Blog Details

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

* Economic Affairs has largest share of N1.372trn

Segun James 

Governor Babajide Sanwo-Olu of Lagos State yesterday presented a N4.237 trillion budget proposal for 2026 before the House of Assembly.

The budget had a total revenue of N3.993 trillion and deficit financing of N243.332bn.

Tagged, “The Budget of Shared Prosperity,” Sanwo-Olu said the budget was meant to build a Lagos that worked for everyone, that was safe and secure.

According to him, the total expected Internally Generated Revenue (IGR) is N3.119 trillion, with Total Federal Transfer of N874,000 billion.

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

The Recurrent Expenditure was 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, N440.494bn; Recurrent 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.

Sanwo-Olu had in 2025 presented a budget size of N3.367trn with a total revenue estimate of N2.968 trillion, comprising N2. 230 trillion from IGR.

The governor revealed the performance of the Y2025 Budget, saying as at the third quarter of Y2025, the period ending September 30, 2025, the state government had implemented N2.056trn representing, 81 per cent of the projected estimate of N2.525trn

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

Presenting the 2026 budget proposal, 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.”

Sanwo-Olu stated that the 2026 was 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 disclosed that the 2026 budget was anchored on four pillars: A Human-Centred Approach, Modern Infrastructure, A Thriving Economy, and Effective Governance.