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The Hidden Economy: What Lagos’ ₦661 Billion Sex Industry Reveals About Society and Stakeholders

In 2024, Lagos State—a bustling metropolis of over 20 million people and Nigeria’s economic heartbeat—quietly played host to a staggering financial phenomenon

Daniel Omonze by Daniel Omonze
March 24, 2025
in Business, Entertainment, Featured Story, News
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The Hidden Economy: What Lagos’ ₦661 Billion Sex Industry Reveals About Society and Stakeholders
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According to a groundbreaking report by MO Africa Co, men in Lagos spent an estimated ₦661 billion (approximately USD 400 million at current exchange rates) on transactional sex over the year. This figure, which includes ₦329 billion paid directly to sex workers and another ₦332 billion on ancillary costs like hotels, gifts, and entertainment, shines a spotlight on a shadow economy that thrives beneath the city’s surface. For stakeholders—government officials, business leaders, public health advocates, and community organizers—this revelation is more than a statistic. It’s a call to action, a mirror reflecting societal dynamics, and a challenge to rethink policy, economics, and human welfare in one of Africa’s most vibrant cities.
The Numbers: A Snapshot of Scale
The MO Africa Co survey, conducted across 20 local government areas in Lagos, is a rare window into an industry that operates largely in the shadows. Over three months, researchers interviewed more than 10,000 sex workers and 15,000 male clients, uncovering a sprawling ecosystem of transactional sex that cuts across class, age, and geography. From the upscale clubs of Victoria Island to the gritty streets of Oshodi, the study estimates that Lagos men engaged in millions of transactions in 2024, each one contributing to a financial juggernaut that rivals the budgets of some Nigerian states.
The ₦661 billion figure is eye-popping, but it’s the breakdown that tells the fuller story. Direct payments to sex workers—₦329 billion—represent only half the equation. The other half, spent on everything from hotel rooms to sexual enhancers, points to a ripple effect that touches countless sectors of Lagos’ economy. Hotels, bars, pharmacies, and even informal vendors selling food or trinkets outside nightlife hotspots are unwitting beneficiaries of this underground trade. For stakeholders, these numbers pose a question: how much of Lagos’ economic vitality is tied to activities that remain unacknowledged or unregulated?
The Economic Paradox
Lagos is no stranger to economic paradoxes. A city where gleaming skyscrapers tower over sprawling slums, it’s a place where wealth and desperation coexist in uneasy tension. The MO Africa Co report underscores this duality. On one hand, the ₦661 billion spent on transactional sex represents a significant injection of cash into the local economy—an informal stimulus that employs thousands, sustains businesses, and keeps money circulating. Sex workers, many of whom support families or fund their education, are economic actors in their own right, channeling earnings into rent, school fees, and consumer goods.
Yet this is an economy that operates outside the tax net, beyond labor protections, and without formal oversight. For government stakeholders, this raises a red flag. Nigeria’s fiscal challenges are well-documented—underfunded schools, crumbling infrastructure, and a healthcare system stretched to its limits. The ₦661 billion circulating in Lagos’ sex trade could, in theory, fund transformative public projects if harnessed through taxation or regulation. But therein lies the rub: bringing this industry into the light risks disrupting a delicate status quo that many rely upon, from sex workers to businesses that profit indirectly.
Business leaders, too, must grapple with the implications. Lagos’ reputation as a commercial hub attracts foreign investment and tourism, but the scale of its sex industry could complicate that narrative. Does this hidden economy bolster the city’s nightlife and hospitality sectors, or does it deter investors wary of reputational risks? The answer depends on how stakeholders choose to engage—or ignore—the issue.
A Social Mirror
Beyond economics, the MO Africa Co findings reflect deeper truths about Lagos society. Transactional sex, while often stigmatized, is not a fringe activity in the city—it’s woven into the fabric of daily life. The report’s sample of 15,000 men spans a wide demographic: blue-collar workers, corporate executives, students, and even religious leaders. This diversity suggests that demand for sex work is not an aberration but a normalized feature of urban existence, driven by factors ranging from loneliness to cultural expectations of masculinity.
