LEDU projects N73.15tr GDP for Lagos in 2026
By Seth Ukochukwu
The Lagos Development Update, LEDU, 2026 report has projected significant expansion in the state’s economy, with nominal Gross Domestic Product (GDP) expected to rise to N73.15 trillion this year from N62.66 trillion in 2025, supported by easing inflation, stronger consumption, and improved revenue mobilisation.
Speaking at the presentation of the report, Commissioner, Ministry of Economic Planning and Budget, Lagos State, Mr. Ope George, said that the LEDU 2026 report, with the theme, “Lagos Economic Outlook 2026: Consolidating Resilience, Advancing Competitiveness, Delivering Shared Prosperity”, provides a comprehensive assessment of Lagos State’s economic performance, fiscal position, structural dynamics, and forward-looking policy direction.
He added that, “Lagos State’s economy continued to expand, with Nominal Gross Domestic Product estimated at N62.66 trillion in 2025. Growth, though moderating relative to the immediate post-pandemic rebound, reflects a normalization toward sustainable expansion rather than a slowdown.
“Looking ahead to 2026, the outlook is cautiously optimistic. Nominal GDP is projected to rise to N73.15 trillion, representing growth of approximately 16.7 percent. Inflation is expected to moderate further to 17.59 percent, with food inflation easing to 17.14 percent. These projections provide a stronger macroeconomic foundation for fiscal operations under the 2026 Budget of Shared Prosperity.”
According to the LEDU 2026 report, the projected GDP expansion is expected to strengthen revenue performance and increase the government’s capacity to finance infrastructure development.
The report noted that stronger economic activity would enhance Internally Generated Revenue (IGR), VAT receipts, and other consumption-based taxes, thereby increasing fiscal space for capital projects under the 2026 budget framework.
To achieve the projected growth in GDP, the report recommended that, “The immediate policy priority for 2026 is macroeconomic and service-delivery stabilization, particularly in the context of rising population pressures and growing demand for public services.
“In the short term, government policy is expected to focus on completion of ongoing infrastructure projects, particularly in transport, energy, housing, and urban services, to avoid cost overruns and unlock economic returns.
“Stabilization of core social services, especially healthcare and education, supported by substantial nominal increases in sectoral allocations.
“Managing recurrent expenditure growth, which rose sharply to N2.11 trillion in 2026, to ensure that rising personnel and overhead costs do not crowd out capital investment. The emphasis on infrastructure sustainability and service continuity reflects the expectation that the government must first stabilize systems and delivery platforms before pursuing more ambitious reforms.”