Lagos, Africa’s largest city, is at risk of losing up to $29 billion as climate change intensifies flooding, damages critical infrastructure, and threatens food security. A new government report warns that without urgent action, the state’s economy could suffer long-term consequences.
The Lagos Economic Development Update (LEDU) 2025, released by the Lagos State Ministry of Planning and Budget, highlights how coastal erosion, extreme weather, and poor urban planning are making the city increasingly vulnerable. With over 27 million residents, Lagos is grappling with rising sea levels that are already affecting transportation, agriculture, and public health.
“This financial cost underscores the urgency of addressing climate vulnerabilities to prevent deeper socio-economic inequalities, reduced investor confidence, and damage to key sectors,” the report states.
Flooding Cripples Transportation and Trade
Recurrent flooding is damaging roads, bridges, and ports, disrupting the movement of goods and driving up transportation costs. The report warns that these disruptions could destabilize Lagos’ role as Nigeria’s economic powerhouse, affecting both local businesses and national trade.
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With Lagos’ economy valued at $259 billion, the city contributes significantly to Nigeria’s GDP. However, its major economic hubs—including Apapa, Victoria Island, and Lekki—are among the most flood-prone areas. Rising waters threaten industrial zones, residential estates, and commercial centers, increasing financial risks for businesses.
Additionally, poor drainage systems and rapid urbanization have worsened the crisis. Experts warn that without improved flood control infrastructure, Lagos’ economic growth could slow significantly.
Food Security at Risk as Agriculture Suffers
Climate change is disrupting rainfall patterns, reducing agricultural yields, and causing food shortages. The report highlights how unpredictable weather conditions are affecting local farming, leading to higher food prices and worsening poverty.
Residents are already feeling the impact. Staple food costs have surged, straining household budgets and pushing vulnerable populations deeper into economic hardship. The situation could worsen in the coming years if climate resilience strategies are not effectively implemented.
Health Risks Rise as Water Contamination Spreads
Beyond economic damage, climate change is also worsening health conditions in Lagos. Rising temperatures, frequent flooding, and poor sanitation are fueling outbreaks of malaria, cholera, and other waterborne diseases.
Healthcare facilities are under strain as the city struggles to contain disease outbreaks linked to environmental degradation. The report warns that unless the government strengthens public health infrastructure, Lagos could see a surge in climate-related illnesses in the coming years.
Government Response: Climate Action and Circular Economy
In response to these growing threats, the Lagos State Office of Climate Change and Circular Economy (OCCE) has launched several initiatives, including:
Climate Action Plan (2020–2025): A roadmap for reducing emissions and improving climate resilience.
International Partnerships: Collaborations with the United Nations and Carbonivity to secure climate finance.
Circular Economy Initiatives: Waste reduction, recycling, and sustainable production programs.
Educational Advocacy: Public campaigns to raise awareness about climate risks.
Carbon Registry: A tracking system to monitor emissions and ensure compliance with climate goals.
Despite these efforts, the report identifies funding constraints, weak monitoring frameworks, and limited regional collaboration with Ogun State as major challenges. Experts urge the Lagos government to accelerate climate adaptation strategies before economic losses become irreversible.