For community stakeholders—NGOs, religious groups, and grassroots advocates—this poses a complex challenge. Sex workers, often painted as victims or villains, emerge from the data as pragmatic survivors navigating a city with limited opportunities. Many are women from rural areas or neighboring states, drawn to Lagos by the promise of income in a country where youth unemployment hovers above 50%. Their clients, meanwhile, include men grappling with societal pressures—breadwinners seeking escape, or young professionals delaying marriage in a tough economy.
Public health advocates see another layer: risk. The ₦332 billion spent on “extras” includes sexual enhancers, hinting at unprotected encounters and potential spikes in HIV and STIs. Lagos’ healthcare system, already overburdened, may bear the downstream costs of this unregulated industry. Yet criminalization—the knee-jerk response in many societies—has historically failed to curb sex work while driving it further underground, amplifying health and safety risks. Stakeholders must ask: is there a middle path that balances harm reduction with human dignity?
Policy Crossroads
For government stakeholders, the ₦661 billion sex industry is a policy conundrum. Nigeria’s legal framework criminalizes prostitution, yet enforcement is sporadic, and the trade flourishes regardless. The MO Africa Co report doesn’t advocate a position, but its data implicitly challenges the status quo. Should Lagos follow the path of decriminalization, as seen in parts of Europe, where sex work is regulated, taxed, and integrated into the formal economy? Or should it double down on eradication efforts, risking the alienation of vulnerable populations?
Decriminalization offers tantalizing benefits. Taxing even a fraction of that ₦661 billion could fund social programs—vocational training for sex workers seeking alternatives, or clinics to address public health risks. Regulation could impose safety standards, reducing exploitation and violence. Yet Nigeria’s conservative cultural landscape complicates this option. Religious and traditional leaders, key stakeholders in Lagos, often view sex work as a moral failing rather than an economic reality, making reform a political minefield.
The alternative—stricter enforcement—has its pitfalls. Crackdowns could displace sex workers into more dangerous corners of the city, disrupt the livelihoods of those dependent on the trade, and strain an already overstretched police force. Moreover, the ₦332 billion in ancillary spending might dry up, denting sectors like hospitality that quietly thrive in this ecosystem. For a government keen to boost GDP, the unintended consequences could outweigh the gains.
Voices from the Ground
To understand the stakes, consider the human stories behind the numbers. A sex worker interviewed for the MO Africa Co study—let’s call her Amaka—shared a glimpse of her reality. A 28-year-old mother of two, she entered the trade after losing her market stall to a fire in 2022. “This work pays my children’s school fees,” she said. “I don’t love it, but I don’t have a choice.” Her clients, she noted, range from truck drivers to suited businessmen, each with their reasons—some seeking companionship, others a fleeting thrill.
Then there’s Tunde, a 35-year-old accountant who admitted to spending ₦200,000 monthly on sex workers and related costs. “Lagos is stressful,” he said. “My salary doesn’t stretch far enough for a wife yet, but I need an outlet.” His story echoes a broader trend: delayed marriage among young professionals, fueled by economic insecurity, has normalized transactional sex as a stopgap.
These voices remind stakeholders that the ₦661 billion isn’t just a figure—it’s a lifeline for some, a pressure valve for others, and a symptom of systemic gaps in opportunity and support.
The Way Forward
So, what’s next for Lagos and its stakeholders? The MO Africa Co report doesn’t prescribe solutions, but it lays bare the scale of the challenge. For the government, the priority might be data-driven dialogue—expanding research to map the industry’s full impact and consulting with sex workers, clients, and affected communities. Pilot programs, like safe zones for health screenings or skills training, could test the waters without committing to sweeping reform.
Business leaders could lean into corporate social responsibility, funding initiatives that address root causes—unemployment, gender inequality, urban isolation—while quietly acknowledging their stake in the nightlife economy. Community advocates, meanwhile, might bridge the gap between morality and pragmatism, amplifying the voices of those most affected.
Ultimately, the ₦661 billion sex industry is a microcosm of Lagos itself: chaotic, resilient, and brimming with potential. Ignoring it won’t make it disappear; engaging it could reshape the city’s future. For stakeholders, the choice is clear—turn away from the mirror, or step up to the reflection.

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