The Lagos State House of Assembly has approved Governor Babajide Sanwo-Olu’s N4.4 trillion 2026 budget, marking the passage of the state’s “Budget of Shared Prosperity.”
The approved appropriation represents an increase of N171 billion over the N4.237 trillion proposal earlier presented by the governor, with lawmakers prioritising infrastructure development, social services, and economic growth.
More than 52 per cent of the budget is allocated to capital expenditure, underscoring the state government’s focus on inclusive growth through major infrastructure projects, education, healthcare, and social development initiatives.
The budget was passed on Thursday following the adoption of a report by the House Committee on Economic Planning and Budget, presented by its chairman, Hon. Sa’ad Olumoh, during plenary.
According to the committee, the 2026 appropriation is the third budget cycle of the current administration and the final full-cycle budget of Governor Sanwo-Olu’s second term.
Olumoh explained that the fiscal plan aligns with the administration’s development agenda, anchored on four strategic pillars: human-centred development, modern and adaptive infrastructure, a thriving 21st-century megacity economy, and effective governance.
The committee noted that the budget framework was informed by key macroeconomic assumptions, including an exchange rate benchmark of N1,512 per dollar, inflation rate of 14.7 per cent, oil production of 2.06 million barrels per day, and an oil price benchmark of $64 per barrel.
A review of the 2025 budget performance showed a 79 per cent overall implementation rate as of November 2025, with capital expenditure at 75 per cent and recurrent expenditure at 87 per cent.
For the 2026 fiscal year, recurrent expenditure was approved at N2.052 trillion, while N2.185 trillion was allocated to capital projects.
The budget also makes provisions for personnel costs, overheads, debt servicing, and repayments.
The projected deficit of about N243 billion is expected to be financed through approved deficit-financing mechanisms.
Presenting the budget to the Assembly in November 2025, Sanwo-Olu said the proposal was designed to promote shared prosperity and build a Lagos that benefits all residents.
“Our mission remains clear to eradicate poverty and build a Lagos that works for all,” the governor stated.
Lawmakers during deliberations described the budget as realistic and growth-driven.
Hon. Aro Moshood disclosed that the Assembly approved the additional N171 billion during the review process, while Hon. Femi Saheed said the size and structure of the budget reflected Lagos State’s strong economic position.
Hon. Gbolahan Yishawu, representing Eti-Osa Constituency II, emphasised the importance of revenue reforms and prudent debt management, noting that effective implementation would further strengthen the state’s fiscal health.
The Assembly also received assurances from revenue-generating agencies on improved collaboration to meet and possibly exceed projected revenue targets.
