Lagos State Governor Babajide Sanwo-Olu on Tuesday presented a proposed N4.237 trillion budget for the 2026 fiscal year to the state House of Assembly.
The proposal marks a significant increase of over N1 trillion compared to the N3.005 trillion budget for 2025, presented last November.
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“This budget is proposed at a total size of N4.237 trillion. It comprises total revenue of N3.993 trillion, with a deficit financing of N243.332 billion. The revenue includes internally generated revenue (IGR) of N3.119 trillion and total federal transfers of N874 billion,” the governor said.
Capital and recurrent expenditure
Governor Sanwo-Olu proposed N2.185 trillion for capital expenditure and N2.055 trillion for recurrent expenditure, which will cover overheads, personnel, and debt servicing.
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He allocated N698.891 billion to overhead costs, N201.216 billion to subventions, and N184.139 billion to dedicated expenditures, bringing the total overhead allocation to N1.084 trillion.
Personnel costs will amount to N440.449 billion, while debt servicing will include N143.876 billion for recurring debt charges and N383.404 billion for debt repayment.
Sectoral allocations
The governor assigned N847.472 billion to general public service, N147.040 billion to public order and safety, and N1.372 trillion to economic affairs.
He allocated N235.957 billion to the environment, N123.760 billion to housing, N338.449 billion to health, and N249.132 billion to education. Recreation and culture will receive N54.682 billion, while social protection will be allocated N70.024 billion.
Sanwo-Olu said these allocations reflect the administration’s priorities in infrastructure, human capital development, and social welfare.
The proposal will now undergo legislative scrutiny before being passed into law.
Governor Sanwo-Olu said that as of the third quarter of 2025, the state had implemented N2.056 trillion of the 2025 budget, representing 81 per cent of the prorated estimate of N2.525 trillion. Capital expenditure stood at N1.238 trillion, or 90 per cent of the prorated estimate of N1.553 trillion.
The budget presentation, presided over by Speaker Mudashiru Obasa, drew members of the state executive council, local government chairmen, traditional rulers, and other invited guests.
Governor Sanwo-Olu began his address at about 1:25 p.m., unveiling the proposal tagged “Budget of Shared Prosperity.”
Addressing the 40-member legislature, the governor said the 2026 spending plan aims to deepen inclusive growth and ensure that development benefits all residents.
“Our mission remains clear: to eradicate poverty and build a Lagos that works for all,” he said.
He explained that the proposal rests on four strategic pillars: a human-centred approach, modern infrastructure, a thriving economy, and good governance.
If approved, the N4.237 trillion proposal will mark a significant expansion of Lagos’ annual appropriation, representing a cumulative increase of more than N3 trillion over five years.
Budget data shows the state’s spending plan rose from N1.1 trillion in 2021 to N4.237 trillion in 2026. The figures include N1.75 trillion in 2022, N1.76 trillion in 2023, N2.26 trillion in 2024, and N3.366 trillion in 2025.
READ ALSO: Gov Eno budgets N1.39 trillion for 2026, reiterates commitment to food security in Akwa Ibom
Governor Sanwo-Olu said the new proposal reaffirms Lagos’ growth trajectory and builds on existing development foundations.
“We remain determined to complete all ongoing projects,” he added.
Security personnel from the police, the Nigeria Security and Civil Defence Corps, and the Lagos State Neighbourhood Safety Corps manned key entry points within and around the Assembly complex.
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