.
Source: Getty Images
However, there are challenges. Just recently, residents and companies in Lagos state were thrown into darkness due to transmission line cuts.
Issues such as power cuts, and high energy and rent costs complicate business operations, restricting their growth as they struggle to survive the challenges.
Lagos state to commence Lekki Intl. Airport
In related news, Lagos State is set to commence the construction of the long-anticipated Lekki-Epe International Airport.
The signing of a Memorandum of Understanding (MoU) with Summa Group, a globally recognised construction firm, marks a critical step in this project.
The state government is looking to use this airport to stimulate economic growth in the Lekki-Epe axis, improve connectivity, and attract global investments.
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Source: Legit.ng
