• Debt commitments take over N700b
Lagos State Governor, Babajide Sanwo-Olu, yesterday, presented a N4.237 trillion budget estimate for the 2026 fiscal year to the state’s House of Assembly for approval, with debt commitments taking over N700 billion.
Sanwo-Olu, while speaking during the presentation, said that about N243.3 billion would be used for deficit financing, N143.8 billion for debt servicing,and N383.4 billion would be used for debt repayments in 2026.
The governor, who described the budget tagged, “Budget of Shared Prosperity,” as a bold and forward-looking financial plan designed to consolidate his administration’s legacy in its final full year, said the budget would be financed from a total revenue estimate of N3.993 trillion of which Internally-Generated Revenue (IGR) is N3.119 trillion and federal allocations will be N874 billion, adding that there is a deficit financing of N243 billion.
According to him, while capital expenditure is expected to take N2.185 trillion, recurrent expenditure is estimated at N2.052 billion.
Sanwo-Olu said general public services would receive N847 billion, public order and safety (N147 billion), economic affairs (N1.372 trillion), environment (N235.9 billion), housing (N123.7 billion), health (N338 billion), recreation (N54.682 billion), education (N249 billion) and social protection (N70 billion).
“In 2026, our focus will shift from building infrastructure to integrating it — linking our roads, rail lines, waterways, energy systems, and digital networks into one functional ecosystem.
“We will push major projects to completion, expand drainage systems, and advance smart city solutions for better connectivity, traffic management, sustainable housing, and public service delivery.
“In 2026, we will accelerate economic growth by strengthening MSMEs, encouraging circular economy initiatives, empowering startups, and advancing innovation across sectors. We will expand support to agribusiness, manufacturing, technology, creative industries, and tourism — driving job creation and boosting competitiveness.
“Our aim is to fast-track the transformation of Lagos State into an engine of opportunity and a global hub for innovation, trade, and enterprise. Good governance is the backbone of development. We will deepen our fiscal reforms, expand e-governance, advance automation of fiscal systems, and enhance transparency across MDAs.
“Security and emergency readiness will remain top priorities, supported by stronger coordination and investments. We will continue to strengthen citizens’ engagement to build trust and ensure that Lagos residents remain at the centre of governance.”
In his remark, the Speaker of the House, Dr Mudashiru Obasa, lauded the governor’s consistent track record and resourcefulness.
He said that the Assembly’s approval of a N125 billion bond in 2025, which was oversubscribed by 170 per cent, was a direct reflection of combined fiscal discipline, transparency, and credibility.
Obasa also praised the establishment of the Lagos State School of Health Science and Medicine, which he believes is a necessary measure to combat the ‘japa’ syndrome (brain drain) among health workers.
He assured Lagos residents that the House would meticulously scrutinise the N4.237 trillion proposal to ensure it aligns with the state’s aspirations for sustained economic resilience and inclusive growth.
