The Lagos State House of Assembly has approved a ₦4.4 trillion budget for the 2026 fiscal year following the adoption of the report from the House Committee on Economic Planning and Budget.
Chairman of the committee, Sa’ad Olumoh, presented the report during Thursday’s plenary, detailing the assumptions, projections, and framework of the 2026 Appropriation Bill, dubbed the “Budget of Shared Prosperity.”
According to the report, this budget marks the third budget cycle of the current administration and is the final new-cycle budget for Governor Babajide Sanwo-Olu’s second term.
It aligns with the administration’s development agenda, which is built on four strategic pillars: human-centric development, modern and adaptive infrastructure, a thriving 21st-century megacity economy, and effective governance that surpasses citizens’ expectations.
Olumoh noted that the budget framework was guided by key macroeconomic indicators, including an exchange rate benchmark of ₦1,512 to the dollar, a projected inflation rate of 14.7 per cent, oil production of 2.06 million barrels per day, and a benchmark oil price of $64 per barrel.
The committee also reviewed the 2025 budget performance, reporting a cumulative achievement of 79 per cent as of November 2025. Capital expenditure performance was 75 per cent, recurrent expenditure stood at 87 per cent, and overall revenue performance reached 79 per cent.
For the 2026 fiscal year, the approved budget totals about ₦4.4 trillion, comprising a proposed recurrent expenditure of ₦2.052 trillion and capital expenditure of ₦2.185 trillion. The significant allocation to capital expenditure highlights the state government’s commitment to infrastructure development.
The budget includes provisions for personnel costs, overheads, debt servicing, and debt repayment, with a projected deficit of approximately ₦243 billion, to be financed through approved deficit financing measures.
During deliberations, lawmakers praised the budget, describing it as realistic and growth-oriented.
Aro Moshood revealed that an additional ₦171 billion was incorporated into the budget during the review process.
Femi Saheed stated that the size and structure of the budget demonstrate that Lagos State remains on a strong economic footing, provided all stakeholders fulfill their responsibilities.
Similarly, Gbolahan Yishawu, representing Eti-Osa Constituency II, stressed the importance of revenue reforms and prudent loan repayment strategies, noting that effective implementation would further enhance the state’s fiscal position.
The Assembly also received assurances from relevant officials that revenue-generating agencies would collaborate to meet—and possibly exceed—the projected revenues.
Following deliberations, the House adopted the committee’s report, conducted the third reading, and passed the 2026 Appropriation Bill into law.
Governor Babajide Sanwo-Olu had earlier submitted a ₦4.237 trillion spending proposal to the House on November 25, 2025, noting that the budget was designed to accelerate economic growth, deepen infrastructure development, and maintain fiscal responsibility.
He also disclosed that the budget anticipates total revenue of about ₦3.99 trillion, with ₦3.12 trillion expected from internally generated revenue and ₦874 billion from federal transfers, while the deficit financing plan is projected at approximately ₦243.3 billion.
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