.Budget anchors on four pillars with deficit financing of N243.332bn

.Economic Affairs has largest share of N1.372trn
Segun James

Lagos State Governor, Mr Babajide Sanwo-Olu yesterday presented a N4.237 Trn Appropriation Bill of budget estimate for the year 2026 before the State House of Assembly.

The budget has a Total Revenue of N3.993 Trillion and Deficit Financing of N243.332bn.

Tagged, ‘The Budget of Shared Prosperity,’ Sanwo-Olu said that the budget is meant to build a Lagos that works for everyone, that is safe and secured.

According to him, the total expected Internally Generated Revenue is N3.119 Trn with Total Federal Transfer of N874,000bn.

For Capital Expenditure of N2.185trn and Recurrent Expenditure of N2.052trn comprising total overhead, total personnel cost, and recurrent debt service.

The Recurrent Expenditure is broken down as follows: Total Overhead Cost: N1.084trn made up of Overhead, N698.890bn.

Subventions: N201.216bn, Dedicated Expenditure: N184.139bn, Personnel & Debt, comprising, Total Personnel Cost: N440.494bnRecurrent Debt Charges: N143.876bn and Debt Repayments, N383.404bn.

Sectoral Allocation, General Public Services- N847.472bn, Public Order & Safety– N147.040bn, Economic Affairs – N1.372trn, Environment – N235.957bn, Housing – N123.760bn, Health – N338.449bn, Recreation – N54.682bn, Education – N249.132bn and Social Protection – N70.024bn.

Governor Sanwo-Olu had in 2025 presented budget size of ₦3.367trn with a total revenue estimate of ₦2.968 trillion, comprising N2. 230 trillion from Internally Generated Revenue (IGR), Capital Receipts of N111

The Governor revealed the performance of the Y2025 Budget, saying as at the third quarter of Y2025, the period ending 30th September 2025, the State government had implemented N2.056trn representing 81 percent of the projected estimate of N2.525trn

Actual capital expenditure stood at N1.238trn representing 90 percent of the projected estimate of N1.553 trn, while actual recurrent expenditure stood at N818.577trn representing 84 percent of the prorated estimate of N971.722Trn.

Speaking on the 2026 budget proposal, Governor Sanwo-Olu said, “Mr. Speaker, I am indeed honoured to present to you today the Year 2026 Budget proposal of Lagos State, tagged “Budget of Shared Prosperity.” The Year 2026 Budget as proposed has a total budget size of N4,237,107,009,308 comprising:

Governor Sanwo-Olu noted, the Year 2026 is a reaffirmation of collective belief that Lagos would continue to rise, lead and create opportunities for every resident of Africa’s preferred megacity.

He added the budget would be the last full year of his administration, “making it a pivotal period for consolidating our legacy and ensuring a strong, successful finish. We remain determined to complete all ongoing and initiated projects, and we will continue to engage Lagosians so that their priorities consistently guide our actions.

“Having consistently laid solid foundations in the past years, we are now moving into a phase of accelerated impact. The investments we are making — in our people, in infrastructure, in social systems, in governance — are deliberate, inclusive, future-focused, and prosperity-driven.

“To recap, our objectives are clear and our resolve unshakable: To keep Lagos secure; to keep Lagos working; to keep Lagos growing and to ensure that this growth and prosperity are shared by all who call this hub of excellence home.”

The Governor further disclosed that the Year 2026 Budget is anchored on four pillars: A Human-Centred Approach, Modern Infrastructure, A Thriving Economy, and Effective Governance.

“Mr. Speaker, our foremost priority remains the wellbeing of every Lagosian. To this end, in 2026 we will expand access to quality education, strengthen healthcare delivery, widen social protection, and accelerate affordable housing.

“We will improve urban renewal, waste management, and flood resilience, while ensuring that women, youth, older persons, and persons with disabilities are fully supported. Our goal is a Lagos that cares, includes, and uplifts.

“In 2026, our focus will shift from building infrastructure to integrating it — linking our roads, rail lines, waterways, energy systems, and digital networks into one functional ecosystem.

“We will push major projects to completion, expand drainage systems, and advance smart city solutions for better connectivity, traffic management, sustainable housing, and public service delivery.

“In 2026, we will accelerate economic growth by strengthening MSMEs, encouraging circular economy initiatives, empowering startups, and advancing innovation across sectors.

“We will expand support to agribusiness, manufacturing, technology, creative industries, and tourism — driving job creation and boosting competitiveness.

“Our aim is to fast-track the transformation of Lagos into an engine of opportunity and a global hub for innovation, trade, and enterprise.

“Good governance is the backbone of development. We will deepen our fiscal reforms, expand e-governance, advance automation of fiscal systems, and enhance transparency across MDAs.

“Security and emergency readiness will remain top priorities, supported by stronger coordination and investments. We will continue to strengthen citizen engagement to build trust and ensure that Lagosians remain at the centre of governance.”

While admitting that the House of Assembly had remained a dependable partner on every step of this journey, he extended appreciation for the cooperation, oversight, and steadfast commitment to the greater good of the State.

“Together, we have shown that progress is possible when leadership and partnership move in the same direction.

“I must not fail to acknowledge the diligent work of the Lagos State civil service across all our Ministries, Departments, and Agencies. Day in and day out, they are on the frontlines, executing and implementing the vision, translating lofty goals into transformational results for the people of Lagos State.

“To the leadership and members of the Lagos State Chapter of the All Progressives’ Congress, I say a big thank you. We would not be here, delivering these results, without you — without the progressive platform you have given us the privilege to serve.

“And to all the good people of Lagos State, your high expectations are the fuel for this work that we do and this collective sacrifice of governance. Let me again assure you that we will live up to, and go beyond, your expectations. You deserve nothing but the highest levels of excellence in service.

“As we present this budget, we recognise the challenges ahead, but we also recognise the extraordinary resilience and creativity of our people — the true engine of Lagos. Their strength inspires us, their aspirations guide us, and their success remains our ultimate measure of performance.

“Let us therefore move forward with renewed momentum and shared purpose — determined to build a Lagos that is stronger, cleaner, safer, more prosperous, and more inclusive than ever before. A Lagos that stands as a model for Africa and a global symbol of what visionary governance can achieve.”

In his reaction, the Speaker of the State House of Assembly, Rt. Hon. Mudashiru Obasa said the collaboration with the Executive has been of tremendous help to the success of Sanwo-Olu administration.

“Our commitment to citizen engagement remains steadfast. Through our annual Stakeholder Meetings, held simultaneously across all constituencies, we ensure that Lagosians have a voice. We believe governance works best when people are listened to, not just talked at.

“And perhaps most personally gratifying for me is that we recently passed a landmark bill, University of Medicine and Health Sciences Law, 2025, establishing the Lagos State School of Health Science and Medicine. This is so dear to us because we want to stop the brain drain, the “japa” syndrome of our health workers, to create opportunities for our brilliant young people to stay and serve in Lagos and, by extension, Nigeria. This will encourage them to study, to heal, to build, right here at home.

“Reflecting on the 2025 fiscal year, I can say with confidence that the current budget’s execution has been promising, especially in health, education, transport, and security.

“For 2026, the proposed ₦4.237 trillion budget must match Lagosians’ aspirations. It must further economic resilience, improve welfare, strengthen security, and build enduring infrastructure.

“Our economic strength rests on unity, thoughtful planning, and inclusive policies. We are a state defined by human liberty and responsible governance. Our strength is not in arrogance but in unity, in our sophistication, and in our commitment to building for the future. These are the true strengths of our socio-economic status, and we cannot depart from them.”

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