The Lagos State House of Assembly has passed the ₦4.4 trillion 2026 Appropriation Bill, approving an increase of ₦171 billion above the proposal earlier submitted by Governor Babajide Sanwo-Olu.
The budget, tagged the “Budget of Shared Prosperity,” prioritises infrastructure development, education, healthcare, economic growth and social development, with more than 52 per cent of the total allocation dedicated to capital projects.
The approval followed the adoption of the report of the House Committee on Economic Planning and Budget during plenary on Thursday. Presenting the report, the committee chairman, Hon. Sa’ad Olumoh, outlined the assumptions, projections and structure of the 2026 fiscal plan, noting that it represents the third budget cycle of the current administration and the final new-cycle budget of Governor Sanwo-Olu’s second term.
According to Olumoh, the budget is aligned with the administration’s development agenda, built around four strategic pillars: human-centred development, modern and adaptive infrastructure, a thriving 21st-century megacity economy, and effective governance that exceeds citizens’ expectations.
He said the budget framework was informed by key macroeconomic indicators, including an exchange rate benchmark of ₦1,512 to the dollar, an 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 performance of the 2025 budget, reporting a cumulative implementation rate of 79 per cent as of November 2025. Capital expenditure performance stood at 75 per cent, recurrent expenditure at 87 per cent, while overall revenue performance was also put at 79 per cent.
For the 2026 fiscal year, recurrent expenditure was approved at ₦2.052 trillion, while capital expenditure stands at ₦2.185 trillion, reflecting the state government’s continued emphasis on infrastructure development. The budget also makes provisions for personnel costs, overheads, debt servicing and debt repayment, with a projected deficit of about ₦243 billion to be financed through approved deficit funding options.
Governor Sanwo-Olu had presented an initial proposal of ₦4.237 trillion to the Assembly on November 25, 2025, describing it as a budget 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 said during his budget presentation.
During deliberations, lawmakers commended the budget, describing it as realistic and growth-oriented. Hon. Aro Moshood disclosed that an additional ₦171 billion was added during the review process, while Hon. Femi Saheed said the size and structure of the budget showed that Lagos State remained on a strong economic footing, provided effective implementation was ensured.
Hon. Gbolahan Yishawu, representing Eti-Osa Constituency II, stressed the importance of revenue reforms and prudent loan repayment structures, noting that proper execution would further strengthen the state’s fiscal position.
The Assembly also received assurances from relevant officials that revenue-generating agencies would work closely together to ensure that projected revenues are met and possibly exceeded.
