May 13, 2025

Nigeria’s economy posted its strongest quarterly growth in ten years at the close of 2024, according to the World Bank. The country’s GDP grew by 4.6% year-on-year in the fourth quarter (Q4), driven by stronger fiscal performance, sustained reform efforts, and improved macroeconomic indicators. During a presentation on Monday, Alex Sienaert, the World Bank’s lead economist for Nigeria, attributed the growth to recent economic reforms, which he said are already yielding results. He added that early indicators suggest continued economic momentum into 2025, with business activity remaining robust. The World Bank forecasts a 3.6% GDP growth for Nigeria in 2025. Sienaert emphasized that several bold policy initiatives by the federal government have improved the country’s economic outlook, increased government revenue, and strengthened Nigeria’s fiscal position. According to the World Bank, government revenue rose by 4.5% of GDP in 2024, supported by more efficient tax administration and higher remittance inflows. The fiscal deficit also narrowed significantly to 3% of GDP, down from 5.4% in 2023. However, the Bank cautioned that the full fiscal benefits of subsidy reforms are yet to be fully realised. Foreign reserves rose to around $37 billion in the last quarter of 2024, supported by a more stable and market-driven foreign exchange regime, which has created a more favorable environment for reserve accumulation. Despite these gains, inflation remains a major concern. Headline inflation stood at 23.18% in February 2025. While food inflation slightly moderated to 23.51%, core inflation increased to 24.43%. Consumer prices surged by 3.90% in March, up from 2.04% in February, signaling ongoing cost-of-living pressures. Sienaert stressed that maintaining fiscal and monetary discipline will be essential to sustaining the current momentum. He noted that tight monetary policy, coupled with consistent reforms, will be key to managing inflation and driving long-term growth. The World Bank will release its full Nigeria Development Update report today in Abuja, offering a comprehensive analysis of the country’s economic trends, reforms, and policy impacts. While significant challenges remain, the Q4 2024 GDP growth figures highlight the positive impact of ongoing reforms and may help boost investor confidence in the months ahead. For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Sunmola David & CO (Chartered Accountants & Tax Practitioners) at Lagos, Ogun state Nigeria offices, www.sunmoladavid.com. You can also reach us via WhatsApp at +2348038460036.

Lagos State recorded a 45% increase in revenue in 2024, reaching N1.3 trillion—up from N895 billion in 2023. This was disclosed by the Commissioner for Finance, Abayomi Oluyomi, during a statement commemorating the second anniversary of Governor Babajide Sanwo-Olu and Deputy Governor Obafemi Hamzat’s second term in office. Speaking at the annual ministerial briefing on his ministry’s performance from 2024 to 2025, Oluyomi revealed that the State generated N14 billion from the Land Use Charge in 2024—a 37% rise compared to the previous year. He also noted that local rating agencies have rated Lagos at A1+, while Fitch Ratings assigned it a AAA rating. According to the commissioner, approximately 800,000 properties are listed in the State government’s database. However, he expressed concern over widespread default on property tax payments. He stated: “Through strategic reforms and innovative financial strategies, Lagos State continues to lead in revenue generation. We ended 2024 with a record N1.3 trillion, marking a 45% increase from N895 billion in 2023.” Oluyomi placed the State’s Gross Domestic Product (GDP) at $259 billion, reaffirming Lagos as not only Nigeria’s economic powerhouse but also the largest sub-national economy in Africa. Addressing the State’s debt profile, Oluyomi said Lagos had the lowest debt-service-to-revenue ratio in the country at 19.2%. He also reported a total-debt-to-GDP ratio of 3.83% and a total-debt-to-revenue ratio of 172% in 2024. To further boost revenue, he announced plans to convert idle government properties worth N3 billion into income-generating assets. Between 2024 and 2025, the State paid N67.9 billion in entitlements to 20,956 retirees, while it received N290.43 million in insurance claims for damage to public infrastructure. Oluyomi highlighted that of the three million registered taxpayers in Lagos, only about 700,000 currently pay taxes. He called on more residents to fulfill their tax obligations, emphasizing that the government would adopt innovative strategies to broaden the tax base and improve compliance. For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Sunmola David & CO (Chartered Accountants & Tax Practitioners) at Lagos, Ogun state Nigeria offices, www.sunmoladavid.com. You can also reach us via WhatsApp at +2348038460036.