Presenting the report, Commissioner for Economic Planning and Budget, Mr. Ope George, said LEDU 2026, themed “Lagos Economic Outlook 2026: Consolidating Resilience, Advancing Competitiveness, Delivering Shared Prosperity”, offers a detailed assessment of the state’s economic performance, fiscal position, structural dynamics, and forward-looking policy direction.
“Lagos State’s economy continued to expand in 2025, with nominal GDP estimated at N62.66 trillion,” Mr. George said. “While growth has moderated relative to the immediate post-pandemic rebound, this reflects a normalization toward sustainable expansion rather than a slowdown.”
Looking ahead, the report projects a cautiously optimistic outlook for 2026. Nominal GDP is expected to grow by approximately 16.7 percent, while overall inflation is forecast to ease to 17.59 percent, with food inflation moderating to 17.14 percent. The report highlights that these projections provide a stronger macroeconomic foundation for fiscal operations under the state’s 2026 Budget of Shared Prosperity.
LEDU 2026 emphasizes that the anticipated economic growth will boost government revenues, enhancing the state’s capacity to finance critical infrastructure projects. Stronger economic activity is expected to increase Internally Generated Revenue (IGR), Value Added Tax (VAT) receipts, and other consumption-based taxes, expanding fiscal space for capital projects.
The report outlines key policy priorities to sustain the projected growth, including:
- Macroeconomic and service-delivery stabilization, especially in response to rising population pressures and growing public service demand.
- Completion of ongoing infrastructure projects in transport, energy, housing, and urban services, aimed at avoiding cost overruns and unlocking economic returns.
- Stabilization of core social services, including healthcare and education, supported by increased sectoral allocations.
- Management of recurrent expenditure growth, which rose sharply to N2.11 trillion in 2026, ensuring that personnel and overhead costs do not crowd out capital investment.
“The emphasis on infrastructure sustainability and service continuity reflects the expectation that government must stabilize systems and delivery platforms before pursuing more ambitious reforms,” the report stated.
With these measures, Lagos State aims to consolidate its resilience, enhance competitiveness, and deliver shared prosperity for its residents in the coming year.