A new report by the Lagos State Ministry of Planning and Budget titled “The Lagos Economic Development Update (LEDU) 2025” has warned that climate change poses a severe threat to the state’s economy, infrastructure, and food security.
The report found that this could result in losses of up to $29 billion if urgent action is not taken. The report, among other things, highlights how flooding and poor urban planning are exacerbating these challenges, disrupting key sectors such as transportation, agriculture, and public health.
“The financial cost of climate inaction in Lagos is estimated at $22–29 billion. This figure underscores the urgency of addressing climate vulnerabilities to prevent deeper socio-economic inequalities, reduced investor confidence, and long-term damage to key economic sectors.
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“With its unique geographical location as a coastal megacity and its socio-economic significance, the state faces multidimensional risks that threaten its infrastructure, livelihoods, and overall economic stability,” the report states.
Recurrent flooding is damaging roads, bridges, and transit systems, disrupting the movement of goods and services. The report warns that this will “escalate transportation costs and reduce economic efficiency.”
The state’s critical economic activities—including ports, industrial zones, and residential areas—are concentrated in flood-prone zones, making them highly susceptible to extreme weather events. Additionally, rapid urbanization and an overstretched drainage system have worsened the frequency and severity of urban flooding.
“The lack of adequate drainage systems and the overburdening of existing infrastructure increase the frequency and severity of urban flooding,”.
The report warns that changing rainfall patterns are reducing agricultural yields, threatening food security, and leading to price volatility.
“Climate change disrupts rainfall patterns, reduces agricultural yields, and threatens food security,” it states.
Story was adapted from the Guardian.
