Sanwo-Olu proposes N4.24tn 2026 budget to Lagos Assembly
Lagos State Governor Babajide Sanwo-Olu has introduced a landmark budget of N4.237 trillion for 2026, referring to it as the “Budget of Shared Prosperity.”
This proposal, presented to the State House of Assembly, marks a notable increase exceeding N1 trillion compared to the 2025 budget.
Sanwo-Olu emphasized that Lagos continues to be a prominent economic center on the continent.
“This budget is set at a total of N4.237 trillion. It includes total revenue of N3.993 trillion, resulting in a deficit financing of N243.332 billion. Our revenue sources consist of N3.119 trillion from internally generated revenue and N874 billion from federal transfers,” the governor explained.
Sanwo-Olu outlined a budget proposal of N2.185 trillion allocated for capital expenses and N2.055 trillion for recurring expenditures, incorporating overheads, personnel costs, and debt servicing.
The governor provided a comprehensive breakdown of the proposed recurrent expenditures, totaling N2.055 trillion, which is detailed as follows:
Detailing the recurrent expenses, Sanwo-Olu specified:
Overhead costs: N698.891 billion
Subventions: N201.216 billion
Dedicated expenditure: N184.139 billion
Total overhead allocation: N1.084 trillion.
Personnel expenses were designated N440.449 billion.
For debt servicing, N143.876 billion was allocated for recurring charges, along with N383.404 billion for repayment of principals.
These planned allocations highlight the administration’s ongoing commitment to infrastructure, human capital development, and social welfare.
The budget proposal will now undergo review and approval by the state legislature.
This announcement coincides with Lagos State's demonstration of robust financial health, as its Internally Generated Revenue has significantly increased from N815.86 billion in 2023 to N1.26 trillion in 2024.
Moreover, the governor stated that by the third quarter of 2025, the state had achieved an 81 percent implementation rate of the current year’s budget, having utilized N2.056 trillion against a prorated target of N2.525 trillion.
Capital expenditure was particularly strong, with N1.238 trillion spent, which represents 90 percent of its prorated target.
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